Notional outstanding OTC contracts near $200 trillion
The total estimated notional amount of outstanding over-the-counter derivatives contracts stood at $197.1 trillion at the end of December, according to data released today by the Bank for International Settlements (BIS).
This represents a 16% rise in the value of OTC outstandings during the second half of 2003 versus a 3.8% rise in the notional amounts of contracts held at organised exchanges. All categories saw rises, with interest rate swaps continuing to be the largest single group of products in the OTC market, growing 18% to $111 trillion in notional amounts outstanding - 56% of the overall OTC market.Overall, interest rate products grew 17% to $142 trillion, but forward-rate agreements, which had expanded by 17% in the first half of the year, slowed to 5% growth. Interest rate options increased by 18%.
The US dollar-denominated swap market grew by 21%, with outstanding contracts rising to $33.4 trillion. Euro-denominated swaps, previously the strongest growing sector, slowed to 10% growth in US dollar terms. They stood at $44.7 trillion at year-end. Yen swaps rose most rapidly by 29% to $17.4 trillion.
Foreign exchange options in particular showed impressive growth, with a 25% rise for the second half of the year following a 42% increase in the first half. Notional contracts involving the US dollar expanded by 30%, while those involving the euro fell by 3%. Yen options grew by 27%.
Equity linked OTC derivatives increased by 35%, compared with 21% in the previous period. The BIS noted that growth in the latter period was spread globally. Previously Europe was the main growth driver.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Markets
Dealers bullish on upcoming offshore CGB futures relaunch
Better contracts and deeper foreign interest in China bonds set to spur uptake, but launch date unclear
Regulatory crackdown puts Korea autocalls in deep freeze
Mis-selling fears see distributors pull back, leading to 40% issuance fall in a month
Invesco more than triples size of its FX options book
Counterparty Radar: Manager’s portfolio exceeded $5bn notional in Q4
Volatility shape-shifters: arbitrage-free shaping of implied volatility surfaces
Manipulating implied volatility surfaces using optimal transport theory has several applications
BGC forming consortium to take on CME Group’s rates empire
Banks and PTFs are being offered a stake in FMX, which has CFTC approval to launch a futures exchange
RMB vol returns as hedge funds take barrier trade profits
Unwinds of exotic positions saw vol jump 72% after surprise PBoC move last week
‘Fear gauge’ within expectations, some say
Several options specialists dismiss claims that structured products are distorting the Vix
Brazil readies long-dated FX hedging scheme for green projects
Development bank IDB will lend its credit rating to unlock cheaper USD/BRL hedges out to 25 years
Most read
- Top 10 operational risks for 2024
- Regulators’ FRTB estimates based on faulty premise – industry study
- Top 10 op risks: AI fears drive cyber risk to record high