Over-the-counter derivatives notional amounts fell over the six months to end-December, continuing a seasonal pattern observed since 2016. The fair values of outstanding contracts also declined for the tenth consecutive quarter.

Data from the Bank for International Settlements shows that notionals collapsed 9% to $544.4 trillion over the second half of last year, and fair values 6% to$9.7 trillion.

The overall drops were led by interest rate derivatives. Outstanding notionals for these