Swaps notional falls to nine-year low

摘要

The over-the-counter derivatives market shrank to its smallest since 2006 in the second half of last year, as persistent low interest rates dampened demand for hedging and market participants increased efforts to cancel matching trades. The notional amount of outstanding contracts fell to US$493trn in the second half of 2015, from US$552trn at the end of June, a decline of 11%, according to the latest biannual report from the Bank for International Settlements. The fall in notional amounts was accompanied by a sharp drop in gross market values, which provide a more meaningful measure of amounts at risk. Gross market values decreased by 6% in the second half to US$14.5trn, the lowest level since 2007. The decline was concentrated in interest rate swaps, as low rates around the world led to reduced demand for speculation and hedging.