
Growth of OTC contracts slows to 5%, say BIS
But interest rate products, which with a notional value of $215 trillion at the end of 2005 make up by far the biggest OTC contract type, grew by only 5%. According to the BIS, these increases were modest compared with the semi-annual double-figure increases in demand for interest rate OTC contracts in the first half of the decade.
“It is still too early to say whether this slowdown in growth is temporary or of a more permanent nature, perhaps related to the maturing of the market,” said the BIS report. “What is clear is that the rates of growth in the OTC market outstrip those recorded in organised derivatives exchanges.”
The overall growth of the notional value of outstanding over-the-counter derivatives has been slowing somewhat in the previous two reports. After continuous double-figure increases, they grew by 8% in the first half of last year, down from 14% in the second half of 2004.
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