SLB Registration

Any Member intending to engage in SLB activity must first apply for approval from the Dubai Clear before commencing SLB activity. Below are all types of registration required;

1. Registration of Lending Agent by Dubai Clear:

• Lending Agent means an approved member by the Dubai Clear to engage in the business of lending securities for a Lender in the UAE.
• Applicable to Clearing Members intending to become Lending Agent.
• Not applicable to a Clearing Member who performs the role of a Lending Representative of the Lender in order to create loan transactions
• Not applicable to Lenders.

2. Registration of Lender:

• Lender means any investor holding a NIN and who is willing to lend securities in accordance with the SLB Rules and procedures.
• An investor intending to lend securities must register with Dubai Clear as a Lender. This is a once-off process by the investor going through a Lending Representative or a Lending Agent if the Lender uses a Member for lending.

3. Registration of Borrower:

• Borrower means an investor who has a NIN and who is borrowing securities from a Lender in accordance with the SLB rules and procedures, and:
• is a Qualified Investor who borrows securities from a Lender; or
• is Member borrowing securities for itself or for its investor clients.
• A Borrower who is not a Member will have to complete the Borrower registration request as per the approved template. This is also a once-off process and the completed request shall be submitted by the Borrowing Representative to the Clearing Entity.

4. Annual Renewal of Lending/Borrowing Agent:

• On January every year, all registered Lending Agents and Borrowers should update their SLB License with Dubai Clear; Failure to do so; may result in the termination of outstanding loans.

1. Registration of Lending Agent by Dubai Clear:

• Settlement Agent or Trading Clearing Member  to submit the request
• Dubai Clear will ensure that the application form is properly completed.
• Dubai Clear will issue an official reply letter to the Lending Agent to confirm that the application has been approved.
• Update the website list of Lending Agents.
• In case the application is rejected Dubai Clear will reply to the applicant stating the reasons.

2. Registration of Lender:

• Lender to submit the request either from the Lending Agent who has already been registered with Dubai Clear or from the Lending Representative.
• Dubai Clear will check the following:
  • The NIN details furnished by the Lender in the registration request are correct; and
  • the Lender’s account is with the Lending Agent/LR; and
  • the appointment of Lending Agent/LR section is properly completed.
• If the Lender is a custodian client, the Lending Agent/ Lending Representative appointed by the Lender must be the lender’s custodian and cannot be a TCM.
• Once approved, Dubai Clear will inform the Lending Agent/ Lending Representative to confirm that registration of lender is successfully completed.

3. Registration of Borrower:

• Borrower or the Borrowing Representative to submit the once-off registration request to Dubai Clear.
• Dubai Clear will ensure that all details of the request are completed correctly and the appointment of Borrowing Agent/Borrowing Representative section properly completed.
• Borrower to submit a copy of the SLB master agreement from the Borrower as per international format of SLB Master Agreement and ensure the following:

• Name of the borrower is the same as in the Borrower registration form.
• Name of Lender in agreement is a Lender already registered with Dubai Clear.
• A collateral clause giving the Lender full rights to deal with the collateral.
• Right for Lender to recall securities at any time.
• Upon approval, Dubai Clear issues a notification letter to the Borrowing Agent/ Borrowing Representative to confirm that registration of Borrower is completed together with details of the designated SLB account opened by Dubai Clear for the Borrower.

4. Annual Renewal of Lending/Borrowing Agent

• All Dubai Clear Members licensed as Lending Agents/Borrowers must ensure that the SLB license is renewed annually.
• Failure to do so may result in the termination of outstanding loans.
• Dubai Clear will update the list of Lending/Borrower on website for non-renewal of licenses by existing members.

1. Registration of Lending Agent by Dubai Clear:
Settlement Agent or Trading Clearing Member to complete the following:

• Lending Agent/Borrower Application
• Statement of Compliance with Requirement Imposed by the Clearing Entity on Securities Lending and Borrowing (SLB) Activities
• Authority to Engage in New Business of Securities Lending and Borrowing (SLB) Activities

2. Registration of Lender:

• Receive the Lender Registration Application  from the Lending Agent who has already been registered with Dubai Clear.

3. Registration of Borrower:

• Receive the Borrower Registration Application from the Borrowing Representative or from the Dubai Clear Member.
• SLB master agreement from the Borrower as per sample format of international SLB Master Agreements.

4. Annual Renewal of Lending/Borrowing Agent

• Application Template for Renewal of Approval as Lending Agent and/or Borrower for Securities Lending and Borrowing.

Through Email: clearingandsettlement@dubaiclear.ae