A new dawn
06 January 2026
As the securities finance industry welcomes 2026, Hansa Tote gathers insights from industry experts on what they expect from the upcoming year
Image: stock.adobe.com/vovik_mar
What do you anticipate will have the largest impact on the securities finance industry in 2026?
Africa is stepping into 2026 with strong tailwinds. South Africa’s recent credit ratings upgrade and the surge in investor confidence provide a solid foundation for growth, unlocking deeper liquidity and expanding counterparties in the securities lending space. Across the continent, momentum is building: Nigeria’s approval for pension funds to participate in lending introduces a vast pool of long-term capital; Kenya’s pending adoption of the Global Master Íø±¬³Ô¹Ï Lending Agreement (GMSLA) aligns its market with global standards; and Botswana’s implementation plans signal a commitment to modern infrastructure.
These developments echo global priorities — transparency, resilience, and digitisation — while positioning Africa as a region ready to leapfrog legacy barriers. With regulatory alignment, robust infrastructure, and new pools of capital, the continent is no longer on the sidelines; it’s becoming a central player in the global securities finance narrative. For investors seeking growth and innovation in 2026, Africa is the place to be.
Hitesh Harduth, Head of Íø±¬³Ô¹Ï Lending, Standard Bank Corporate and Investment Banking
In 2026 we expect that it will take the Federal Open Market Committee (FOMC) some time to analyse the recently released data, develop a policy consensus, and a subsequent cadence for policy decision action. Further progress on inflation and interest in supporting the labor market may result in a 25bp rate cut at the March meeting. This continued FOMC focus on extinguishing the last impulses keeping US inflation above two per cent likely gives the financial markets comfort; US Rates (duration), and risk assets (US Equities and Credit) may benefit thematically as a result. The incoming FOMC chair will likely take a balanced and measured pro-economic growth/lower rate policy posture.
2026 should witness continued US regulatory support and evolution towards policy structures that improve liquidity, transparency, and the resilience of the mission critical US Treasury cash and repurchase markets. This may come in the shape of continued progress towards central clearing and potentially broader access to facilities designed to help precipitate increased short-term financing market liquidity, when required. Perhaps we will also see further progress on enhanced supplementary leverage ratio (eSLR); unlocking liquidity and improving intermediation.
Andrew Lazar, Head of Sales, Buckler Íø±¬³Ô¹Ï
We anticipate that securities finance will continue evolving and expanding into new markets, trade structures, and trading venues throughout 2026. The ambitions for large participants in this sector have partially shifted from being primarily driven by cost discipline and ancillary income to prioritising liquidity management. This change in turn heightens resilience against market stress scenarios, and demand for high-quality liquid assets (HQLAs) continues to grow.
Adnan Hussain, Global Head of Agency Lending & Liquidity Services, HSBC
In 2026, institutional Digital Asset solutions will continue to move from promise to production. Over the last year, we have seen financial market infrastructures (FMIs) such as Clearstream, DTCC, and SIX accelerate the digital asset infrastructure they are building for collateral solutions and testing digital rails for collateral movements. At the same time, we are seeing Asia and Middle East markets advance their tokenisation frameworks bringing real-world assets into the digital space. The industry is laying the groundwork for what the Bank for International Settlements (BIS) and World Economic Forum (WEF) have long envisioned: real-time posting, reuse and reallocation of collateral across markets.
We see this shift across our footprint. In the Middle East and Asia, regulators and market operators are accelerating digital asset frameworks, while asset managers push for greater cross-border liquidity efficiency. With the tokenisation of funds and real-world assets now becoming commercially viable, the market is opening up infrastructure that could support intraday collateral mobility, programmable settlement and interoperable custodian models.
As the first global systemically important bank to offer institutional-grade digital asset custody, Standard Chartered is already seeing these ecosystems deepen. In 2026, we expect tokenised assets to move beyond isolated pilots and begin circulating within real collateral workflows — linking traditional finance with Web3-native platforms and enabling more capital-efficient financing across Asia.
Our prediction is clear: next year will mark the moment when digital asset rails start to meaningfully transform the collateral landscape. And, it will be the collaboration between FMIs, trusted banks, and emerging digital platforms that makes real-time collateral optimisation a reality.
