The over-the-counter derivatives market grew in the first half of 2009, reports the Bank for International Settlements.

The BIS says that at the end of June, notional amounts of all types of OTC contracts rebounded somewhat to stand at US$605 trillion, up 10% from the level six months before.

At the same time, the BIS reports that gross market values decreased by 21% to $25 trillion.

Gross credit exposures fell by 18% from a peak at the end of 2008 of $4.5 trillion to $3.7 trillion, it says.

Additionally, notional amounts of credit default swap contracts continued to decline, albeit at a slower pace than in the second half of 2008, and CDS gross market values shrank by 42%, following an increase of 60% during the previous six-month period, it adds.

IE