ISDA's Q4 2018 Updates for Interest Rate Derivatives

In light of the efforts to replace LIBOR across all five jurisdictions, we’d like to pass along some key highlights from ISDA’s quarterly review of trading activity for interest rate derivatives (IRD):

• Both traded notional and trade count rose by 21.9% and 13.5% respectively in 2018.
• Single currency fixed-for-floating interest rate swaps (IRS) increased 25%
• Overnight index swaps (OIS) traded notional grew by 12.7%
• 88.1% of total traded notional were cleared transactions, very similar to 2017.
• Swap execution facility (SEF)-traded swaps were 55.8% of total traded notional, again very similar to 2017.

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Epsilon is a vibrant capital markets technology solutions and services firm serving small and medium-sized financial institutions such as regional banks, Government-Sponsored Enterprises, and Federal Home Loan Banks. The Group’s deep expertise embraces every aspect of software development, products, data, technologies, and consulting. Epsilon offers ETS and Principia Analytic System as licensed products, and various innovative bespoke solutions across a broad set of capital markets domains. Epsilon also offers a full range of consulting services, including implementation, advisory, analytics, risk management, accounting, and data modeling.