ECB September 2026 Survey Shows Slight Easing in Euro Securities Financing and OTC Derivatives Credit Terms

The European Central Bank's September 2026 SESFOD survey found that overall credit terms and conditions slightly eased for all counterparty types for the fourth consecutive quarter, primarily due to price term changes. Demand for securities financing rose, led by equities (net 27% of respondents), while financing rates/spreads increased for most-favoured clients. Haircuts decreased for most bond collateral types, despite increased valuation disputes in foreign exchange and credit derivatives. This survey covered a period of uncertainty linked to the Middle East conflict and volatile energy prices, following the ECB's 25 basis point rate hike in June 2026.