OTC derivatives market activity in the first half of 2014

06 November 2014

OTC derivatives markets contracted slightly in the first half of 2014. The notional amount of outstanding contracts totalled $691 trillion at end-June 2014, down by 3% from $711 trillion at end-2013 and back to a level similar to that reported at end-June 2013.

The gross market values of outstanding OTC derivatives continued to trend downwards in the first half of 2014. Gross market values stood at $17 trillion at end-June 2014, down by 7% from $19 trillion at end-2013 and 14% from $20 trillion at end-June 2013. Whereas in 2013 the decline had been concentrated in interest rate derivatives, in the first half of 2014 the gross market value of foreign exchange derivatives also fell significantly.

In credit default swap (CDS) markets, central clearing made further inroads. Contracts with central counterparties accounted for 27% of notional CDS outstanding at end-June 2014, up from 23% one year earlier. Bilateral netting agreements reduced the net market value of outstanding CDS contracts, which provide a measure of exposure to counterparty credit risk, to 23% of their gross market value.

Developments in the latest OTC derivatives statistics, including tables with the latest data, are summarised in the statistical release. Additional details and historical data are available on the BIS website. OTC derivatives statistics at end-December 2014 will be released on or before 15 May 2015.

Queries regarding the OTC derivatives statistics may be directed to statistics$bis.org (where "$" denotes "@").