xCube - Securities Lending and Borrowing (SLB) | Flexible Trading
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What is Securities Lending and Borrowing (SLB)?

SLB is a smarter way to put your stocks to work. Investors can lend the shares they hold and earn passive monthly income, while others can borrow those same shares to pursue strategies like short selling, arbitrage, or hedging. The lender keeps full ownership rights, while the borrower gains access to new opportunities. It’s a seamless system that deepens market liquidity and creates value for both sides of the trade. Over time, SLB helps build a more active and efficient market for everyone.

Benefits for Lenders

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Benefits for Lenders

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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.

Why SLB Matters Globally?

SLB plays a critical role in deepening markets, increasing liquidity, and enabling both bullish and bearish strategies. Major exchanges like NYSE, NASDAQ, LSE, and TSE all rely on it—and now, xCube brings these global standards to UAE retail stock markets, including DFM and ADX

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

Contact us on
600 59 2823
support@xcube.ae