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ECB survey shows slight easing in euro securities financing terms

The ECB said the easing in June to August was mainly driven by price terms, with non-price terms easing slightly for banks and dealers but tightening slightly for hedge funds.

Reported · Written up by our desk · Central Banks

The European Central Bank released results from its September 2026 SESFOD survey on euro-denominated securities financing and OTC derivatives markets, covering uncertainty tied to the Middle East conflict and volatile energy prices.

For the June to August 2026 review period, the ECB found overall credit terms and conditions eased slightly across all counterparty types, extending easing from prior survey rounds, with the shift primarily reflected in price terms rather than non-price terms.

In particular, non-price terms eased slightly for banks and dealers, tightened slightly for hedge funds, and were unchanged for other counterparty types, while a small number of respondents pointed to factors such as market liquidity and competition.

The survey also reported that hedge funds increased leverage slightly, valuation disputes were unchanged in volume and persistence, and respondents expected a further slight overall easing over the following three months.

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