Margaret Harwood-Jones, Global Head, Financing and Íø±¬³Ô¹Ï Services (FSS), Standard Chartered
Regulators across major markets are accelerating the need to modernise post-trade infrastructure, creating an unusual situation where the public sector is moving faster than many of the financial institutions it oversees. The shift is considerable, with central banks across the globe advancing stablecoin focused task forces (US, UK, and International) looking at digital ledger-based models. As we head into 2026, therefore, the direction of travel around FX settlement models is clear. The what is defined, but it’s the how and when that are yet to be realised on a larger scale. The focus next year needs to be on practical execution.
This year, the foundations have been built and regulatory momentum established. The risks of not embracing digital settlement now outweigh the short-term convenience of trying to maintain old systems that no longer align with market dynamics. As such, 2026 will be a decisive year in FX settlement and liquidity management, set to further widen the gap between early movers and late adopters.
Basu Choudhury, Head of Partnerships and Strategic Initiatives, OSTTRA
In 2026, we anticipate greater divergence in securities lending returns as borrowers refine sources to target low or zero-risk-weight exposures. The proliferation of capital transformation structures will amplify this trend — clients that adopt these structures will consistently outperform those that do not.
In the fixed income markets we see 2026 as a pivotal year for US Treasury clearing. Key compliance deadlines include cash trading by the end 2026 and repo by 30 June 2027. To meet these requirements, clients and counterparties will accelerate onboarding of new sponsors and access models. Expect continued growth in Sponsored repo as well as the adoption of new FICC access models, including Agent Clearing and Collateral-in-Lieu services.
Clients that meet compliance standards by strategically sourcing balance sheet needs across the sell side will be well-positioned to capitalise on these models — reducing clearing costs and lowering margin obligations.
Travis Keltner, Global Head of Secured Financing, State Street
2026 will be a turning point for securities finance. Transparency, market integrity, and new regulatory frameworks will dominate, while automation across the trade lifecycle and optimisation will separate leaders from laggards. Early adopters of technology will set the pace for innovation and industry advancement.
We expect a strategic shift beyond Europe and the US, with diversification into APAC, LatAm, and Africa unlocking new opportunities.
MUFG is committed to leading this evolution — strengthening our position in repo and securities lending, delivering dynamic trading solutions, and staying true to the MUFG way: being a trusted partner to clients and fostering an inclusive global organisation where everyone brings their best to what we do.
Ruth Ferris, Head of Secured Financing, MUFG
Looking ahead to 2026, the securities finance industry will likely be focused on identifying and leveraging opportunities to create greater efficiencies throughout the post-trade lifecycle. As markets continue to evolve and trading activity extends, the Íø±¬³Ô¹Ï Finance and Collateral Management sector will need to assess both existing tools and potential innovations that can be utilised to meet these changes. The largest impact is expected to come from initiatives that streamline clearance and settlement processes, reduce operational complexity, and optimise capital usage. By embracing new models and approaches that enhance efficiency, the industry can deliver meaningful benefits from an overall capital perspective and position itself to respond effectively to the demands of a rapidly changing marketplace.
Bob Cavallo, Director, Clearance and Settlement Product Management, DTCC
The securities finance landscape enters 2026 at a pivotal moment. After a record year, several structural forces will define how the market evolves. A more business-friendly regulatory environment and clearer guidance around digital assets will unlock new areas of growth and accelerate innovation. Financing desks will continue to consolidate as firms look for more sophisticated ways to optimise balance sheet, liquidity, and capital efficiency.
DLT and AI will shift from experimentation to measurable workflow impact, transforming how firms manage post-trade processes, risk, and operational scale. At the same time, new centrally cleared models will offer more risk-weighted asset (RWA) efficient structures for high risk-weight funds. And with Europe’s move to T+1 in 2027, the urgency around automated SSIs, returns, and networked infrastructure will materially increase as firms work to reduce operational risk under compressed settlement timelines.
In 2026, the industry will move decisively toward interconnected platforms that require collaboration across the ecosystem. Firms that embrace shared infrastructure, automation, and intelligent data will materially strengthen decision-making and operating performance, setting the pace for the next phase of market evolution.
Nick Delikaris, Chief Product Officer, EquiLend
I believe the most significant impact in 2026 will be driven by cross continental activities aimed at fostering greater global alignment — from a European perspective, that is preparation for T+1 while locally in the Kingdom of Saudi Arabia (KSA), that is the institutionalisation of KSA’s repo and securities-based lending (SBL) markets. In the European context, custodians gearing up for T+1 migration — which is expected in late 2027 — would preemptively solve for funding misalignment and collateral friction.
