Dubai Financial Market Launches Centralized Securities Lending and Borrowing Program

- Dubai Financial Market Launches Centralized Securities Lending and Borrowing (SLB) Program to Enhance Market Liquidity and Investor Access

Dubai Financial Market (DFM) today announced the official launch of its Centralized Securities Lending and Borrowing (SLB) Program, a strategic market infrastructure initiative aimed at enhancing market liquidity, supporting price discovery, and broadening investor participation in Dubai’s capital market.

The SLB Program is operated by Dubai Clear, DFM’s wholly owned subsidiary, which serves as the central counterparty (CCP) for all such SLB transactions. The 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.

‘’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,” said Hamed Ali, CEO of DFM and Nasdaq Dubai, adding, ‘’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.”

The 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. 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.

This initiative was unveiled during the 2025 Capital Market Summit, DFM’s flagship event bringing together global and regional leaders to shape the future of financial markets. The introduction of the Centralized SLB Program underscores DFM’s commitment to innovation, investor protection, and long-term market growth.