Notwithstanding the ongoing turmoil in global credit markets, the over-the-counter derivatives markets continued to enjoy steady growth in the second half of 2007, according to the latest data from the Bank for International Settlements.

The BIS reported that the notional amounts of all categories of OTC contracts rose by 15% to US$596 trillion at the end of December. Growth remained particularly strong in the credit segment, where the notional amounts of outstanding credit default swaps increased by 36% to US$58 trillion.

Expansion in the foreign exchange, interest rate and commodities segments was also relatively robust, recording double digit growth rates, the BIS said. However, the equity segments showed a negative growth rate.

Gross market values, which measure the cost of replacing all existing contracts, increased by 30% and reached US$15 trillion in total at the end of December 2007. Gross credit exposures, after netting agreements, also rose by 22% to US$3.3 trillion.