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30 SEPTEMBER 2015 CIRCULAR 15/206 ICE FUTURES EQUITY INDEX FUTURES: PRIMARY MARKET MAKER (“PMM”) PROGRAMME FOR THE FTSE 100 DIVIDEND INDEX FUTURES RDSA WITHHOLDING (XZ) AND THE FTSE 100 DECLARED DIVIDEND INDEX FUTURES (YZ) CATEGORY Trading ATTACHMENTS None The purpose of this Circular is to invite Members to apply to participate in the new Primary Market Maker (“PMM”) Programme in respect of the FTSE 100 Dividend Index Contract – RDSA Withholding (Contract code XZ) and the FTSE 100 Declared Dividend Index Contract (Contract code YZ). Circular 15/136 dated 30 June 2015 informed Members of the extension of the existing PMM Programmes from 01 July 2015 until 30 September 2015. This Circular informs Members of the launch of a new PMM Programme from 01 October 2015 until 31 March 2016 for both the FTSE 100 Dividend Index Contract – RDSA Withholding (Contract code XZ) and the FTSE 100 Declared Dividend Index Contract (Contract code YZ). The appointed PMMs will benefit from Exchange and Clearing fee reductions in return for fulfilling quantified market obligations for both contracts. Primary Market Maker (“PMM”) Role A PMM will have the obligation to maintain two-way prices for both FTSE 100 Dividend Index Contract – RDSA Withholding (Contract code XZ) and the FTSE 100 Declared Dividend Index Contract (Contract code YZ) with: - a maximum spread of 3 Index Points in the first 3 December maturities and a minimum size for each maturity set at 100 lots; - a maximum spread for the following 4 December maturities of 6 Index Points with a size obligation for each maturity set at 50 lots. Fee Incentives The financial incentives for PMMs will comprise of a 50% reduction of the Exchange and Clearing fees as per the table below: View All Circulars / Subscribe / Media Inquiries ICE Futures Europe, a Recognised Investment Exchange under the Financial Services & Markets Act 2000 Registered in England & Wales with Registered Office at Milton Gate, 60 Chiswell Street, London, EC1Y 4SA Company Registration No. 1528617 Fees PMM Fees FTSE 100 Dividend Index futures* Exchange Clearing Exchange Clearing Screen Trades ICE Block Only - Published ICE Block Only - Non Published £0.08 £0.03 £0.04 £0.20 £0.25 £0.34 £0.04 £0.02 £0.02 £0.10 £0.12 £0.17 * Both FTSE 100 Declared Dividend Index Futures and FTSE 100 Dividend Index Futures RDSA Withholding The Exchange will apply per lot Exchange and Clearing fee reductions to all of the PMM’s proprietary business booked to the Market Making “M” accounts and executed on screen or via ICE Block. A PMM who has performed his market obligation for the relevant period during the trading day will pay an effective fee of £0.04 Exchange Fee and £0.10 Clearing Fee per lot and per side for Screen Trades instead of £0.08 and £0.20 respectively. Participation A Maximum of three PMMs will be selected by the Exchange on the basis of: - the quality of their previous market making experience and - the applicant’s ability to provide market making services. The Exchange’s decision with respect to the appointment of participants will be final. Furthermore, the Exchange reserves the right to suspend or withhold all or part payment of rebates and or fee credits. The Exchange requests Members and their customers with an interest in joining the PMM Programme, to contact the Exchange by emailing the Equity Derivatives department [email protected] or calling on +44 (0)20 7429 4635. Please ensure that the appropriate members of staff within your organisation and customers are advised of the content of this Circular. Signed: Patrick Davis Company Secretary FOR MORE INFORMATION, PLEASE CONTACT: Equity Derivatives +44 (0)20 7429 4635 [email protected] View All Circulars / Subscribe / Media Inquiries ICE Futures Europe, a Recognised Investment Exchange under the Financial Services & Markets Act 2000 Registered in England & Wales with Registered Office at Milton Gate, 60 Chiswell Street, London, EC1Y 4SA Company Registration No. 1528617