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BIS: OTC Derivatives Market Volume Shrank In 2H 2012(from 647 tln to 704 tln)
WSJ ^ | 05/09/12

Posted on 05/13/2012 12:51:15 AM PDT by TigerLikesRooster

BIS: OTC Derivatives Market Volume Shrank In 2H 2012

LONDON (Dow Jones)--The outstanding volume of over-the-counter derivatives shrank by almost 10% in the second half of last year, according to data released Wednesday by the Bank for International Settlements.

The BIS said notional amounts outstanding fell to $647.76 trillion by the end of last year, from $706.88 trillion at the end of June, due largely to declines in the number of interest-rate swaps, credit-default swaps and equity-linked contracts.

Interest-rate swaps accounted for more than three-quarters of the total notional volumes outstanding.

At the same time, the gross market value of all contracts outstanding, which is a way of measuring what it would cost to replace those contracts, rose by 35% to $27.29 billion.

That was caused almost exclusively by changes in the market value of interest-rate swap contracts reflecting the sharp increase in European bond market volatility in the latter half of 2011 as the euro-zone debt crisis engulfed Spain and Italy, two of the world's largest issuers of bonds. The jump in gross market value was the largest since the second half of 2008, when the collapse of U.S. investment bank Lehman Brothers Holdings Inc. deepened an international credit squeeze.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: derivative; otcderivative

1 posted on 05/13/2012 12:51:24 AM PDT by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

P!


2 posted on 05/13/2012 12:52:37 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster

I suppose we can assume that the volume of over-the-counter derivatives will continue to decline, and possibly in a manner like that of a large boulder traveling downhill - gathering speed!


3 posted on 05/13/2012 1:15:20 AM PDT by SatinDoll (NO FOREIGN NATIONALS AS OUR PRESIDENT)
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To: TigerLikesRooster

Only 90% to go!


4 posted on 05/13/2012 5:22:05 AM PDT by steve8714 (God bless those in uniform, who labor for true peace.)
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To: SatinDoll
Correction: (from 647 tln to 704 tln) (from 704 tln to 647 tln)
5 posted on 05/13/2012 6:46:05 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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