Over-the-counter derivatives markets contracted 8.9% in the second half of 2014, according to data released Thursday by the Bank for International Settlements.
The BIS said the notional amount of outstanding contracts dropped to $630.2 trillion at year-end 2014, from $691.6 trillion in June. On a year-over-year basis, the notional value was down 11.3%.
The gross market value of outstanding contracts, which the BIS says “provide a more meaningful measure of amounts at risk than notional amounts,” rose 19.7% and 3.1% from the prior quarter and year, respectively. The $20.9 trillion gross market value of outstanding contracts in December was the highest since the second half of 2012.