NEW Market Making Incentive Program

As part of our ongoing commitment to develop the full Government of Canada yield curve, MX is pleased to announce a new Market Making Incentive Program (MMIP) for Options on Three-Month Canadian Bankers Acceptance Futures (OBX), beginning in February 2013.

The OBX MMIP is a program that allows approved participants and foreign approved participants involved in fixed income trading to receive compensation and discounted fees for the market making of the OBX contract.

Benefits

• Fixed compensation: $300,000 per year, to be distributed equally among selected market makers, for a two-year period, paid monthly.
• Variable compensation: MX will redistribute on a prorated basis an amount equal to 20% of its net trading revenues (net of rebates) for a period of five years for any additional trading volumes above the current average daily volume of 2,000 OBX contracts.
• Full waiver of execution fees on the OBX contract.

Payment of the fixed compensation and profit sharing will be dependent on continuous market making over the entire relevant period. Detailed information can be found in the "Request for Proposal for the Market Making of Options on Three-Month Canadian Bankers' Acceptance Futures (OBX)" circular.

How does an approved participant (domestic or foreign) qualify for the program?

To qualify for the MMIP, an approved participant must demonstrate sufficient technology, capitalisation, and experience and must submit a written proposal in response to the items described in the Request for Proposal.

For more information or to apply

All approved participants or foreign approved participants interested in participating in the program can contact Joanne Elkaim, Director, Fixed Income Derivatives, by email at jelkaim@m-x.ca.

Additional information

• Request for Proposal for the Market Making of Options on Three-Month Canadian Bankers' Acceptance Futures (OBX)
• Market Making Program Proposal Form
• MX 2012 Futures and Options Summary Guide