Key Trends in the Size and Composition of OTC Derivatives Markets in the First Half of 2025

The latest data from the Bank for International Settlements (BIS) over-the-counter (OTC) derivatives statistics shows an increase in notional outstanding of OTC derivatives during the first half of 2025 compared to the first half of 2024. Notional outstanding rose across all major asset classes, including interest rate derivatives (IRD), foreign exchange (FX), equity and commodity derivatives.

Heightened uncertainty about trade, monetary policy outlook and geopolitical developments supported increased hedging activity, contributing to higher notional outstanding across major derivatives asset classes. After declining in 2023 and 2024, gross market value and gross credit exposure also increased in the first half of 2025.

Global OTC derivatives notional outstanding grew by 15.9% in the first six months of 2025 compared to the same period in 2024. Gross market value increased by 29.5%, while gross credit exposure, which represents gross market value after netting, rose by 5.1%.

Close-out netting continued to significantly reduce mark-to-market exposures, lowering total exposure by 86.4% at mid-year 2025. Credit exposure was further mitigated through collateral posted for both cleared and non-cleared transactions.

Initial margin (IM) posted for cleared IRD and credit default swaps (CDS) at major central counterparties (CCPs) reached $430.4 billion at mid-year 2025 compared to $364.4 billion a year earlier.

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