Investment Banking

Central clearing is 'reshaping' OTC derivatives markets

Clearing houses – seen as key to the stability of the global financial system by post-crisis policymakers – are becoming part of the fabric in the world's sprawling derivatives markets.

Central clearing is 'reshaping' OTC derivatives markets
Photo: iStockPhoto

Clearing houses – seen as key to the stability of the global financial system by post-crisis policymakers – are becoming part of the fabric in the world's sprawling derivatives markets.

According to new data published by the Bank for International Settlements on November 10, around 62% of the $544 trillion in notional outstanding derivatives contracts were being centrally cleared at the end of June.

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