Netting
Global:
US: Figures below are from SECOND QUARTER, 2008
- Total derivatives (notional amount): $182.2 trillion (SECOND QUARTER, 2008)
- Interest rate contracts: $145.0 trillion (80%)
- Foreign exchange contracts: $18.2 trillion(10%)
- 2008 Second Quarter, banks reported trading revenues of $1.6 billion
- Total number of commercial banks holding derivatives: 975
According to Bank for International Settlements "$516 trillion at the end of June 2007"
Positions in the OTC derivatives market have increased at a rapid pace since the last triennial survey was undertaken in 2004. Notional amounts outstanding of such instruments totalled $516 trillion at the end of June 2007, 135% higher than the level recorded in the 2004 survey (Graph 4). This corresponds to an annualised compound rate of growth of 33%, which is higher than the approximatively 25% average annual rate of increase since positions in OTC derivatives were first surveyed by the BIS in 1995. Notional amounts outstanding provide useful information on the structure of the OTC derivatives market but should not be interpreted as a measure of the riskiness of these positions. Gross market values, which represent the cost of replacing all open contracts at the prevailing market prices, have increased by 74% since 2004, to $11 trillion at the end of June 2007. (page 28, http://www.bis.org/publ/qtrpdf/r_qt0712.pdf)
Read more about this topic: Derivatives Market