Given the recent regulatory enhancements and changes, I believe the Kingdom’s focus will be on enabling international clients to access Saudi liquidity instantly to meet compressed global settlement cycles, while simultaneously empowering local asset owners to monetise their portfolios through more sophisticated lending programmes.
Sarah Fahad Alothman, Managing Director, Head of Íø±¬³Ô¹Ï Services, Riyad Capital
While 2025 has been marked by macroeconomic and geopolitical volatility, the resilience of funding markets has underscored the increasing sophistication of market participants and the critical importance of robust financial resource management. In 2026, the industry will be impacted by the convergence of regulatory evolution and the expansion of collateral markets.
J.P. Morgan is seeing increased demand for capital-optimised structures and is motivating both in-scope borrowers and lenders to rethink liquidity and collateral management. Liquidity management remains central for institutional clients, with a growing trend to expand variation margin eligibility to securities — providing greater flexibility and liquidity resiliency. Clients are leveraging their securities inventory through secured financing and derivative-based structures, strategically deploying cash into higher-yielding investments or operational needs.
Additionally, the opening of new collateral markets, exemplified by the recent lifting of Korea’s short sale ban and increased participation from Middle Eastern and Asian counterparties, will accelerate globalisation and enhance collateral mobility. Those who adapt to regulatory change and capitalise on new collateral opportunities will deliver the greatest value.
Eileen Herlihy, Global Head of Sales for Trading Services at J.P. Morgan
2026 will be marked by significant transformation and heightened expectations from market participants across the industry. The demand for sophisticated, data-driven insights into programme performance and market opportunities is accelerating. Clients now expect their agent lenders to provide comprehensive analytics across all aspects of the business. Organisations that prioritise strategic investment in advanced technology platforms, and empower employees to leverage automation and artificial intelligence, will be best positioned to capitalise on these evolving demands. The ability to deliver meaningful recommendations and operational excellence through innovation will be a key differentiator in the years ahead.
Lisa Tomada, Vice President, Global Íø±¬³Ô¹Ï Lending, CIBC Mellon
Africa is stepping into 2026 with strong tailwinds. South Africa’s recent credit ratings upgrade and the surge in investor confidence provide a solid foundation for growth, unlocking deeper liquidity and expanding counterparties in the securities lending space. Across the continent, momentum is building: Nigeria’s approval for pension funds to participate in lending introduces a vast pool of long-term capital; Kenya’s pending adoption of the Global Master Íø±¬³Ô¹Ï Lending Agreement (GMSLA) aligns its market with global standards; and Botswana’s implementation plans signal a commitment to modern infrastructure.
These developments echo global priorities — transparency, resilience, and digitisation — while positioning Africa as a region ready to leapfrog legacy barriers. With regulatory alignment, robust infrastructure, and new pools of capital, the continent is no longer on the sidelines; it’s becoming a central player in the global securities finance narrative. For investors seeking growth and innovation in 2026, Africa is the place to be.
Hitesh Harduth, Head of Íø±¬³Ô¹Ï Lending, Standard Bank Corporate and Investment Banking
In 2026 we expect that it will take the Federal Open Market Committee (FOMC) some time to analyse the recently released data, develop a policy consensus, and a subsequent cadence for policy decision action. Further progress on inflation and interest in supporting the labor market may result in a 25bp rate cut at the March meeting. This continued FOMC focus on extinguishing the last impulses keeping US inflation above two per cent likely gives the financial markets comfort; US Rates (duration), and risk assets (US Equities and Credit) may benefit thematically as a result. The incoming FOMC chair will likely take a balanced and measured pro-economic growth/lower rate policy posture.
2026 should witness continued US regulatory support and evolution towards policy structures that improve liquidity, transparency, and the resilience of the mission critical US Treasury cash and repurchase markets. This may come in the shape of continued progress towards central clearing and potentially broader access to facilities designed to help precipitate increased short-term financing market liquidity, when required. Perhaps we will also see further progress on enhanced supplementary leverage ratio (eSLR); unlocking liquidity and improving intermediation.
