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Securities Lending & Borrowing (SLB)

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The terms "SBL" or "SLB", or "Securities Lending" refer to a temporary loan of securities by a lender or borrower where the:

  1. Lender may recall securities at any time, allowing shares to be returned within the normal market settlement cycle notwithstanding an agreed maturity date.

  2. Borrower may return securities at any time.

Ownership over the lent securities passes from lender to borrower. The borrower has certain rights, for example the right to sell or lend to another borrower, attend AGMs. The borrower is entitled to economic benefits for example dividends, but the SLB agreement with the lender will oblige the borrower to make [“manufacture”] equivalent payments back to the lender. A lender of securities no longer owns them and has no entitlement to vote. Lenders reserve the right to recall securities from the borrower and must exercise this option if they wish to vote.


Benefits of SLB

  • It promotes market efficiency and liquidity and reduces market volatility by reducing bid/offer spread and increasing bid/offer depth.

  • SLB allows price discovery and the arbitrage of pricing inefficiencies.

  • SLB also supports the development of the capital markets by facilitating various investment strategies, use for fail coverage to ensure smooth settlement cycles and provides a lender incremental return to a portfolio.

DFM Borrowing and Lending Agent for the year 2022:

#

Brokerage Firm/Custodian Name

Primary Contact Details

Secondary Contact Details

 1 Al Ramz Capital LLCMr. Mazen Zaghmot
Job title: Vice President, Operations Manager, Finance & Operations
Tel #: 02 6118853
Mobile #: 050 7913636
Fax #: 02 26262444
Email: mazen@alramz.ae
Mr. Imad Hilal
Job title: Assistant Manager, Finance
Tel #:02 6118880
Mobile #: 050 3848130
Fax #: 02 26262444
Email: imad@alramz.ae 
2 BHM Capital Financial Services PrJSC
Mr. Shaher Hasan
Job title: Head of Compliance, Risk & Audit
Tel #: 04 5247404
Mobile #: 054 5558448
Fax #: 04 5247555
Email: shaher@bhmuae.ae
Mr. Sherif Zohdy
Job title: Head of Operations & Finance 
Tel #: 04 5247408
Mobile #: 056 6966211
Fax #: 04 5247555
Email: sherif@bhmuae.ae
 3First Abu Dhabi Bank PJSC / Custodian
Mr. Ahmad Naseer
Job title: Executive Director

Tel #:02 3053932
Mobile #:056 9925436
Email: Ahmad.Naseer@bankfab.com
Mr. Khaled Khadr
Job title: Executive Director

Tel #: 02 305 3930
Mobile #: 050 4514998
Email: khaled.khadr@bankfab.com
 4 Xcube LLCMs. Asma Khaled
Job title: Risk & Compliance Manager

Tel #:04 3055327
Mobile #: 0553529117
Email: akhaled@Xcube.ae
Mr. Saad Chalabi
Job title: General Manager
Tel #: 04 3055242
Mobile #: 0507129845
Email: schalabi@Xcube.ae

 

For information on the SLB General Procedures and SLB Rulesplease refer to the ‘Regulations, Policies and Procedures’ section.