First fall in OTC notional, says BIS

The total outstanding notional of over-the-counter derivatives contracts fell 13.4% to $592 trillion at the end of December 2008, from $683.7 trillion at the end of June 2008, according to statistics released by the Bank for International Settlements (BIS). The drop marks the first decline since 1998, when the BIS started to report on the OTC market.

The volume of outstanding credit default swap (CDS) contracts fell 26.9% to $41.9 trillion, from $57.3 trillion in June 2008. However, the gross ma