ISDA publishes research note on concentration of OTC Derivatives among Major Dealers

08 November 2010

According to the ISDA Market Survey for Mid-Year 2010, the largest U.S.-based derivatives dealers account for 37 per cent of the global total notional amount outstanding of derivatives.

 The largest fourteen derivatives dealers (G14) hold 82 per cent of the total notional amount outstanding.

Broken out by products, the G14 group holds 82 per cent of interest rate derivatives, 90 per cent of credit default swaps, and 86 per cent of equity derivatives. Evaluated by traditional measures, concentration of notional amounts among major dealers appears to be low.

ISDA reported that as of June 30, 2010, the combined notional amount outstanding of over-the-counter interest rate, credit, and equity derivatives was $466.8 trillion after adjustment for double counting of inter-dealer transactions. Of the total amount, 93 per cent was interest rate derivatives, 6 per cent was credit derivatives, and 1 per cent was equity derivatives. Seventy-one ISDA Primary Member firms in twenty countries responded to the survey; all major derivatives dealers participated.

Research notes

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