Andrew Lazar, Head of Sales, Buckler Íø±¬³Ô¹Ï
We anticipate that securities finance will continue evolving and expanding into new markets, trade structures, and trading venues throughout 2026. The ambitions for large participants in this sector have partially shifted from being primarily driven by cost discipline and ancillary income to prioritising liquidity management. This change in turn heightens resilience against market stress scenarios, and demand for high-quality liquid assets (HQLAs) continues to grow.
Adnan Hussain, Global Head of Agency Lending & Liquidity Services, HSBC
In 2026, institutional Digital Asset solutions will continue to move from promise to production. Over the last year, we have seen financial market infrastructures (FMIs) such as Clearstream, DTCC, and SIX accelerate the digital asset infrastructure they are building for collateral solutions and testing digital rails for collateral movements. At the same time, we are seeing Asia and Middle East markets advance their tokenisation frameworks bringing real-world assets into the digital space. The industry is laying the groundwork for what the Bank for International Settlements (BIS) and World Economic Forum (WEF) have long envisioned: real-time posting, reuse and reallocation of collateral across markets.
We see this shift across our footprint. In the Middle East and Asia, regulators and market operators are accelerating digital asset frameworks, while asset managers push for greater cross-border liquidity efficiency. With the tokenisation of funds and real-world assets now becoming commercially viable, the market is opening up infrastructure that could support intraday collateral mobility, programmable settlement and interoperable custodian models.
As the first global systemically important bank to offer institutional-grade digital asset custody, Standard Chartered is already seeing these ecosystems deepen. In 2026, we expect tokenised assets to move beyond isolated pilots and begin circulating within real collateral workflows — linking traditional finance with Web3-native platforms and enabling more capital-efficient financing across Asia.
Our prediction is clear: next year will mark the moment when digital asset rails start to meaningfully transform the collateral landscape. And, it will be the collaboration between FMIs, trusted banks, and emerging digital platforms that makes real-time collateral optimisation a reality.
Margaret Harwood-Jones, Global Head, Financing and Íø±¬³Ô¹Ï Services (FSS), Standard Chartered
Regulators across major markets are accelerating the need to modernise post-trade infrastructure, creating an unusual situation where the public sector is moving faster than many of the financial institutions it oversees. The shift is considerable, with central banks across the globe advancing stablecoin focused task forces (US, UK, and International) looking at digital ledger-based models. As we head into 2026, therefore, the direction of travel around FX settlement models is clear. The what is defined, but it’s the how and when that are yet to be realised on a larger scale. The focus next year needs to be on practical execution.
This year, the foundations have been built and regulatory momentum established. The risks of not embracing digital settlement now outweigh the short-term convenience of trying to maintain old systems that no longer align with market dynamics. As such, 2026 will be a decisive year in FX settlement and liquidity management, set to further widen the gap between early movers and late adopters.
Basu Choudhury, Head of Partnerships and Strategic Initiatives, OSTTRA
In 2026, we anticipate greater divergence in securities lending returns as borrowers refine sources to target low or zero-risk-weight exposures. The proliferation of capital transformation structures will amplify this trend — clients that adopt these structures will consistently outperform those that do not.
In the fixed income markets we see 2026 as a pivotal year for US Treasury clearing. Key compliance deadlines include cash trading by the end 2026 and repo by 30 June 2027. To meet these requirements, clients and counterparties will accelerate onboarding of new sponsors and access models. Expect continued growth in Sponsored repo as well as the adoption of new FICC access models, including Agent Clearing and Collateral-in-Lieu services.
Clients that meet compliance standards by strategically sourcing balance sheet needs across the sell side will be well-positioned to capitalise on these models — reducing clearing costs and lowering margin obligations.
Travis Keltner, Global Head of Secured Financing, State Street
2026 will be a turning point for securities finance. Transparency, market integrity, and new regulatory frameworks will dominate, while automation across the trade lifecycle and optimisation will separate leaders from laggards. Early adopters of technology will set the pace for innovation and industry advancement.
We expect a strategic shift beyond Europe and the US, with diversification into APAC, LatAm, and Africa unlocking new opportunities.
MUFG is committed to leading this evolution — strengthening our position in repo and securities lending, delivering dynamic trading solutions, and staying true to the MUFG way: being a trusted partner to clients and fostering an inclusive global organisation where everyone brings their best to what we do.
