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Liquidity Incentive Schemes

Nasdaq Dubai has introduced a liquidity incentive scheme that gives its brokers a 100% rebate on trading and clearing fees charged by the exchange, for listed securities in which they act as market makers.

The scheme is open to any Nasdaq Dubai Member that is licensed as a market maker, and that also signs an agreement with the exchange to make a market in a specified security or securities.

The liquidity incentive scheme is structured to encourage market makers on the region’s international exchange to maintain tight spreads in securities, promoting supply and demand and facilitating reliable price formation as well as liquidity.

Market makers are required under the scheme to maintain specific buy and sell order sizes in the order book, refreshed every 10 minutes. There is no cap on the maximum level of rebate available to participating market makers.