Insights into Global OTC IRD Markets Based on the 2022 BIS Triennial Central Bank Survey

This paper highlights the changes in over-the-counter (OTC) interest rate derivatives (IRD) markets from 2019 to 2022, using the data from the Bank for International Settlements Triennial Central Bank Survey.

Turnover of global OTC IRD fell by 18.8% in April 2022 versus the previous survey in April 2019 due to a significant decline in US dollar-denominated forward rate agreements. Turnover of euro-denominated contracts grew by 10.4% over the same period.

The UK remained the largest global center for IRD trading, even though the share of global turnover reported by sales desks located in the UK dropped in April 2022 versus the previous survey. Sales desks in the EU reported a higher share of euro-denominated IRD turnover in April 2022 than in April 2019.

Documents (1) for Insights into Global OTC IRD Markets Based on the 2022 BIS Triennial Central Bank Survey

Recognition of Cross-product Netting is Critical

US regulators are in the process of making important changes to the regulatory capital framework by proposing modifications to the enhanced supplementary leverage ratio, which should help stop it from acting as a non-risk-sensitive constraint on bank capacity – a...

ISDA, GFXD Response to FCA on SI Regime

On September 10, ISDA and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association responded to the Financial Conduct Authority's (FCA) consultation paper CP25/20 on the systematic internalizer (SI) regime for derivatives and bonds. ISDA and the...