Exchange must not introduce a liquidity incentive scheme unless:
(a) participation in such a scheme is limited to:
Member of the Exchange; or
(ii) any other
Exchange has undertaken due diligence to ensure that the Person is of sufficient good repute and has adequate competencies and organisational arrangements; and
Person has agreed in writing to comply with the Business Rules of the Exchange so far as those rules are applicable to that Person's activities; and
(b) it has obtained the
DFSA's prior written approval for the scheme.
(2) For the purposes of this section, a liquidity incentive scheme means an arrangement designed to provide liquidity in the market or in relation to a particular
Investment or class of Investments.
Exchange must, at least 10 business days prior to the introduction of a liquidity incentive scheme referred to in (1), lodge with the DFSA a notification containing:
(a) the details of the relevant scheme;
(b) the benefits to the
Exchange and its Members and other users resulting from the scheme;
(c) a certification by it that the requirements in (1)(a) have been fully met; and
(d) the date on which the scheme is intended to become operative.
DFSA will, within 10 business days of receiving the notification referred to in (3), approve the proposed liquidity incentive scheme unless it has reasonable grounds to believe that the introduction of the scheme is reasonably likely to be detrimental to the existence of Proper Markets. Where the DFSA does not approve the proposed liquidity incentive scheme, it will notify the Exchange of its objections to the introduction of the proposed liquidity incentive scheme, and its reasons for that decision.
(5) If the
DFSA decides to exercise its power under (4) not to approve a proposed liquidity incentive scheme, the Exchange may refer the matter to the FMT for review.
Exchange must, as soon as practicable, announce the introduction of the liquidity incentive scheme, including the date on which it becomes operative and any other relevant information.