The National Stock Exchange (NSE) on February 13, 2024, issued a Corrigendum in a circular regarding the Liquidity Enhancement Scheme Silver Options (Option in Goods), download Ref No - NSE/COM/60667 dated February 13, 2024. It is to be noted that this circular supersedes the aforesaid circular.
The Members of the Exchange are notified as follows:
Based on the market feedback received by the Exchange, it has been decided to enhance the Liquidity Enhancement Scheme (LES). The salient features of the LES on Silver (30 Kgs) Options on Goods contracts have been consolidated in this Circular.
The trading members who are interested in providing continuous quotes as Market Makers shall be required to register with the Exchange. Members registered as Market Makers shall be required to fulfil order level obligations as specified in this circular.
There shall be a total of five market makers (MM1, MM2, MM3, MM4 and MM5) for the Silver (30 kgs) Options on Goods contracts. The MM1 and MM2 appointed as per the existing LES on Silver, which was effective from November 27, 2023, shall continue as MM1 and MM2 as per the enhanced LES as per this circular, as the obligations and other requirements for MM1 and MM2 continue to remain the same. However, the MM3 appointed as per the existing LES on Silver shall discontinue w.e.f March 01, 2024.
The interested applicants can submit their bids in the format specified (as per Annexure I) on or before February 19, 2024 (1900 hrs) to become eligible for being appointed as the designated market makers. Based on the bids received, NSE would evaluate bids as per the grading scale given in Annexure II.
A trading member may apply to be a designated market maker only under one category i.e., either Market maker 3 or Market maker 4 or Market maker 5. The existing MM1 and MM2 and their related entities shall not be eligible to apply for becoming a designated market maker under this scheme.
For further details, please refer to the circular and also find the Annexures attached to the document below.
[Circular No: 10/2024]
