The terms "SBL" or "SLB", or "Securities Lending" refer to a temporary loan of securities by a lender or borrower where the:
Lender may recall securities at any time, allowing shares to be returned within the normal market settlement cycle notwithstanding an agreed maturity date.
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 2023:
# | Brokerage Firm/Custodian Name | Primary Contact Details | Secondary Contact Details |
|---|
| 1 | Al Ramz Capital LLC | Mr. 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
|
| 3 | First 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 LLC | Ms. Reema Kunhimangalam
Job title: Compliance Specialist
Tel #:043055327
Mobile #: 0566321430
Email: rkunhimangalam@Xcube.ae | Mr. Mohamad Ibrahim
Job title: VP Of Operations
Tel #: 043055250
Mobile #: 0504249428
Email: mohamad.ibrahim@xcube.ae |
Existing Loan Records:
| Loan Date | Symbol | Quantity |
| 16/02/2024 | AJMANBANK | 19,000,000 |
| 21/02/2024 | AJMANBANK | 1,000,000
|
For information on the SLB General Procedures and SLB Rules, please refer to the ‘Regulations, Policies and Procedures’ section.