Dubai Financial Market launches centralised SLB programme
08 May 2025 Dubai
Image: boule1301/stock.adobe.com
Dubai Financial Market (DFM) has welcomed the official launch of its Centralized Securities Lending and Borrowing (SLB) Program.
The market infrastructure initiative aims to enhance market liquidity, supporting price discovery, and broadening investor participation in Dubai鈥檚 capital market.
The SLB Program is operated by Dubai Clear, DFM鈥檚 wholly-owned subsidiary, which serves as the central counterparty (CCP) for all such SLB transactions.
The programme introduces a centralised, transparent and fully regulated framework for the loan and borrowing of eligible securities, says DFM, in line with Dubai Clear鈥檚 SLB rules and aligned with international best practices for risk management and governance.
Hamed Ali, CEO of DFM and Nasdaq Dubai, says: 鈥淏y introducing a robust and transparent SLB framework, DFM is addressing a critical component of market development, enabling institutional, and soon retail investors, to engage in securities lending and borrowing within a secure and regulated environment.
鈥淭his initiative is part of our broader strategy to deepen market liquidity, strengthen market infrastructure, and support the growth of a sustainable and diversified investor base in line with global best practices.鈥�
According to the DFM, the programme allows long term investors to make eligible securities available for borrowing while borrowers, including hedge funds and market makers, can access these securities to implement trading and liquidity enhancement strategies.
Loan transactions are executed through a centralised matching mechanism and settled with the CCP, ensuring full anonymity between counterparties.
The programme features risk management protocols, including margining requirements, collateral management, all underpinned by Dubai Clear鈥檚 capabilities as a CCP. These safeguards aim to significantly reduce counterparty and operational risks for all participants.
The market infrastructure initiative aims to enhance market liquidity, supporting price discovery, and broadening investor participation in Dubai鈥檚 capital market.
The SLB Program is operated by Dubai Clear, DFM鈥檚 wholly-owned subsidiary, which serves as the central counterparty (CCP) for all such SLB transactions.
The programme introduces a centralised, transparent and fully regulated framework for the loan and borrowing of eligible securities, says DFM, in line with Dubai Clear鈥檚 SLB rules and aligned with international best practices for risk management and governance.
Hamed Ali, CEO of DFM and Nasdaq Dubai, says: 鈥淏y introducing a robust and transparent SLB framework, DFM is addressing a critical component of market development, enabling institutional, and soon retail investors, to engage in securities lending and borrowing within a secure and regulated environment.
鈥淭his initiative is part of our broader strategy to deepen market liquidity, strengthen market infrastructure, and support the growth of a sustainable and diversified investor base in line with global best practices.鈥�
According to the DFM, the programme allows long term investors to make eligible securities available for borrowing while borrowers, including hedge funds and market makers, can access these securities to implement trading and liquidity enhancement strategies.
Loan transactions are executed through a centralised matching mechanism and settled with the CCP, ensuring full anonymity between counterparties.
The programme features risk management protocols, including margining requirements, collateral management, all underpinned by Dubai Clear鈥檚 capabilities as a CCP. These safeguards aim to significantly reduce counterparty and operational risks for all participants.
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