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 half of 2023 include:

• Total European IRD trading activity reported by APAs and TVs in the EU and UK rose by 72.7% to $176.2 trillion in the first half of 2023 from $102.0 trillion in the first half of 2022.
• Euro-denominated IRD traded notional increased by 62.7% to $79.3 trillion in the first half of 2023 compared to $48.7 trillion in the first half of 2022 and accounted for 45.0% of total European IRD traded notional.
• Sterling-denominated IRD traded notional grew by 162.0% to $46.7 trillion from $17.8 trillion over the same period and comprised 26.5% of the European total.
• Contracts denominated in US dollars increased by 2.9% to $23.3 trillion from $22.7 trillion, equating to 13.2% of European IRD traded notional.
• Overnight index swaps traded notional grew by 108.9% to $98.6 trillion from $47.2 trillion and accounted for 56.0% of the European total. Fixed-for-floating interest rate swaps traded notional rose by 34.2%, while forward rate agreements increased by 7.8%.
• 62.0% of European IRD traded notional took place on TVs and 26.0% was executed by systematic internalizers. The remaining 12.0% of IRD traded notional was reported as XOFF.