The global over-the-counter derivatives market contracted almost 4%, to $583 trillion in the first half of this year, compared with a 2% rise in the second half of 2009, according to survey results from the Bank for International Settlements on Monday.
Overall, the OTC market has grown 15% during the past three years. At the end of 2009, the notional value of contracts outstanding was $604 trillion. A "surge" of activity through the financial crisis, and the ensuing sovereign debt crisis and currency depreciations, was followed by a pullback this year, the BIS said.
The gross market value of those contracts rose 15% in the first half, to $25 trillion, and 122% over the past three years, the BIS said.
Interest rate derivatives have seen by far the most growth, rising 25% over the past three years and 0.4% over the first half to $478 trillion. By comparison, currency derivatives rose 8%, to $53 trillion in the first half; equity derivatives rose 5.4% in the first half, to $6.3 trillion; credit derivatives fell 7.4%, to $30.2 trillion and commodities derivatives fell 3.1%, to $2.85 trillion.