According to the data released on 20 May by the BIS, positions in the
global over-the-counter (OTC)
derivatives market recorded a robust expansion in the second half of 2004. Overall amounts
outstanding were up by 12.8%, to $248 trillion at the end of December. The growth in the latter half
of the year was slightly higher than in the first six months, when positions had grown by 11.6%. In
sharp contrast to the trend that had emerged in the previous two semiannual surveys, gross market
values rose noticeably, by 43% to $9.1 trillion as of end-December. Taking account of legally
enforceable bilateral netting agreements does not lead to a lower rate of expansion in gross market
values. The following trends are noted:
- Growth in notional amounts, especially in the interest rate segment
- Business in the swap segment led by European contracts
- Foreign exchange contracts expand despite lacklustre activity in currency options
- Sizeable increase in gross market values
- Growth in OTC derivatives not matched by exchange-traded contracts
- Mixed evolution of concentration measures for OTC markets
In addition, the BIS is publishing for the first time statistics on credit default swaps.
Notional amounts outstanding of credit default swaps were $6.3 trillion at the end of 2004.
Comprehensive explanatory notes are included in the statistical release, defining the coverage of
and terms used to present the statistics.
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