BBVA
Expanding an institutional business
20 January 2026
Leading BBVA’s global Securities Finance Trading business, Michael Manna speaks with Carmella Haswell about this global unit following its inception in 2022, the drive to expand in Mexico, and next steps for the firm
Image: Michael Manna
From the BBVA perspective, how do you view the current global securities finance market?
In recent years, and in line with the nature of financial markets, we are observing ongoing development rather than a radical change, a testament to the market's continuous need to adapt to evolving regulatory requirements, technological advancements, and shifting investor expectations.
From a commercial standpoint, managing the interplay of collateral and funding against capital requirements remains essential for maximising returns and creating additional balance sheet capacity.
I also see a greater interconnectivity and reliance across the market. This is evident in the increased adoption not only at the institutional level but also by corporates and through new retail products that utilise secure funding.
Regarding operational efficiency and productivity, through the adoption of distributed ledger technology (DLT), we see it as a question of ‘when’ not ‘if’. The primary challenge is overcoming the migration from legacy analog systems to digital — a transition the telecom industry successfully navigated — and reminiscent of the shift from the rotary phone. I might have just given away my age!
The firm launched its Securities Finance Trading business in 2022. What prompted the bank to create a global unit dedicated to this segment? And where does BBVA position itself in this market?
Our SFT platform is part of a wider strategy to expand BBVA’s institutional business in a sustainable and capital-efficient manner, mirroring the approach we implemented for other product platforms such as rates and credit.
Creating a global unit offered several advantages: a single point of entry for all trade and asset class types; an improved client experience; with the added benefit of efficient risk oversight and capital management. It has also streamlined the rollout of a unified technology strategy and the onboarding of new products and capabilities.
In terms of positioning, our platform capabilities are now on par with Tier 1 institutions, enabling us to compete effectively in the areas where we chose to compete.
Almost four years on from its inception, how have you seen the SFT business evolve during this time?
As previously noted, the funding market is constantly adapting to external forces, which brings both opportunities and risks. In particular, post-crisis regulatory reforms have reinforced the importance of efficient collateral usage and balance sheet optimisation, making securities finance a structural component of the market rather than a cyclical one.
Our later start offers a key advantage — the benefit of hindsight. This allows us to rapidly adopt industry best practices and solutions. This ability enables us to not only scale more efficiently but also to be in a better position to manage the risks associated with that growth.
Also, one of BBVA’s corporate strategic priorities is to unlock the potential of artificial intelligence and innovation through data availability and next-gen technologies. We are very keen to leverage this approach to help our growth and differentiation as the SFT business continues to mature.
With offices in London, New York, and Hong Kong, and with a key focus on regions such as Latin America and Turkey, can you explore the emerging markets that are capturing your attention?
We have a global platform. BBVA is the fourth-largest bank in Europe and has a major presence in Turkey and Latin America. It makes strategic sense, therefore, to lean into these regional strengths. One key focus is Mexico, where the change in national legislation is driving the SFT market to converge with established practices in more developed markets, leading to further adoption and growth.
It is worth noting that we also have a presence in the US market, in which we are making significant direct investment to further enhance our capabilities needed for growth.
Looking forward, what will be key priorities for the firm in 2026 and what can the industry expect next from BBVA’s SFT business?
For the past four years, we were internally focused on building our platform and team. As we transition to running the business, our focus will naturally become more external: engaging with policy makers; supporting clients with analysis and thought leadership; and actively participating through industry bodies.
