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1. OTC derivatives statistics at end-June 2014

 Highlights from the latest BIS semiannual survey of over-the-counter (OTC) derivatives markets:

  OTC derivatives markets contracted slightly in the first half of 2014. The notional amount of

outstanding contracts totalled $691 trillion at end-June 2014, down by 3% from $711 trillion

at end-2013 and back to a level similar to that reported at end-June 2013.

  The gross market values of outstanding OTC derivatives continued to trend downwards in the

first half of 2014. Gross market values stood at $17 trillion at end-June 2014, down by 7%

from $19 trillion at end-2013 and 14% from $20 trillion at end-June 2013. Whereas in 2013

the decline had been concentrated in interest rate derivatives, in the first half of 2014 the

gross market value of foreign exchange derivatives also fell significantly.

  In credit default swap (CDS) markets, central clearing made further inroads. Contracts with

central counterparties accounted for 27% of notional CDS outstanding at end-June 2014, up

from 23% one year earlier. Bilateral netting agreements reduced the net market value of

outstanding CDS contracts, which provide a measure of exposure to counterparty credit risk,

to 23% of their gross market value.

Recent developments in OTC derivatives markets are summarised in Section 2 (pp 2–6).

Definitions of terms and concepts are provided in Section 3 (pp 7–13). Tables with the latest data are

presented in Section 4 (pp 14–25). Additional data, including time series, are available on the BIS

website (www.bis.org/statistics/derdetailed.htm).

The OTC derivatives statistics at end-December 2014 will be released on or before

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