Growth of OTC contracts slows

Rising commodity prices and a worldwide rally in equity prices in the second half of last year have increased the demand for over-the-counter derivatives in these sectors, according to the latest statistics released by the Bank for International Settlements (BIS). However, overall growth in contracts slowed compared with previous periods, due to a tailing-off of demand for interest rate products.

In the final six months of 2005, demand for OTC derivatives grew by 5%, taking the notional