What is Securities Lending and Borrowing (SLB)?
Benefits for Lenders
Earn Passive Income
Get monthly payments directly into your account.
Automatic Activation
Lending kicks in once your margin account is live.
Full Control
Sell your stocks at any time even while they’re on loan.
Benefits for Borrowers
Unlock Full Market Power
Short sell across ADX and DFM with a single platform.
Streamlined Process
Initiate short selling directly, xCube handles the rest.
Strategic Advantage
Use borrowed stocks to hedge, trade, or arbitrage
How does it work?
For Lenders: Your eligible securities in a margin account are automatically made available for lending. You keep all ownership rights and receive a monthly payment if your stocks are lent.
For Borrowers: Place a short-selling order. xCube checks availability, matches you with a lender, and facilitates the transaction. Borrowing fees apply daily; lending income is paid monthly.
Frequently Asked Questions
SLB stands for Security Lending and Borrowing, a well-established practice in global financial markets where investors lend their securities holdings to others in return for a fee.
It enables short sellers and other market participants to access securities for various purposes.
The benefits for lenders include additional income, retention of all the main benefits of ownership, automated convenience, and the ability to sell the security anytime.
Borrowers gain expanded access to a wide array of stocks and securities for various purposes, such as short selling and hedging, with a streamlined process, and seamless integration for easy portfolio and risk management.
No, you can’t choose to only make certain stocks/ETFs available for lending. When you activate your margin account, all eligible stocks/ETFs in your account become available for lending.
Automatically when you upgrade your account to a margin account, you activate the stock lending feature. You can opt to unsubscribe by sending an email to support@xcube.ae
