The terms "SBL" or "SLB", or "Securities Lending" refer to a temporary loan of securities by a lender or borrower where the:

1. Lender may recall securities at any time, allowing shares to be returned within the normal market settlement cycle notwithstanding an agreed maturity date.

2. Borrower may return securities at any time.

Ownership over the lent securities passes from lender to borrower. The borrower has certain rights, for example the right to sell or lend to another borrower, attend AGMs. The borrower is entitled to economic benefits for example dividends, but the SLB agreement with the lender will oblige the borrower to make [“manufacture”] equivalent payments back to the lender. A lender of securities no longer owns them and has no entitlement to vote. Lenders reserve the right to recall securities from the borrower and must exercise this option if they wish to vote.

Benefits of SLB

• It promotes market efficiency and liquidity and reduces market volatility by reducing bid/offer spread and increasing bid/offer depth.

• SLB allows price discovery and the arbitrage of pricing inefficiencies.

• SLB also supports the development of the capital markets by facilitating various investment strategies, use for fail coverage to ensure smooth settlement cycles and provides a lender incremental return to a portfolio.

DFM Borrowing and Lending Agents:

The following members are licensed to facilitate Securities Lending and Borrowing (SLB):

For information on the SLB General Procedures and SLB Rules, please refer to the ‘Regulations, Policies and Procedures’ section.