Tweet
A new BIS publication states that global outstanding derivatives just keep growing in amount
From "Highlights of international banking and financial
market activity" BIS Quarterly Review, June 2008 (pdf)
From "Highlights of international banking and financial
market activity" BIS Quarterly Review, June 2008 (pdf)
Derivatives markets
Exchange-traded derivatives
The first quarter of 2008 saw a large rebound in activity on the international derivatives exchanges. The total turnover based on notional amounts increased from the previous quarter’s $539 trillion to $692 trillion in the latest quarter, the highest turnover on record. This resulted in year-on-year growth of 30%. Most of the increase was observed in derivatives on short-term interest rates. Gains in turnover were also seen in derivatives on long-term interest rates and foreign exchange. In contrast, turnover in derivatives on stock indices showed a slight decline, possibly reflecting overall weakness in stock markets in the first quarter of 2008. Furthermore, turnover in derivatives on commodities – which are not included in the above total since only the numbers of contracts are available – increased substantially, recording a year-on-year growth rate of 52%.
Exchange-traded derivatives
The first quarter of 2008 saw a large rebound in activity on the international derivatives exchanges. The total turnover based on notional amounts increased from the previous quarter’s $539 trillion to $692 trillion in the latest quarter, the highest turnover on record. This resulted in year-on-year growth of 30%. Most of the increase was observed in derivatives on short-term interest rates. Gains in turnover were also seen in derivatives on long-term interest rates and foreign exchange. In contrast, turnover in derivatives on stock indices showed a slight decline, possibly reflecting overall weakness in stock markets in the first quarter of 2008. Furthermore, turnover in derivatives on commodities – which are not included in the above total since only the numbers of contracts are available – increased substantially, recording a year-on-year growth rate of 52%.