This report analyzes interest rate derivatives (IRD) trading activity reported in Europe. The analysis is based on transactions publicly reported by 30 European approved publication arrangements (APAs) and trading venues (TVs).

Key highlights for the first quarter of 2023 include:

• Total European IRD trading activity reported by APAs and TVs in the EU and UK increased by 22.0% to $53.4 trillion in the first quarter of 2023 from $43.7 trillion in the first quarter of 2022.
• IRD traded notional reported in the UK accounted for 72.0% of European IRD traded notional, while EU-reported traded notional comprised 28.0%.
• Euro-denominated IRD traded notional accounted for 56.4% of European IRD traded notional. Sterling-denominated transactions comprised 15.6% of European traded notional, while contracts denominated in US dollars made up 18.9%.
• Overnight index swaps accounted for 63.1% of European IRD traded notional, while fixed-for-floating interest rate swaps and forward rate agreements totaled 22.3% and 11.3%, respectively.
• 34.0% of European IRD traded notional took place on TVs and 48.7% was executed by systematic internalizers. The remaining 17.3% of European IRD traded notional was reported as XOFF.