The latest data from the Bank for International Settlements (BIS) over-the-counter (OTC) derivatives statistics shows a modest increase in notional outstanding during the second half of 2024 compared to the same period in 2023. Notional outstanding for interest rate, foreign exchange (FX), equity and commodity derivatives all rose year-on-year.
As major central banks shifted from a tightening to a more neutral or easing stance, interest rate volatility declined. This typically reduces the mark-to-market value of outstanding derivatives positions, leading to a drop in the gross market value of interest rate derivatives (IRD) compared to the prior tightening period. Similarly, gross credit exposure declined during this period.
By year-end 2024, the notional outstanding of global OTC derivatives rose by 4.9% compared to year-end 2023. In contrast, the gross market value of OTC derivatives contracts fell by 2.8%, while gross credit exposure, which represents the gross market value after netting, fell by 2.8% over the same period.
Total mark-to-market exposure dropped by 83.2% due to close-out netting. Credit exposure was further reduced by the collateral market participants posted for cleared and noncleared derivatives transactions.
Market participants posted $389.8 billion of required initial margin (IM) for cleared IRD and credit default swaps (CDS) transactions at all major central counterparties (CCPs) at the end of 2024 from $392.2 billion a year earlier. The leading derivatives market participants also collected $1.5 trillion of IM and variation margin (VM) for non-cleared derivatives exposures, up by 6.4%.
Click on the attached PDF to read the full report.
Documents (1) for Key Trends in the Size and Composition of OTC Derivatives Markets in the Second Half of 2024
Latest
Response to EC Call for Evidence on Tax Omnibus
On March 30, ISDA, the International Securities Lending Association and the Association for Financial Markets in Europe responded to the European Commission’s (EC) call for evidence on the tax omnibus. The associations argue that inconsistent interpretation of “beneficial ownership” among...
Managing Risk for Australian Superannuation Funds
Assets managed by the Australian superannuation sector reached A$4.5 trillion in December 2025, equivalent to around 160% of Australia’s GDP. Given its size, the sector has rapidly expanded its global footprint, with the share of offshore investments growing as 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.
Next Steps on a Much Improved Basel III Endgame
Publication of the revised Basel III endgame proposal earlier this month marks an important step towards completion of the global capital reforms, giving banks much-needed clarity on the likely calibration of the rules in the US. The new proposal is...