The gross market value of outstanding over-the-counter (OTC) derivatives contracts fell to US$11 trillion at the end of 2017, its lowest level since 2007, according to data released Thursday from the Bank for International Settlements (BIS).
The gross market value of outstanding OTC was US$13 trillion at the end of June 2013..
Gross credit exposures also fell to their lowest level since 2007, the BIS says in a news release, noting that they declined to US$2.7 trillion at the end of 2017.
According to the data, central clearing is continuing to gain traction in the market for credit default swaps (CDS). Fifty-five per cent of outstanding CDS were centrally cleared by the end of 2017, the BIS says, up from 51% in the middle of the year. Bilateral contracts between derivatives dealers declined during the period, as a greater share of activity shifts to central clearing.
In the OTC interest rate derivatives markets, the share of central clearing came in at about 75% of outstanding contracts at the end of 2017. The share of cleared positions was highest for derivatives denominated in Canadian dollars, at 88%, and lowest for euros, at 72%.