Australian OTC Derivatives Markets: Insights from the BIS Semiannual Survey
OTC derivatives; Australian derivatives markets; derivatives markets reform; BIS semi-annual survey; BIS semiannual survey; derivatives market size; notional principal outstanding
The Reserve Bank of Australia recently commenced surveying participants in Australian over-the-counter (OTC) derivatives markets as part of the Bank for International Settlements’ (BIS) semiannual global OTC derivatives survey. Australia’s contribution to the survey complements regulatory efforts to improve the resilience and transparency of Australia’s OTC derivatives markets. It also facilitates a higher frequency comparison of the Australian and foreign OTC derivatives markets. The survey results show that the structure of the Australian market is broadly similar to that of global markets: Australia’s market is primarily an interbank market, with most activity in interest rate and foreign exchange derivatives contracts.