Trading activity in interest rate derivatives (IRD) and credit derivatives increased in the third quarter of 2025 compared with the same period in 2024, reflecting shifting monetary policy expectations and broader market conditions. IRD traded notional rose by more than 50% year-on-year, led by an increase in overnight index swaps (OIS). Index credit derivatives traded notional grew by about 23%, accompanied by a decline in trade count.
The year-on-year growth in traded notional for both IRD and credit derivatives was partly influenced by revised Commodity Futures Trading Commission (CFTC) block and cap thresholds, which took effect on October 7, 2024, leading to higher disclosed traded notional from the fourth quarter of 2024 onward. The rise in traded notional therefore reflects both greater transparency following the revised thresholds and some growth in underlying trading activity.
Key highlights for the third quarter of 2025, include:
- IRD traded notional increased by 53.6% to $142.8 trillion in the third quarter of 2025, from $93.0 trillion in the third quarter of 2024. Trade count rose by 18.6% to 836.6 thousand from 705.1 thousand over the same period.
- 73.5% of IRD traded notional had a tenor up to and including one year, 18.0% had a tenor between one and five years and 8.5% had a tenor over five years. Based on trade count, 19.6% of transactions had a tenor up to one year, 42.6% had a tenor between one and five years and 37.8% had a tenor over five years.
- Cleared IRD transactions comprised 85.8% of total traded notional and 86.8% of trade count. 94.8% of fixed-for-floating interest rate swaps (IRS), 88.2% of forward rate agreements (FRA), 93.8% of overnight index swaps (OIS) and 12.0% of other IRD traded notional was cleared.
- IRD transactions executed on swap execution facilities (SEFs) represented 53.4% of total traded notional and 77.4% of trade count. 45.3% of fixed-for-floating IRS, 90.3% of FRA, 56.1% of OIS and 31.7% of other IRD traded notional was executed on SEFs.
- Index credit derivatives traded notional grew by 23.0% to $4.6 trillion in the third quarter of 2025 from $3.7 trillion in the third quarter of 2024. Trade count dropped by 20.5% to 74.2 thousand from 93.4 thousand over the same period.
- Security-based credit derivatives traded notional increased by declined by 4.5% to $173.6 billion in the third quarter of 2025 from $181.8 billion in the third quarter of 2024. Trade count fell by 12.7% to 47.7 thousand from 54.2 thousand over the same period.
Click on the attached PDF to read the full report.
Documents (1) for SwapsInfo Third Quarter of 2025 and Year-to September 30, 2025
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