The securities finance landscape is evolving fast, with firms facing a perfect storm of regulatory, technological, and market-driven changes. As tokenisation, T+1 settlement, and Uncleared Margin Rules (UMR) reshape market structure, the pressure to optimise collateral and liquidity has never been greater.
🔑 Key Trends Shaping 2025
📌 Tokenisation & Digital Assets – The rise of digital collateral solutions is changing how assets are mobilised. But will tokenisation truly improve collateral velocity, or are operational challenges holding it back?
📌 T+1 Settlement – The move to shorter settlement cycles is increasing liquidity pressures. Will repo and securities lending markets need to adjust to prevent funding mismatches?
📌 UMR & Regulatory Complexity – Initial margin requirements continue to tighten, leading to higher collateral demands. Are firms optimising their margin strategies, or just absorbing rising costs?
📌 Clearing & Market Fragmentation – With the CME seeking entry into US Treasury clearing, how will competition between CCPs affect repo markets and collateral flows?
📌 Liquidity Challenges – As regulatory capital pressures increase, are firms fully leveraging term repo, CCP-cleared trades, and new funding structures to enhance liquidity?
🚀 What’s Next?
The drive for greater collateral efficiency is clear, but is the market moving fast enough? Firms that proactively optimise their funding strategies will have a competitive edge, while those that lag behind may face rising costs and reduced market access.
🔍 How SecFin Solutions Can Help
At SecFin Solutions, we work with firms to:
✅ Optimise collateral and funding strategies – Ensuring firms have the right balance of cleared vs bilateral, term vs overnight, and cash vs non-cash collateral.
✅ Assess the impact of T+1 settlement – Preparing funding desks to manage liquidity shifts and margin requirements.
✅ Navigate regulatory changes – Helping firms stay ahead of UMR, Basel rules, and evolving clearing mandates.
✅ Evaluate digital collateral solutions – Understanding the real-world impact of tokenisation and what it means for repo and securities finance.
⏳ The Time to Act is Now
With market and regulatory shifts accelerating, firms must adapt their securities finance strategies now to remain competitive.
💬 What’s your biggest challenge in collateral and liquidity management today? Let’s discuss.
📩 If your firm needs strategic insights, SecFin Solutions can help. Get in touch.
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At SecFin Solutions, Glenn Handley epitomises expertise and innovation in global finance and management consulting.
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