The gross market value for all over-the-counter (OTC) market derivatives together declined by 15 per cent in the second half of 2009, according to a study released late today by the Bank for International Settlements, according to dpa. The Basel-based so-called "bank of central banks" said the decline followed a 22 per cent contraction in the first half of last year. According to a BIS chart, the gross market value - defined as the sums of the absolute values of all open contracts - was 21.58 trillion dollars. An increase of 2 per cent was noted on the notional amounts outstanding for OTC derivatives - the financial instruments traded outside of exchanges - in the second half of 2009, bringing the sum to 614.67 trillion dollars at the end of December. In the first half, the notional amounts - or face amounts - grew by 10 per cent. The increase was not, however, seen in two risk categories: commodities and credit default swaps (CDS), which receded by 21 per cent and 9 per cent, the BIS said. In the sovereign debt markets, CDS positions were up 10 per cent in the second half of the year. In a steep drop, CDS market values at the end of 2009 stood at 35 per cent of the peak reached at end-2008. The statistics for the first half of 2010 will be made available by November 15, the BIS said.
