This paper analyzes recent trends in the size and composition of over-the-counter (OTC) derivatives markets, using the latest data from the Bank for International Settlements (BIS) and ISDA.
According to the BIS, OTC derivatives notional outstanding decreased during the second half of 2018 compared with the first half of 2018, driven by a decline in both US dollar- and euro- denominated interest rate derivatives (IRD) contracts. However, notional outstanding at year-end 2018 was higher compared with year-end 2017.
This trend in notional outstanding can also be seen in swap trading volumes in the US, as trading in US dollar- and euro-denominated IRD products declined during the second half of 2018 compared with the first half, but increased year-over-year.
BIS data shows that the gross market value of OTC derivatives contracts continued to decline in 2018. Gross credit exposure – gross market value after netting – also declined to its lowest level since 2007. Following the implementation of the margin rules for non-cleared derivatives, more and more of that gross credit exposure is collateralized.
Click on the PDF below to read the full report.
Documents (1) for Key Trends in the Size and Composition of OTC Derivatives Markets
Latest
Response to EC on Market Risk Prudential Framework
On January 6, ISDA, the Association for Financial Markets in Europe (AFME) and the Institute of International Finance (IIF) submitted a joint response to the European Commission’s (EC) targeted consultation on the application of the market risk prudential framework. ISDA,...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
Response on CCP Participation Requirements
On December 24, ISDA responded to a consultation from the European Securities and Markets Authority (ESMA) on central counterparty (CCP) participation requirements. Participation requirements for CCPs are vital for safe and efficient clearing markets, and ISDA broadly supports ESMA’s consultation...
U.S. Federal Holidays on December 24 and 26, 2025
Pursuant to an Executive Order of the President of the United States, December 24 and December 26 have been designated as federal holidays for U.S. federal government purposes. The designation of such dates as U.S. federal holidays is not expected to affect...