BIS: Market Value of OTC Derivatives at 10 Year Low

The Bank for International Settlements (BIS) produces a monthly email update. Below is the most recent issue that features an article on how over the counter derivatives have now fallen to a ten year low. 

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June 2018 Central banking: trending and cycling  Speaking at Sveriges Riksbank’s 350th anniversary, Agustín Carstens outlines trends and cycles in central banking. Reducing the risk of wholesale payments fraud  Central banks urge wide take-up of a strategy to improve wholesale payments security. Capital treatment for short-term securitisations The Basel Committee finalises the capital treatment for qualifying securitisations, including asset-backed commercial paper. Market value of over-the-counter derivatives at 10-year low The gross market value of outstanding OTC derivatives fell to $11 trillion at end-2017, mainly as interest rate contracts declined. Challenges for monetary policy from global financial cycles At a Swiss National Bank-International Monetary Fund conference, Agustín Carstens highlights the role of movements of major funding currencies’ exchange rates for global financial conditions. (0:49:00 - 1:00:00) More BIS publications  Publication: Implementation monitoring of PFMI: follow-up Level 3 assessment of CCPs' recovery planning, coverage of financial resources and liquidity stress testing Most central counterparties have made progress in meeting international standards on financial risk management, liquidity and recovery, but some still lag. Working Paper: The enduring link between demography and inflation High shares of young and old push up inflation, while a high share of working age population lowers inflation. Working Paper: The cross-border credit channel and lending standards surveys Central banks’ quantitative easing policies bolstered attitudes towards bank lending, but a negative signalling effect undermined their effectiveness and sapped demand for loans.