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Hosted by Tonic’s Co-Founder Craig Pearson, this episode of Tonic Boom in partnership with BNY - explores the growing shift towards non-cash collateral for variation margin and what it means for liquidity, funding, and collateral strategy.

Craig is joined by Mark Higgins (BNY) and Alan Baxter (XVA & capital markets SME) for a timely discussion on why firms are revisiting their approach to variation margin in today’s rate and liquidity environment.

It’s a great opportunity to hear directly from market experts at the forefront of this shift, as the industry rethinks long-standing collateral practices in a more dynamic and cost-sensitive landscape.

The conversation covers:

• What’s driving renewed interest in non-cash variation margin

• Why adoption is lagging despite strong business cases

• How tri-party models can unlock scale and reduce operational complexity

• The capital, liquidity, and documentation considerations firms must navigate

• Where tokenisation could play a role in future collateral mobility

With millions in potential funding benefits and increasing pressure to optimise asset usage, this is a practical look at how firms can move from theory to implementation.

If variation margin optimisation is on your agenda, this episode offers clear, actionable insight into what’s changing - and what to do next.

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