This report analyzes credit derivatives trading activity reported in Europe. The analysis shows European credit derivatives transactions based on the location of reporting venues (EU versus UK) and product type. The report also compares European-reported credit derivatives trading activity to what is reported in the US.
Key highlights of the second quarter of 2025 include:
- European credit default swap (CDS) traded notional rose by 55.4% to $2.5 trillion in the second quarter of 2025 compared to $1.6 trillion in the second quarter of 2024. 79.7% of European CDS traded notional was reported in the UK, with the EU accounting for 20.3%. Index CDS comprised 89.7% of CDS traded notional in Europe and single-name CDS accounted for 10.3%.
- European index CDS traded notional grew by 60.0% to $2.2 trillion from $1.4 trillion, with the UK accounting for 77.5% and the EU representing 22.5%.
- European single-name CDS rose by 23.7% to $254.3 billion from $205.7 billion. The UK represented the majority of single-name CDS trading in Europe, comprising 98.7% of traded notional, while the EU made up 1.3%.
- US-reported CDS traded notional increased by 85.3% to $5.4 trillion from $2.9 trillion. Combined European and US traded notional grew by 74.7% to $7.9 trillion from $4.5 trillion.
- UK-reported trades accounted for 25.0% of combined EU, UK and US CDS traded notional, the EU made up 6.4% and US-reported trades comprised 68.6%. Index CDS trading was concentrated in the US (70.2%), followed by the UK (23.1%) and the EU (6.7%), while single-name CDS activity was heavily concentrated in the UK (59.5%) and US (39.7%), with the EU representing 0.8%.
Click on the attached PDF to read the full report.
Documents (1) for Credit Derivatives Trading Activity Reported in EU, UK and US Markets: First Half of 2025 and Second Quarter of 2025
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