Bahrain Bourse (BHB) has announced the implementation of its Comprehensive Trading Incentive Scheme, set to take effect on February 2, 2025. The initiative aims to boost market participation, increase liquidity, and encourage active involvement from brokers, market makers and liquidity providers.
The scheme supports Bahrain’s Financial Services Sector Development Strategy (2022–2026) and complements the Listing Incentives Programme launched in 2024. It is designed to provide tailored benefits to market participants, encouraging higher trading volumes in compliance with Bahrain Bourse’s operational rules and clearance processes managed by Bahrain Clear.
Newly onboarded members who adopt online connectivity will benefit from reduced costs, including a 20% discount on Membership Registration Fees and a waiver of Membership Annual Subscription Fees for the first two years for one connection. For existing members trading via online platforms, the scheme offers rebates based on their annual trading activity. Members achieving trading volumes above BHD 75 million annually will receive a 10% rebate on commissions, which increases to 20% for volumes exceeding BHD 140 million and 30% for those surpassing BHD 220 million. The rebates are capped at BHD 20,000 annually and will be calculated based on total commissions paid to Bahrain Bourse.
Additionally, the scheme incentivises market makers and liquidity providers by linking rebates to their presence in the market. Those maintaining an order presence between 60% and 80% for each security will receive a 50% rebate on commissions, while those exceeding 80% order presence will qualify for a full commission rebate. These rebates will also be assessed annually and based on total commissions paid.
“The Comprehensive Trading Incentive Scheme is a significant step in our ongoing efforts to enhance market efficiency and encourage active participation across all market segments,” said Abdulla Mohamed Janahi, Senior Director of Trading Operations at Bahrain Bourse. “By introducing these targeted incentives, we aim to create a dynamic and inclusive capital market environment, in line with Bahrain’s Financial Services Sector Development Strategy (2022-2026).
“By incentivising greater market engagement, Bahrain Bourse aims to deepen market liquidity, encourage active trading, and bolster the overall capital market ecosystem in the Kingdom of Bahrain.”
This initiative marks a strategic move by Bahrain Bourse to foster a more dynamic and engaging capital market ecosystem, driving both local and international market participation while advancing Bahrain’s financial services sector.