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Securities Borrowing and Lending (SBL) is a service enabled through Edaa's systems to allow temporary transfer of securities between a lender and a borrower. SBL is an essential tool to allow market participants to manage their market activities and mitigate settlement risk.
The ownership of listed securities will be transferred temporarily from the lender to the borrower. Accordingly, ownership rights such as attending general assemblies, voting rights and economic benefits are transferred to the borrower. However, lenders can determine their rights in respect to the above through a tailored SBL agreement.
Who can participate
All listed securities are eligible for SBL activities except for tradable rights.
SBL offers lenders an additional investment channel in which they can lend long-term positions to maximize potential return. In addition, it allows borrowers to short securities and hedge their positions.
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