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
Market Transformation – IQ May 2026
On the 250th anniversary of American independence, this year’s ISDA Annual General Meeting (AGM) was held in Boston, a city that played a prominent role in the American Revolution. In his opening remarks, ISDA chief executive Scott O’Malia drew a...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
Letter to EC and ESMA on Derivatives Framework
On March 27, ISDA sent a letter to the European Commission (EC) and the European Securities and Markets Authority (ESMA) to highlight several technical issues arising from the interaction between the delegated regulation (EU) 2025/1003 on identifying reference data to...
Response on Proposed Changes to Transaction Rules
On May 22, ISDA and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association submitted a joint response to the Australian Securities and Investments Commission's (ASIC) consultation on proposed changes to the ASIC Derivative Transaction Rules (Reporting)...