Document background
The Securities Lending Agreement is a crucial document used in UAE financial markets to facilitate the temporary transfer of securities between financial institutions. This agreement is essential for market making, settlement coverage, and enhanced portfolio returns, while ensuring compliance with UAE regulatory requirements, particularly those set by the Securities and Commodities Authority (SCA) and the Central Bank of UAE. The document addresses key aspects including loan terms, collateral requirements, rights and obligations of parties, default procedures, and regulatory compliance. It is particularly relevant for institutions operating in UAE financial markets, including conventional and Islamic financial institutions, and must incorporate specific provisions required by UAE law while aligning with international securities lending practices.
