HSBC executes the first international Securities Lending and Borrowing transaction on the DFM

HSBC executes the first international Securities Lending and Borrowing transaction on the DFM

Dubai: Dubai Financial Market (DFM) today announced that HSBC has successfully executed the first international Securities Lending and Borrowing (SLB) transaction on the exchange, the latest step in the continued evolution and expansion of Dubai’s capital markets. Providing end-to-end, over-the-counter, SLB transactions is a milestone development for DFM, enabling investors to more effectively hedge portfolios or take new positions to derive additional opportunities on traded securities. SLB is part of the critical infrastructure facilitating the regulated short selling of securities and which also allows asset owners and managers to enhance the yield of their long-term holdings by lending out their securities to borrowers for an annualized fee, while retaining their rights of holding the securities. HSBC facilitated the transaction as custodian, acting as the lending representative for a large asset owner and a borrowing representative as well. HSBC was also lending agent and, separately, prime broker, borrowing DFM-listed equities from the asset owner which global institutional investors could then use to access the DFM. Hamed Ali, CEO of DFM and Nasdaq Dubai said: "I would like to express my appreciation to the team at HSBC who worked tirelessly to successfully execute the first international SLB transaction on DFM through Dubai