The latest data from the Bank for International Settlements over-the-counter (OTC) derivatives statistics shows a significant increase in gross market value and gross credit exposure of OTC derivatives during the first half of 2022 compared to the first half of 2021. The increase in market value was driven by elevated global uncertainty and market volatility related to higher-than-expected inflation and the war in Ukraine.
The gross market value of OTC derivatives contracts increased by 45.4% at mid-year 2022 compared to mid-year 2021. Gross credit exposure – gross market value after netting – rose by 21.5%. At the same time, global OTC derivatives notional outstanding increased modestly by 3.6% at mid-year 2022 compared to mid-year 2021.
Market participants reduced their mark-to-market exposure by 82.0% at mid-year 2022 due to close-out netting. This credit exposure was further reduced by the collateral that market participants posted for cleared and non-cleared derivatives transactions.
Firms posted $359.7 billion of initial margin for cleared interest rate derivatives and single-name and index credit default swaps at all major central counterparties at mid-year 2022.
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 First Half of 2022
Latest
Joint Trades Submit Letter to BCBS Calling for Recalibration of Cryptoasset Prudential Standards
ISDA, in partnership with a coalition of leading global financial trade associations (“Joint Trades”), and with advisory support from Boston Consulting Group (BCG), Ashurst, and Sullivan & Cromwell, submitted a letter to the Basel Committee on Banking Supervision (BCBS). The...
ISDA Response on Common Carbon Data Model
On August 12, ISDA responded to a consultation from the Climate Data Steering Committee (CDSC) on a Common Carbon Credit Data Model. ISDA members believe the Group-of-20 carbon data model initiative is a positive step in addressing data gaps and...
Joint Response on RBA Consultation
On August 11, ISDA and FIA submitted a joint response to the Reserve Bank of Australia (RBA) on its consultation on guidance for Australia’s clearing and settlement facility resolution regime. The associations welcome publication of the draft guidance, which provides...
SwapsInfo H1 2025 and Q2 2025
Interest rate derivatives (IRD) trading activity increased in the first half of 2025, driven by continued interest rate volatility, evolving central bank policy expectations and persistent macroeconomic uncertainty. Trading in index credit derivatives also rose, as market participants responded to...