Interest rate derivatives (IRD) trading activity grew in the year-to-September 2024 compared to the same period in 2023, driven by interest rate volatility and adjustments to central bank policies. Index credit derivatives also saw increased trading activity as market participants sought to hedge against credit risk in a shifting macroeconomic environment.

Key highlights for the year-to-September 30, 2024, include:

• IRD traded notional rose by 21.2% to $311.9 trillion in the nine months to September 30 from $257.3 trillion in the nine months to September 30, 2023. Trade count grew by 17.8% to 2.3 million from 2.0 million over the same period.
• Cleared IRD transactions accounted for 72.3% of total IRD traded notional and 75.8% of trade count. 83.4% of fixed-for- floating IRS, 78.9% of FRA, 82.7% of OIS and 6.7% of other IRD traded notional was cleared.
• IRD transactions executed on swap execution facilities (SEFs) comprised 57.7% of total IRD traded notional and 72.2% of trade count.
• Index credit derivatives traded notional increased by 11.8% to $9.6 trillion in the nine months to September 30 from $8.6 trillion in the nine months to September 30, 2023. Trade count fell by 1.6% to 258.4 thousand from 262.6 thousand over the same period.
• Security-based credit derivatives traded notional fell by 9.8% to $532.0 billion in the nine months to September 30 from $589.7 billion in the year to September 30, 2023. Trade count fell by 12.9% to 166.7 thousand from 191.4 thousand over the same period.

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