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International finance through the lens of BIS statistics: derivatives markets

Author

Listed:
  • Stefan Avdjiev
  • Patrick McGuire
  • Goetz von Peter

Abstract

Financial derivatives are a linchpin of the global financial system, enabling market participants to hedge exposures, engage in speculative strategies and arbitrage across markets. This article reviews how the BIS derivatives statistics can be used to examine the size and structure of derivatives markets for different risk categories. Through the lens of these statistics, the article sheds light on key transformations in derivatives markets, including the transition to risk-free rates in interest rate derivatives and the growing use of foreign exchange derivatives to facilitate global portfolio flows. These developments underscore the evolving data needs of policymakers and analysts to track emerging vulnerabilities.

Suggested Citation

  • Stefan Avdjiev & Patrick McGuire & Goetz von Peter, 2025. "International finance through the lens of BIS statistics: derivatives markets," BIS Quarterly Review, Bank for International Settlements, December.
    • Handle: RePEc:bis:bisqtr:2512d
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    References listed on IDEAS

    as
    1. Torsten Ehlers & Karamfil Todorov, 2025. "Goodbye Libor, hello basis traders: unpacking the surge in global interest rate derivatives turnover," BIS Quarterly Review, Bank for International Settlements, December.
    2. Lawrence L Kreicher & Robert Neil McCauley & Philip Wooldridge, 2017. "The bond benchmark continues to tip to swaps," BIS Quarterly Review, Bank for International Settlements, March.
    3. Robert N McCauley, 2001. "Benchmark tipping in the money and bond markets," BIS Quarterly Review, Bank for International Settlements, March.
    4. Gabriele Galati & Alexandra Heath & Patrick McGuire, 2007. "Evidence of carry trade activity," BIS Quarterly Review, Bank for International Settlements, September.
    5. Torsten Ehlers & Egemen Eren, 2016. "The changing shape of interest rate derivatives markets," BIS Quarterly Review, Bank for International Settlements, December.
    6. Jacob Gyntelberg & Philip Wooldridge, 2008. "Interbank rate fixings during the recent turmoil," BIS Quarterly Review, Bank for International Settlements, March.
    7. Philip D Wooldridge, 2001. "The emergence of new benchmark yield curves," BIS Quarterly Review, Bank for International Settlements, December.
    8. Wenqian Huang & Karamfil Todorov, 2022. "The post-Libor world: a global view from the BIS derivatives statistics," BIS Quarterly Review, Bank for International Settlements, December.
    9. Andreas Schrimpf & Vladyslav Sushko, 2019. "Beyond LIBOR: a primer on the new benchmark rates," BIS Quarterly Review, Bank for International Settlements, March.
    10. Tsvetelina Nenova & Andreas Schrimpf & Hyun Song Shin, 2025. "Global portfolio investments and FX derivatives," BIS Working Papers 1273, Bank for International Settlements.
    11. Claudio Borio & Robert Neil McCauley & Patrick McGuire, 2017. "FX swaps and forwards: missing global debt?," BIS Quarterly Review, Bank for International Settlements, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Wenqian Huang & Ingomar Krohn & Vladyslav Sushko, 2025. "Global FX markets when hedging takes centre stage," BIS Quarterly Review, Bank for International Settlements, December.
    2. Shin, Wonmun, 2025. "Housing and consumption volatility: the role of rental price rigidity," European Economic Review, Elsevier, vol. 180(C).
    3. Swapan-Kumar Pradhan & Eswar Prasad & Előd Takáts & Judit Temesvary, 2026. "Dollarisation waves: new evidence from a comprehensive international bond database," BIS Papers, Bank for International Settlements, number 165, May.

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    More about this item

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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