The International Swaps and Derivatives Association (ISDA) has estimated the size of the global over-the-counter (OTC) derivatives market to be nearly $401 trillion, The Wall Street Journal reports. In late 2009, the Bank for International Settlements (BIS) had estimated the market to be worth nearly $583 trillion.
The ISDA’s estimates includes $364 trillion of interest-rate derivatives, $27 trillion of credit derivatives, $3 trillion of commodity derivatives and $7 trillion of equity derivatives contracts. As per ISDA, BIS double-counted some transactions cleared by LCH.Clearnet and it included $63 trillion of currency derivatives, where many analysts would have excluded these transactions.
Click here for the story from The Wall Street Journal.