The latest data from the Bank for International Settlements over-the-counter (OTC) derivatives statistics shows a significant increase in gross market value and gross credit exposure of OTC derivatives during the first half of 2022 compared to the first half of 2021. The increase in market value was driven by elevated global uncertainty and market volatility related to higher-than-expected inflation and the war in Ukraine.
The gross market value of OTC derivatives contracts increased by 45.4% at mid-year 2022 compared to mid-year 2021. Gross credit exposure – gross market value after netting – rose by 21.5%. At the same time, global OTC derivatives notional outstanding increased modestly by 3.6% at mid-year 2022 compared to mid-year 2021.
Market participants reduced their mark-to-market exposure by 82.0% at mid-year 2022 due to close-out netting. This credit exposure was further reduced by the collateral that market participants posted for cleared and non-cleared derivatives transactions.
Firms posted $359.7 billion of initial margin for cleared interest rate derivatives and single-name and index credit default swaps at all major central counterparties at mid-year 2022.
Click on the attached PDF to read the full report.
Documents (1) for Key Trends in the Size and Composition of OTC Derivatives Markets in the First Half of 2022
Latest
ISDA ALF: Katherine Tew Darras Opening Remarks
ISDA Annual Legal Forum London, February 11, 2026 Opening Remarks Katherine Tew Darras ISDA General Counsel Good morning and welcome to ISDA’s Annual Legal Forum. Thank you for joining us today and thanks to our platinum sponsors – Cleary...
Maintaining Focus on Basel III Endgame Recalibration
In its original form, the US Basel III endgame proposal would have resulted in disproportionate increases in capital for trading book activities, forcing banks to make difficult choices about their participation in certain businesses. After two-and-a-half years, a revised proposal...
IRRBB Management in EMDEs
Interest rate risk in the banking book (IRRBB) has become a growing priority for banks and regulators in emerging market and developing economies (EMDEs). As many of these countries face monetary tightening cycles and ongoing macroeconomic volatility, bank balance sheets...
Response to CPMI-IOSCO on Consultation
On February 5, ISDA and FIA responded to the Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) consultation on the management of general business risks and general business losses by financial market infrastructures (FMIs)....