Friday, 16 April 2021 12:39 GMT

NBAD becomes the first Securities Lending and Borrowing Agent


(MENAFN - Khaleej Times)National Bank of Abu Dhabi NBAD has become the first bank to operate as a Securities Lending and Borrowing Agent for the UAE market after it was granted approval by Securities and Commodities Authority SCA.

This achievement illustrates NBAD's leadership position in the market. In addition to being currently the only SCA-licensed Securities Lending and Borrowing Agent NBAD is the UAE's first licensed custodian bank and first and only official market maker since April 2014.

Jonathan Titone Executive Director - Head of Product Development of Global Wealth at NBAD said "The combination of these capabilities will allow NBAD to offer its institutional clients a distinctive opportunity to earn incremental revenue on share positions which would have otherwise remained dormant and likely add liquidity and efficiency to the market. This sets up another milestone in our strategy to build the best Arab Bank in the world."

For clients choosing to participate in the programme securities lending and borrowing transactions facilitate the temporarily transfer of the title of their securities to NBAD as a borrower for use in market making activities. Collateral will be posted to the lender and lenders will earn revenue from use of their shares. As the borrower NBAD is obliged to return the securities to the lender at a later agreed date or on demand.


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