XCube Unveils UAE's Premier Automated SLB Platform For Retail Investors

In a significant move for the UAE's financial sector, xCube, a Dubai-based market-making and brokerage platform, has introduced a fully Automated Securities Lending and Borrowing (SLB) service for retail investors. This innovation marks the first instance of such a service in the UAE, aimed at enhancing and streamlining trading on the Dubai Financial Market (DFM). Through the xCube application, investors can now manage all aspects of the SLB process without the need to engage a broker, offering a more efficient and user-friendly experience.

Securities Lending and Borrowing is a practice well-established in global financial markets, allowing investors to lend their securities to others in exchange for a fee. This facilitates access to securities for various purposes, including short selling and hedging. xCube's automation of this process promises faster transactions and greater control for clients, with all fees transparently displayed within the app.

The introduction of automated SLB by xCube is set to make accessing SLB simpler, faster, more secure, and more affordable, thereby contributing to a more efficient trading experience on the DFM. This move complements xCube's other services like swift subscriptions to IPOs and is aligned with its mission to support the long-term health of capital markets by empowering investors.

Hamed Ali, CEO of Dubai Financial Market, highlighted the significance of automated SLB for DFM. He stated that this innovation is crucial for enhancing market accessibility and improving the efficiency and effectiveness of transactions for both lenders and borrowers. Ali views automated SLB as a significant step towards accelerating the development of UAE capital markets and reinforcing Dubai's status as a global financial hub.

Saad Chalabi, CEO of xCube, emphasized the transformative impact of automated SLB on DFM. According to Chalabi, this service enables retail investors to lend their securities effortlessly while maintaining instant access should they wish to sell. Borrowers benefit from one-click short selling and a flexible margin framework, facilitating strategic trading approaches. Chalabi also noted that automated SLB would foster an anonymous, diversified pool of lenders essential for engaging borrowers and facilitating short selling.

Furthermore, Chalabi pointed out that by providing essential hedging mechanisms, xCube is enhancing local derivatives markets. This aligns DFM with developed market peers and supports the evolution of derivatives and structured products in the UAE. The launch of fully automated services by xCube represents a significant milestone for the UAE's financial landscape and underscores xCube's pioneering role in the regional securities industry.

With inputs from WAM