Ruth Ferris, Head of Secured Financing, MUFG
Looking ahead to 2026, the securities finance industry will likely be focused on identifying and leveraging opportunities to create greater efficiencies throughout the post-trade lifecycle. As markets continue to evolve and trading activity extends, the Íø±¬³Ô¹Ï Finance and Collateral Management sector will need to assess both existing tools and potential innovations that can be utilised to meet these changes. The largest impact is expected to come from initiatives that streamline clearance and settlement processes, reduce operational complexity, and optimise capital usage. By embracing new models and approaches that enhance efficiency, the industry can deliver meaningful benefits from an overall capital perspective and position itself to respond effectively to the demands of a rapidly changing marketplace.
Bob Cavallo, Director, Clearance and Settlement Product Management, DTCC
The securities finance landscape enters 2026 at a pivotal moment. After a record year, several structural forces will define how the market evolves. A more business-friendly regulatory environment and clearer guidance around digital assets will unlock new areas of growth and accelerate innovation. Financing desks will continue to consolidate as firms look for more sophisticated ways to optimise balance sheet, liquidity, and capital efficiency.
DLT and AI will shift from experimentation to measurable workflow impact, transforming how firms manage post-trade processes, risk, and operational scale. At the same time, new centrally cleared models will offer more risk-weighted asset (RWA) efficient structures for high risk-weight funds. And with Europe’s move to T+1 in 2027, the urgency around automated SSIs, returns, and networked infrastructure will materially increase as firms work to reduce operational risk under compressed settlement timelines.
In 2026, the industry will move decisively toward interconnected platforms that require collaboration across the ecosystem. Firms that embrace shared infrastructure, automation, and intelligent data will materially strengthen decision-making and operating performance, setting the pace for the next phase of market evolution.
Nick Delikaris, Chief Product Officer, EquiLend
I believe the most significant impact in 2026 will be driven by cross continental activities aimed at fostering greater global alignment — from a European perspective, that is preparation for T+1 while locally in the Kingdom of Saudi Arabia (KSA), that is the institutionalisation of KSA’s repo and securities-based lending (SBL) markets. In the European context, custodians gearing up for T+1 migration — which is expected in late 2027 — would preemptively solve for funding misalignment and collateral friction.
Given the recent regulatory enhancements and changes, I believe the Kingdom’s focus will be on enabling international clients to access Saudi liquidity instantly to meet compressed global settlement cycles, while simultaneously empowering local asset owners to monetise their portfolios through more sophisticated lending programmes.
Sarah Fahad Alothman, Managing Director, Head of Íø±¬³Ô¹Ï Services, Riyad Capital
While 2025 has been marked by macroeconomic and geopolitical volatility, the resilience of funding markets has underscored the increasing sophistication of market participants and the critical importance of robust financial resource management. In 2026, the industry will be impacted by the convergence of regulatory evolution and the expansion of collateral markets.
J.P. Morgan is seeing increased demand for capital-optimised structures and is motivating both in-scope borrowers and lenders to rethink liquidity and collateral management. Liquidity management remains central for institutional clients, with a growing trend to expand variation margin eligibility to securities — providing greater flexibility and liquidity resiliency. Clients are leveraging their securities inventory through secured financing and derivative-based structures, strategically deploying cash into higher-yielding investments or operational needs.
Additionally, the opening of new collateral markets, exemplified by the recent lifting of Korea’s short sale ban and increased participation from Middle Eastern and Asian counterparties, will accelerate globalisation and enhance collateral mobility. Those who adapt to regulatory change and capitalise on new collateral opportunities will deliver the greatest value.
Eileen Herlihy, Global Head of Sales for Trading Services at J.P. Morgan
2026 will be marked by significant transformation and heightened expectations from market participants across the industry. The demand for sophisticated, data-driven insights into programme performance and market opportunities is accelerating. Clients now expect their agent lenders to provide comprehensive analytics across all aspects of the business. Organisations that prioritise strategic investment in advanced technology platforms, and empower employees to leverage automation and artificial intelligence, will be best positioned to capitalise on these evolving demands. The ability to deliver meaningful recommendations and operational excellence through innovation will be a key differentiator in the years ahead.
Lisa Tomada, Vice President, Global Íø±¬³Ô¹Ï Lending, CIBC Mellon
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