The latest data from the Bank for International Settlements (BIS) over-the-counter (OTC) derivatives statistics shows a modest increase in notional outstanding of OTC derivatives during the first half of 2024 compared to the same period in 2023. While interest rate derivatives (IRD) notional outstanding remained relatively flat year-over-year, foreign exchange (FX), equity and commodity derivatives notional outstanding rose.
The gross market value of IRD derivatives declined amid a shift in central bank interest rate policy. Gross credit exposure also fell during the period.
By mid-year 2024, the notional outstanding of global OTC derivatives rose by 2.4% compared to mid-year 2023. In contrast, OTC derivatives gross market value fell by 14.0% and gross credit exposure, representing gross market value after netting, declined by 20.2%.
Total mark-to-market exposure dropped by 83.5% due to close-out netting. Credit exposure was further reduced by the collateral market participants posted for cleared and non-cleared derivatives.
Market participants posted $364.4 billion of required initial margin (IM) for cleared IRD and credit default swap (CDS) transactions at all major central counterparties (CCPs) at mid-year 2024 compared to $389.0 billion at mid-year 2023.
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 2024
Latest
SwapsInfo Full Year 2024 and Q4 2024
Interest rate derivatives (IRD) trading activity increased in 2024, driven by interest rate volatility, adjustments in central bank policies and shifting market expectations on inflation and economic growth. Index credit derivatives also saw increased activity, as measured by traded notional,...
ISDA Response on UK MIFID Transaction Reporting
On February 14, ISDA submitted a response to the UK Financial Conduct Authority’s (FCA) discussion paper 24/2 on improving the UK transaction reporting regime under the UK Markets in Financial Instruments Directive (MIFID) framework. The FCA indicated it is making...
Saudi Capital Markets Event Welcome Remarks
Capital Markets & the Kingdom of Saudi Arabia February 19, 2025 Opening Remarks Scott O’Malia ISDA Chief Executive Good morning, everyone. I’d like to add my thanks to Saudi Tadawul Group for working with us on this event, as...
Appropriate Capital Regs Needed for Liquid Markets
The Basel III capital framework was designed to strengthen the regulation, supervision and risk management of banks in response to weaknesses exposed by the global financial crisis. As the last components of the framework are finalized and implemented around the...