Securities Financing

Abu Dhabi Depository Securities Financing Services

Securities Financing is a fundamental mechanism that supports market liquidity, efficient price discovery, and enhanced portfolio performance.

As the licensed central securities depository, regulated by the Securities and Commodities Authority (SCA), AD CSD provides a secure, transparent, and fully compliant post-trade infrastructure for executing Securities Financing Transactions (SFTs).

Our platform enables the reliable processing of Securities Lending and Borrowing (SLB) and Repurchase Agreements (Repo) in line with international best practices, offering real-time electronic settlement, risk controls, and robust regulatory oversight.

AD CSD’s electronic book-entry system ensures that all transactions are processed with accuracy, transparency, and seamless integration across the market ecosystem.

Key Pillars of Securities Financing at AD CSD

Our Securities Financing services are built upon robust mechanisms designed to meet the diverse needs of market participants including:

Securities Lending and Borrowing (SLB)

Securities Lending and Borrowing (SLB) is a fundamental financial transaction where securities are transferred from a Lender to a Borrower in exchange for eligible collateral and a lending fee.

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Repurchase Agreements (Repos)

Repurchase Agreements (Repos) are short-term borrowing mechanism.
In a repo transaction, a repo seller sells securities to repo buyer, and buys them back at agreed price and date. This mechanism is vital for short-term liquidity management and collateral transformation.

Who Can Participate

AD CSD’s Securities Financing services are designed to support a broad spectrum of authorized market participants across the financial ecosystem. Eligible entities include:

  • Custodians – Institutions responsible for safeguarding securities on behalf of clients and facilitating related transactions.
  • Brokerage Firms – Licensed brokers executing trades and managing investor portfolios within the local market.
  • Market Makers – Entities that enhance market liquidity by continuously quoting buy and sell prices.
  • Local Banks and Branches of Foreign Banks – Banks operating in the UAE that provide financing, trading, and settlement services.
  • Foreign Companies Licensed as SLB Agents – International firms approved to conduct Securities Lending and Borrowing activities within the UAE market.
  • Licensed Financial Institutions – Any additional financial entities authorized to participate in securities financing activities under AD CSD and regulatory guidelines.

This broad eligibility ensures participation from a diverse range of market players, supporting liquidity, market depth, and efficient securities financing operations.

Why Choose AD CSD?

  • Licensed and trusted infrastructure under SCA oversight
  • Real-time, electronic book-entry platform
  • Seamless connectivity with market intermediaries and ADX
  • Full alignment with UAE and international regulatory standards
  • Transparent operations that support market integrity
  • Scalable infrastructure designed to enable future enhancements such as collateral management and expanded SFT services

By providing a secure, transparent, and regulated environment for Securities Financing Transactions—including SLB and Repo—AD CSD strengthens market liquidity, supports institutional innovation, and contributes to the sustainable growth of the UAE capital markets.