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Recent Trends in OTC Derivatives Markets --Highlights Observed through OTC Derivatives Statistics--

June 19, 2017
Yasunori Yoshizaki, Makiko Inoue, Kyosuke Shiotani
Financial Markets Department

Various regulatory reforms have been implemented internationally on over-the-counter (OTC) derivatives contracts, drawing on the lessons learned from the 2008 international financial crisis. Utilizing OTC derivatives statistics compiled by the Bank for International Settlement and central banks worldwide, this paper analyzes trends in OTC derivatives markets, which developed during a series of in-progress regulatory reforms, through a comparison of Japanese statistical results with global results. As a result, recent highlights as follows were clarified: (1) amounts outstanding of interest rate and foreign exchange derivatives denominated in USD have been increasing, reflecting the investment activities of Japanese institutional investors; (2) clearing through central counterparties (CCPs) has been advancing, mainly in interest rate derivatives, due to commencement of clearing obligations; and (3) movements to reduce notional amounts outstanding of OTC derivatives by utilizing compression have been expanding.


Bank of Japan Review is published by the Bank of Japan to explain recent economic and financial topics for a wide range of readers. This report, 2017-E-4, is a translation of the original Japanese version, 2017-J-8, published in June 2017. The views expressed in the Review are those of the authors and do not necessarily represent those of the Bank of Japan.

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