Size and Uses of the Non-Cleared Derivatives Market

The derivatives industry has made huge progress in moving towards central clearing, particularly in the interest rate derivatives (IRD) space. By the end of 2013, approximately 65% of IRD notional outstanding had been cleared through central counterparties (CCPs), even before clearing mandates are in force in much of the world. This figure will increase as more countries develop the relevant infrastructure and mandates take effect.

However, a meaningful portion of the derivatives market will remain uncleared. These instruments are often vital cogs in the risk management strategies of corporates, insurance companies, pension funds, sovereigns, smaller financial institutions and others. Without them, these entities may experience greater earnings volatility due to an inability to qualify for hedge accounting, or be unable to offset the interest rate, inflation and longevity risks posed by long-dated pension or insurance liabilities.

This ISDA study focuses specifically on the interest rate derivatives market to analyse the size of the non-cleared segment and the instruments it encompasses. The report then describes some common uses for these products by derivatives end-users.

Documents (1) for Size and Uses of the Non-Cleared Derivatives Market

Letter on EU Legislative Reform

On July 1, ISDA and 11 other trade associations published a statement on enhancing the EU legislative and supervisory framework to support market competitiveness. The statement highlights a significant opportunity to strengthen the EU’s regulatory and supervisory framework through the...

Response to CPMI-IOSCO Margin Proposals

On June 29, ISDA submitted a response to a consultation from the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) on updated guidance and public quantitative disclosures to implement the 2025 margin proposals....

US Treasury Repo Clearing Indicators May 2026

The ISDA-Actrix US Treasury Repo Market Clearing Indicators illustrate central clearing adoption in the US Treasury repo market. Sponsored cleared repo volumes are used as a proxy to monitor client participation in central clearing, the key objective of the Securities...