SwapsInfo First Half of 2019 and Second Quarter of 2019 Review

The ISDA SwapsInfo Review provides analysis of interest rate derivatives (IRD) and credit derivatives trading activity. The report provides a breakdown of cleared, non-cleared, swap execution facility (SEF) and off-SEF traded notional and trade count, as well as product taxonomy and currency information.

Key highlights for the first half of 2019 include:

  • IRD traded notional increased by 9.8% to $138.0 trillion from $125.7 trillion in the first half of 2018. Trade count grew by 6.7% over the same period. Single currency fixed-for-floating interest rate swaps (IRS) traded notional increased by 2.4%, while forward rate agreements (FRAs) and overnight index swaps (OIS) traded notional grew by 19.3% and 16.0%, respectively, in the first half of 2019 compared with the first half of 2018.
  • Cleared IRD transactions represented 88.9% of total traded notional, compared with 88.1% in the first half of 2018. About 96% of fixed-for-floating IRS, 100% of FRA, 95% of OIS, and 25% of other IRD traded notional was cleared in the first half of 2019.
  • SEF-traded swaps represented 58.8% of total traded notional, compared with 56.3% in the first half of 2018. About 59% of fixed-for-floating IRS, 82% of FRA, 32% of OIS and 37% of other IRD traded notional was executed on SEFs in the first half of 2019.
  • Credit derivatives traded notional decreased by 11.7% to $4.4 trillion from $4.9 trillion in the first half of 2018. Trade count fell by 5.1% over the same period. CDX HY traded notional declined by 8.6% to $719.5 billion from $786.8 billion in the first half of 2018, and CDX IG traded notional decreased by 2.2% over the same period to $1.6 trillion from $1.7 trillion. iTraxx Europe traded notional decreased by 13.0% to $843.4 billion in the first half of 2019 from $969.7 billion in the first half of 2018.
  • Cleared transactions represented 80.6% of total traded notional, compared with 83.4% in the first half of 2018. About 98% of CDX HY, 99% of CDX IG, 95% of iTraxx Europe and 35% of other credit derivatives traded notional was cleared.
  • SEF-traded credit derivatives represented 77.0% of total traded notional, compared with 79.3% in the first half of 2018. About 97% of CDX HY, 98% of CDX IG, 91% of iTraxx Europe and 25% of other credit derivatives traded notional was executed on SEFs.

Click on the attached PDFs to read the summary and/or full report.

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