xCube Unveils UAE’s First Fully Automated SLB Service for Retail Investors

xCube, a prominent Dubai-based market making and brokerage platform, has unveiled a groundbreaking offering: fully Automated Securities Lending and Borrowing (SLB) for retail investors, marking a pioneering move in the UAE’s financial landscape.

The innovative solution introduced by xCube aims to revolutionize trading activities on the Dubai Financial Market (DFM) by empowering users to seamlessly manage the entire Securities Lending and Borrowing (SLB) process directly through the intuitive xCube application. By eliminating the need for intermediary brokers, this streamlined approach enhances efficiency, transparency, and accessibility for retail investors, ultimately contributing to a more dynamic and accessible trading environment on the DFM.

Automated SLB is a well-established practice in global financial markets, allowing investors to lend their securities holdings to others in exchange for a fee. By automating this process, xCube facilitates faster, more efficient transactions, providing clients with unprecedented control and transparency. Moreover, all associated fees are displayed within the app, ensuring a seamless and user-friendly experience.

xCube’s introduction of Automated Securities Lending and Borrowing (SLB) not only demonstrates its dedication to nurturing the long-term health and efficiency of capital markets in the UAE but also signifies its commitment to empowering investors. By simplifying access to SLB and offering additional services like swift IPO subscriptions, xCube aims to streamline the trading process, empower investors, and ultimately enhance market efficiency on the Dubai Financial Market (DFM).

Hamed Ali, CEO of Dubai Financial Market, lauded the introduction of Automated SLB as a pivotal step towards enhancing market accessibility and efficiency. He emphasized the significant benefits of automated services for both lenders and borrowers, highlighting the importance of accelerating the development of UAE capital markets.

Saad Chalabi, CEO of xCube, emphasized the transformative impact of Automated SLB on investor portfolios. He noted that the service provides retail investors with lucrative opportunities to earn additional revenue from their securities holdings while maintaining instant access to their stocks. Borrowers, including hedgers and other market participants, benefit from convenient access to specific securities for strategic trading approaches.

Automated Securities Lending and Borrowing (SLB) offers numerous benefits to participants in the financial markets. For lenders, it provides an additional avenue for generating revenue, streamlines the lending process, and offers the flexibility to sell securities at any time. On the other hand, borrowers benefit from features such as one-click short selling and a flexible margin framework, enabling them to implement strategic trading approaches seamlessly.

Saad Chalabi highlighted the pivotal role of automated SLB in establishing a diverse pool of lenders, which is essential for facilitating short selling and enhancing the local derivatives markets. By providing crucial hedging mechanisms, automated SLB not only fosters a more equitable financial landscape but also supports the evolution of derivatives and structured products in the UAE. This innovation underscores xCube’s position as a pioneer in the regional securities industry and marks a significant milestone for the UAE’s financial markets.

xCube’s commitment to innovation and transparency positions it as a trailblazer in the regional securities industry, shaping the future of finance in the Middle East. Through its cutting-edge financial services and user-friendly platforms, xCube aims to redefine the investment landscape and empower investors across the region.