The European Central Bank has published the results of its March 2026 survey on credit terms and conditions in euro-denominated securities financing and non-centrally cleared over-the-counter derivatives markets. Between December 2025 and February 2026, overall terms eased slightly across most counterparty types, mainly for banks and dealers, with improved market liquidity, competition among institutions and counterparties’ financial strength cited as the main drivers. Survey respondents expected funding conditions to ease slightly again from March to May 2026. In securities financing markets, demand for funding increased across all collateral types and the maximum amount and maturity of funding offered rose slightly on balance. Haircuts were largely unchanged, with only marginal declines for some collateral types, while financing rates and spreads increased for funding secured against all collateral except non-domestic high-quality government bonds. In non-centrally cleared OTC derivatives, initial margin requirements fell slightly, exposure limits and trade maturities were broadly stable, and valuation disputes eased modestly. Compared with a year earlier, non-price terms for securities financing and OTC derivatives were broadly unchanged, including the stringency of terms and secured funding haircuts, while price terms had tightened.
European Central Bank2026-05-20
European Central Bank survey shows slight easing in euro-denominated securities financing and OTC derivatives credit terms
The European Central Bank’s March 2026 survey on euro‑denominated securities financing and non‑centrally cleared OTC derivatives showed a slight easing in overall credit terms between December 2025 and February 2026, especially for banks and dealers, driven by better market liquidity, competition and counterparty strength. In securities financing, funding demand, offered amounts and maturities rose, haircuts were stable, and financing rates and spreads increased. In non‑centrally cleared derivatives, initial margins fell slightly and non‑price terms were largely unchanged. Respondents expected a further slight easing in funding conditions from March to May 2026, while compared with a year earlier non‑price terms were broadly stable and price terms had tightened.