On 11 May 2010, the Bank for International Settlements (BIS) published a paper setting out OTC derivatives market activity for the second half of 2009. Key developments in this period are:

  • Notional amounts of all types of over-the-counter derivatives contracts outstanding increased by 2 per cent during the second half of 2009. Interest rate and foreign exchange derivatives accounted for most of this increase. However, overall gross market values decreased by 15 per cent, following a contraction of 22 per cent in the previous six month period. Gross credit exposures fell by 6 per cent, following an 18 per cent decline in the previous period.
  • Notional amounts outstanding of credit default swaps (CDS) contracts continued to decline while positions on commodities also receded. CDS gross market values fell by 40 per cent, a similar rate of decline to that seen in the first half of the year.

View OTC derivatives market activity in the second half of 2009, 11 May 2010