The latest ISDA SwapsInfo Quarterly Review shows that interest rate derivatives (IRD) traded notional and trade count increased in the third quarter of 2023 compared to the third quarter of 2022, while index credit derivatives trading activity declined over the same period.

Key highlights for the third quarter of 2023 include:

• Total IRD traded notional rose by 6.5% to $73.3 trillion in the third quarter of 2023 from $68.8 trillion in the first quarter of 2022. Trade count increased by 3.9% to 590.4 thousand from 568.2 thousand over the same period.
• Cleared IRD transactions comprised 76.7% of total IRD traded notional and 79.3% of total trade count.
• IRD traded on swap execution facilities (SEFs) made up 52.8% of total IRD traded notional and 67.9% of trade count.
• Index credit derivatives traded notional decreased by 25.2% to $2.7 trillion in the third quarter of 2023 from $3.6 trillion in the third quarter of 2022. Trade count declined by 20.4% to 79.8 thousand in the third quarter of 2023 from 100.3 thousand over the same period.
• Cleared index credit derivatives transactions accounted for 87.1% of total index credit derivatives traded notional and 90.6% of total trade count.
• SEF-traded index credit derivatives comprised 85.9% of total index credit derivatives traded notional and 89.4% of trade count.
• Security-based credit derivatives traded notional declined by 1.0% to $173.9 billion in the third quarter of 2023 from $175.6 billion in the third quarter of 2022. Trade count dropped by 4.1% to 52.6 thousand from 54.9 thousand over the same period.
• Cleared security-based credit derivatives transactions accounted for 49.5% of total security-based credit derivatives traded notional and 47.8% of total trade count.

Click on the attached PDF to read the report.