For the purposes of its survey, Isda took the market to comprise of credit default swaps (CDS), baskets and portfolio transactions indexed to single names, indexes, baskets, and portfolios.
The credit derivative market’s 128% year-on-year growth rate eclipsed, in proportionate terms, growth in other markets. Notional outstanding volume for equity derivatives grew to $4.83 trillion – equivalent to year-on-year growth of 28%.
The notional principal outstanding volume of interest rate derivatives, including swaps, swaptions and cross-currency swaps, grew by nearly 10% during the first half of 2005 to reach $201.4 trillion.
Isda surveyed 101 firms on a confidential basis. It adjusted notional principal outstanding amounts for double counting of inter-dealer transactions.