The European Central Bank’s September 2026 survey found that overall credit terms in euro-denominated securities financing and over-the-counter derivatives markets eased slightly for all counterparty types from June to August, extending the trend recorded in the previous three survey rounds. The easing was concentrated in price terms. Non-price terms eased slightly for banks and dealers, tightened slightly for hedge funds and were unchanged for other counterparties, while respondents expected a further slight overall easing over the following three months. In securities financing, demand increased for funding secured against most collateral types, led by equities, for which a net 27% of respondents reported an increase. Financing rates and spreads rose for most-favoured clients across all collateral types, while increases for average clients were confined to certain government bonds and convertible securities. Haircuts declined for most bond collateral and asset-backed securities, and the maximum amount and maturity of available funding increased for some collateral types. For non-centrally cleared OTC derivatives, initial margin requirements decreased slightly for foreign exchange, interest rate, equity and several credit derivatives. Maximum exposures and trade maturities were broadly unchanged, but valuation disputes increased across several derivative types, particularly credit derivatives. Liquidity and trading deteriorated for equity and commodity derivatives but improved slightly for credit derivatives referencing sovereigns.

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