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
Latest
Global Trading in INR Derivatives
Global trading in derivatives involving the Indian rupee (INR) has expanded significantly over the past decade, reflecting the currency’s growing role in international hedging and trading activity. According to the Bank for International Settlements (BIS) Triennial Central Bank Survey, the...
Response to FCA on Commodity Derivatives Clearing
On April 9, ISDA, the Commodity Markets Council Europe (CMCE), Energy Traders Europe (ETE) and FIA jointly responded to Chapter 7 of the UK Financial Conduct Authority’s (FCA) Quarterly Consultation CP26/8 on increasing the clearing threshold for commodity derivatives under the UK...
Response on EC’s SFR Proposal
On April 9, ISDA published technical comments on the European Commission’s (EC) proposed Settlement Finality Regulation (SFR) as it applies to designated EU systems and registered third-country systems. One significant concern is that the scope of insolvency protections provided to...
Natixis CIB Adopts ISDA’s DRR
ISDA has announced that Natixis CIB has adopted ISDA’s Digital Regulatory Reporting (DRR) solution, enabling the bank to meet regulatory reporting requirements more efficiently and accurately. The ISDA DRR uses the Common Domain Model (CDM) – an open-source data standard...