Market participants scaled up positions in exchange-traded interest rate derivatives by a small amount in the third quarter, with the combined open interest in options and futures contracts rising 2.4%, following a 12% drop in the second quarter.

The increase was driven by heightened interest in longer-dated contracts. Open interest for these instruments stood at $3.8 trillion at end-September,$268 billion (7.7%) higher than at end-March. Shorter-dated contract open interest also increased, by