Many banks manage collateral in business silos - with prime services, equity finance, repo and treasury. Recent events have forced banks to introduce new processes and procedures, many of which are highly manual due to the lack of technology. As a result, collateral management departments are overstretched, even with current volumes. It is therefore difficult to imagine how they will cope as volatility and volumes increase, and few banks have a clear vision of this. One recent report estimated that $2000 billion of extra collateral will be needed to meet margin demands for Central Counterparty (CCP) clearing. A ‘squeeze’ of this nature will probably means that all banks will have to make further optimisations in their use of assets - even if they believe they do so already.