Latest BIS data shows slight rise in OTC derivatives activity


Bank of international Settlements (BIS) has just released OTC derivatives market activity in the second half of 2010.

Headlines:

  • Notional outstanding (OTC) derivatives rose by 3% in the second half (following a 4% decline in first half), reaching $601 trillion by the end of December 2010
  • Notional amounts outstanding of credit default swaps (CDS) continued to contract, falling by 1% after the 7% decline in the first half, while outstanding equity-linked contracts shrank by 10%
  • Gross market values of all OTC contracts went down by 14%, driven mainly by the 17% decline in the market value of interest rate contracts.
  • CDS market values fell by 19%
  • Overall gross credit exposure dropped by 7% to $3.3 trillion, compared with a 2% increase in the first half of 2010

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