ECB survey: Euro-area securities financing and OTC derivatives credit terms tighten

The ECB's September 2026 SESFOD survey indicates a net tightening of credit terms for euro-denominated securities financing and OTC derivatives, reflecting reduced risk appetite among lenders. The survey covers market conditions for banks and dealers, with the tightening likely driven by ongoing balance-sheet constraints and regulatory pressures. This signals a modest reduction in market liquidity and could weigh on leveraged positions, though the magnitude is moderate.