Dubai – Mubasher: Dubai Financial Market (DFM) has officially launched its Centralized Securities Lending and Borrowing (SLB) Program on the final day of Capital Market Summit 2025, which lasted for two days in the UAE.
The program is a strategic market infrastructure initiative aimed at enhancing market liquidity, supporting price discovery, and broadening investor participation in Dubai’s capital market, according to a press release.
It is operated by Dubai Clear, DFM’s wholly owned subsidiary, which serves as the central counterparty (CCP) for all such SLB transactions.
The SLB program introduces a centralized, transparent and fully regulated framework for the loan and borrowing of eligible securities, in line with Dubai Clear’s SLB rules and aligned with international best practices for risk management and governance.
The CEO of DFM and Nasdaq Dubai, Hamed Ali, said: “By 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.”
Ali added: “This 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.”
DFM’s recent program 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.
Furthermore, loan transactions are executed through a centralized matching mechanism and settled with the CCP, ensuring full anonymity between counterparties.
The SLB Program features comprehensive risk management protocols, including margining requirements, collateral management, all underpinned by Dubai Clear’s capabilities as a CCP. These safeguards significantly reduce counterparty and operational risks for all participants.
The introduction of the Centralized SLB Program underscores DFM’s commitment to innovation, investor protection, and long-term market growth.
Earlier on the sidelines of the summit, DFM collaborated with Taiwan’s stock market and unveiled new features on its iVestor app.
