Reply #26: Five US Dealers Account For 37% Of OTC Derivatives Market [View All]

[Demeter]

http://online.wsj.com/article/BT-CO-20101024-705219.html?mod=dist_smartbrief

-The International Swaps and Derivatives Association said Monday that the five largest U.S. dealers hold 37% of the outstanding volume of privately negotiated derivatives contracts globally.

At its annual regional conference in Hong Kong, ISDA said the notional amount of outstanding interest rate, credit, and equity derivatives as of June 30 was $466.8 trillion, up 1% from the end of 2009. Of the total, five U.S. dealers hold $172.3 trillion.

That figure takes into account the global volume of over-the-counter derivatives, said the association, adding that when the 95% of the OTC market is said to be concentrated among those five dealers, that holds true only for contracts among U.S. bank holding companies.

The volume of outstanding contracts reported by the 14 largest international derivatives dealers, known as the G14, was $354.6 trillion at the half-year point, after eliminating double counting. That represents 82% of the total volume of interest rate trades reported to ISDA, 90% of credit derivatives and 86% of equity derivatives...