Key Trends in the Size and Composition of OTC Derivatives Markets in the Second Half of 2022

The latest data from the Bank for International Settlements (BIS) over-the-counter (OTC) derivatives statistics shows a significant increase in gross market value and gross credit exposure of OTC derivatives during the second half of 2022 compared to the second half of 2021. The growth was driven by higher interest rate derivatives (IRD) market value following increases in interest rates for key currencies in 2022.

The gross market value of OTC derivatives contracts rose by 66.8% at year-end 2022 compared to the end of 2021. Gross credit exposure – gross market value after netting – grew by 44.9%. Global OTC derivatives notional outstanding increased by 3.3% at year-end 2022 compared to year-end 2021.

Market participants reduced their total mark-to-market exposure by 82.3% at year-end 2022 due to close-out netting. Credit exposure was further reduced by the collateral that market participants posted for cleared and non-cleared derivatives transactions.

Documents (1) for Key Trends in the Size and Composition of OTC Derivatives Markets in the Second Half of 2022

DRR Expanded to Cover Hong Kong's Revised Rules

ISDA has expanded its Digital Regulatory Reporting (DRR) solution to support revised derivatives reporting rules in Hong Kong, enabling in-scope firms to implement the changes cost-effectively and accurately. The amendments from the Hong Kong Monetary Authority (HKMA) and the Securities...

Joint Letter on Simplification of EU Taxonomy

On October 6, ISDA, the Association for Financial Markets in Europe (AFME), the European Fund and Asset Management Association (EFAMA), the European Association of Co-operative Banks (EACB) and the European Banking Federation (EBF) published a policy statement in support of...

Paper on Removal of SI Regime

On October 10, ISDA, the Association for Financial Markets in Europe (AFME) and the International Capital Market Association (ICMA) published a paper on the practical implications of the recent discontinuation of the systematic internalizer (SI) regime for derivatives, bonds and...