Securities finance transformation: key findings

How and where does the securities finance operating model need to transform?

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Content Types

Key findings

Topics

DLT and digital assets Clearing and collateral

Region

Global

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Securities finance operating models remain constrained by manual processing, fragmented collateral and rising regulatory overheads. With 59% of firms reporting meaningful operational challenges and collateral spread across 11 locations on average, these key findings show where change is becoming most urgent.

Operational pressure widespread

Operations

A significant share of respondents say manual processing is a serious problem and the burden is rising with volume and complexity.

Operational pressure is becoming a structural constraint on efficiency and scalability across the lifecycle.

Collateral spread wide

Complexity

A substantial share is still managed bilaterally, adding complexity and reducing the ability to mobilise collateral efficiently.

Securities lending drives the largest share of collateral obligations, concentrating complexity in one part of the lifecycle.

DLT engagement grows

Innovation

Stronger data models and the elimination of reconciliations are seen as the main drivers of future efficiency.

Standardisation and DLT are increasingly seen as complementary levers for stronger operating models.

Securities finance is facing growing pressure to modernise. Manual processing, data burdens and fragmented collateral management are making it harder for firms to build efficient, scalable and resilient operating models.

Where are the biggest weaknesses in today's securities finance model? How much cost and complexity are firms still carrying through manual workflows, collateral fragmentation and inconsistent standards, and what role could DLT play in addressing them?

The findings draw on input from agent lenders, brokers and banks across profiles and geographies, providing a practical view of where firms see the strongest case for change in securities finance today.

The research, produced in partnership with International Securities Lending Association (ISLA), Canadian Securities Lending Association (CASLA), Clifford Chance, HQLAˣ and Pan Asia Securities Lending Association (PASLA), highlights:

59% report operational challenges: firms continue to face meaningful operational pressure, while 36% say manual processing is a serious problem

Collateral is maintained across 11 locations on average, with 41% of obligations driven by securities lending activity

39% remains bilateral: a large share of collateral is still managed on a bilateral basis, adding complexity and reducing efficiency

56% of firms are engaged on Distributed Ledger Technology (DLT) today

Standardisation remains central: firms see stronger data models and the elimination of reconciliations as important drivers of future efficiency and profit and loss (P&L) improvement

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