The notional amount of over-the-counter derivatives trades outstanding bounced back to reach $605 trillion by the end of June, according to figures released by the Bank for International Settlements.
The figure is up 10% on the level recorded at the end of 2008. A previous survey in May had reported a provisional notional outstanding amount of $592 trillion at the end of last year - a fall of 13.4% compared with six months before.
The latest survey revises the extent of last year's fall, putting the notional value of trades at the end of last year at $547 trillion. This would represent a plunge of almost 20% compared with mid-2008.
Despite the rebound in notional recorded in the latest survey, the total market value of trades decreased by 21% to $25 trillion at the end of June. Gross credit exposures arising from OTC derivatives trades also fell to $3.7 trillion, from a peak of $4.5 trillion in the previous survey.
In credit default swaps (CDSs), the notional value of outstanding contracts fell by 14% to $36 trillion at the end of June. The total market value of CDS trades fell by 42%.
In interest rates, the notional value of trades outstanding went up by 13% to $437 trillion. At the same time, the gross market value of trades decreased by 14% to $15 trillion.
In foreign exchange derivatives, an uptick in activity led notional outstanding to rise 10% to $49 trillion at the end of June. But the survey reports the total market value of forex derivatives decreased by 31% to $2.5 trillion. Similarly, the notional value of equity derivatives trades inflated 7% to reach $6.6 trillion by the end of June, while the total market value fell 16% compared with the end of 2008.
Elsewhere, the notional outstanding value of commodity derivatives contracts continues to decline in the latest survey, slipping 2% to $3.7 trillion. But this figure has slowed since the last survey in May, which showed commodity derivatives notional plummeting by 71% at the end of 2008. According to the latest survey, the total market value of commodity derivatives trades had contracted 17% by the end of June.
More on Derivatives
Real money firms have enough collateral to stick with swaps, buy-side exec argues
Collateral transformation facilities being lined up - but are not being used
Onshore mandates give Asian economies the edge in developing forex clearing
International players have concerns over first RMB oil contract
Sign up for Risk.net email alerts
Nominated for two technology awards
Nominated for post trade technology award
Sponsored webinar: Collateral and counterparty tracking
Isda directors warn on fragmentation, access and liquidity - but expect problems to pass
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.