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
ISDA AGM Studio: David Bailey
David Bailey, executive director, prudential policy, at the Bank of England, speaks with ISDA CEO Scott O’Malia about the UK’s approach to Basel 3.1, the impact of the revised US Basel III endgame on cross‑border consistency and the role of the...
ISDA AGM Studio: Harleen Bains and Sonali Das Theisen
How have trading desks responding to increased market volatility this year? Harleen Bains, ISDA board member and head of global markets sales, Canada, at RBC Capital Markets, and Sonali Das Theisen, global head of FICC e‑trading and markets strategic investments...
ISDA AGM Studio: Scott O'Malia and Chris Edmonds
Christopher Edmonds, president, fixed income & data services, at Intercontinental Exchange, speaks with Scott O’Malia, ISDA CEO, about how market volatility, regulatory change and technological transformation are reshaping global markets. The discussion explores what recent volatility has meant for participation,...
ISDA AGM Studio: Bill Borden, Microsoft
Bill Borden, corporate vice president, worldwide financial services, at Microsoft, speaks with Mark New, ISDA’s co-head of digital transformation and senior counsel, about how artificial intelligence (AI) is shaping the future of financial markets and the key factors firms should...