Securities Finance Key to Scaling UAE Capital Markets, Industry Panellists Say

At the Securities Finance Symposium held in Dubai, financial market executives discussed how securities finance underpins liquidity, collateral management, hedging, and capital markets growth across the UAE. The panel was moderated by Roy Zimmerhansl, head of capital markets at WTS Hansuke, who noted that securities finance serves as critical market infrastructure supporting market making, investing, derivatives trading, and exchange-traded funds, drawing parallels to European preparations for T+1 settlement.

Nina Datta, director of prime sales and institutional sales at HSBC, stated that demand for UAE securities finance has evolved significantly as investors implement sophisticated trading strategies. Datta noted that activity is increasingly driven by relative value strategies, index rebalancing, and delta one trading rather than purely directional short selling. She added that foreign investors represent a significant proportion of trading activity on the Abu Dhabi Securities Exchange, generating ongoing demand for financing and inventory.

Charlie Badran, head of AXA financing at BNP Paribas Asset Management, highlighted the role of repo and financing transactions in balance sheet management, duration gap adjustments, and collateral management. Badran reported that financing markets have demonstrated resilience through previous crises, including the global financial crisis, the European sovereign debt crisis, and the COVID-19 pandemic, and pointed to electronic trading, connectivity, and standardised market conventions as key priorities.

Addressing operational requirements, Darren Crowther, head of Securities Finance and Collateral Management Solutions at Broadridge, argued that technology investment remains a decisive factor for firms operating at scale. Crowther stated that straight-through processing (STP) and automation are necessary to move beyond simple trade structures to complex, repeatable transactions. Concluding the session, Datta stated that the regional focus must centre on ecosystem growth to turn market access into consistent execution.