Dubai Financial Market (DFM) has launched its Centralized Securities Lending and Borrowing (SLB) Program at the 2025 Capital Market Summit, its flagship event that gathered top international and regional leaders to shape the future of financial markets.
SLB Program is designed to enhance market liquidity, support price discovery, and expand investor participation in Dubai’s capital market. This move highlights DFM’s commitment to driving innovation, investor protection, and long-term market growth.
Operated by Dubai Clear, DFM’s wholly owned subsidiary, the initiative introduces a centralized, transparent and fully regulated framework for the loan and borrowing of eligible securities, aligning with Dubai Clear’s SLB rules and international best practices in 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. 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.”
Under this initiative, long term investors can 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 handled via a centralized matching mechanism and settled with the CCP. This ensures complete anonymity between counterparties.
Furthermore, the program features comprehensive risk management protocols, including margining requirements, collateral management, all underpinned by Dubai Clear’s capabilities as a CCP. These measures minimize counterparty and operational risks for all participants.
