Notional outstanding OTC contracts near $200 trillion

Overall, interest rate products grew 17% to $142 trillion, but forward-rate agreements, which had expanded by 17% in the first half of the year, slowed to 5% growth. Interest rate options increased by 18%.

The US dollar-denominated swap market grew by 21%, with outstanding contracts rising to $33.4 trillion. Euro-denominated swaps, previously the strongest growing sector, slowed to 10% growth in US dollar terms. They stood at $44.7 trillion at year-end. Yen swaps rose most rapidly by 29% to $17.4 trillion.

Foreign exchange options in particular showed impressive growth, with a 25% rise for the second half of the year following a 42% increase in the first half. Notional contracts involving the US dollar expanded by 30%, while those involving the euro fell by 3%. Yen options grew by 27%.

Equity linked OTC derivatives increased by 35%, compared with 21% in the previous period. The BIS noted that growth in the latter period was spread globally. Previously Europe was the main growth driver.