SEOUL– The transactions of over-the-counter (OTC) derivatives expanded 6.6 percent on-year in 2021, as demand for such products rose amid increased volatility, data showed Wednesday.
The combined turnover of OTC derivatives, such as interest rate swaps and currency forwards, stood at 18,146 trillion won (US$14.4 trillion) in 2021, up from 17,019 trillion won a year earlier, according to the data from the Financial Supervisory Service (FSS).
Of the total, transactions of currency forwards took the largest portion of 75.9 percent, or 13,776 trillion won.
Transactions of interest rate swaps accounted for 22.7 percent at 4,117 trillion won. The jump came amid volatility in interest rates, incurred by the hawkish rate hikes by major economies.
Transactions of securities-related OTC took up 0.6 percent at 194 trillion won.
Of the total OTC derivative transactions, banks accounted for the lion’s share at 78.9 percent, or 14,323 trillion won, followed by securities firms’ 215.3 percent, or 780 trillion won.
Source: Yonhap News Agency