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Collateral in the spotlight

Insights: PostTrade 360° 2025, Stockholm

Automation defines the future of post-trade operations

At this year’s PostTrade 360° 2025 conference in Stockholm, one theme cut across almost every track: collateral.

From the accelerating move to T+1 settlement, to intraday liquidity pressures, to repo and clearing mandates, collateral sits at the heart of how the industry is reshaping itself. Effective collateral management - and increasingly, its automation - will define both operational resilience and competitive edge in the years ahead.

Collateral under pressure


The shift to T+1 settlement is a major catalyst. Sessions such as “T+1 impacts through the trade journey” highlighted the operational compression firms now face.


With shorter cycles, collateral must be identified, mobilised and optimised within hours rather than days. Manual workarounds simply won’t scale.


Liquidity is another recurring theme. Discussions on “Stepping up intraday liquidity” and “Funding and inventory” revealed just how critical it is to have the right collateral in the right place at the right time. Without automation, firms risk bottlenecks:


  • Collateral trapped in the wrong market
  • Mismatched eligibility rules
  • Delays in substitution.

Each risk can quickly translate into funding stress.

Beyond traditional assets

The agenda also signalled a broadening definition of collateral.

Sessions like “The future of collateral management” and those exploring the ECB’s DLT trials suggested tokenised assets, digital cash and other alternative instruments will gradually expand collateral pools.

However, this diversification is only workable when supported by automated workflows capable of managing multiple asset classes in real-time.

Repo, clearing and harmonisation

Collateral efficiency is just as critical in repo markets as in derivatives. Key trends include:

  • Broader collateral availability
  • Regulatory-driven central clearing
  • A strong push toward automation.

I explored these themes with peers in the session “The promise and practicalities of today’s repo activity”. A central takeaway was repo’s dual role: both a funding tool and a cornerstone of collateral transformation.

The expansion of central clearing, discussed across both repo and CCP risk management tracks, introduces new layers of margin and reporting obligations. Once again, automation stood out as the only sustainable way to reduce operational drag.

Looking ahead, these dynamics will reshape pricing strategies. Market participants will need to stay agile, leveraging modern technology while navigating regulatory complexity and wider macroeconomic shifts.

Automation is the answer


Across these sessions, one message was clear: automation is not optional. Advanced collateral management systems can:


  • Optimise allocation in real time, ensuring the cheapest-to-deliver asset is used while preserving high-quality collateral for where it's most needed
  • Enable straight-through processing of margin calls, substitutions and eligibility checks, cutting down on manual interventions which slow the process
  • Integrate liquidity management so that funding, repo and securities lending are linked directly with collateral availability
  • Support digital assets by connecting to tokenisation platforms and DLT-based settlement infrastructure.

Looking ahead

Collateral has always been a safeguard. Today, it’s also a strategic resource, determining how smoothly firms navigate regulatory change, market volatility and technological disruption.

The PostTrade 360° 2025 agenda made it clear: automation is no longer just about efficiency; it’s a fundamental requirement in a market which moves faster every day.

Firms who invest now in automated collateral management platforms, like CloudMargin, will meet the demands of T+1, repo clearing and harmonised standards, whilst unlocking competitive advantages in cost, liquidity and client service.

Collateral is in the spotlight. Automation is the path forward.

David Ogier
VP Sales EMEA

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