The recent enormous growth of exchange-traded markets has been fuelled in part by a shift away from OTC derivatives due to counterparty credit risk concerns and the introduction of new accounting standards, according to the latest Quarterly Review from Bank for International Settlement (BIS).
BIS said that while short-term factors such as changes to US monetary policy contribute to expansion of exchange-traded markets, recent growth has remained buoyant even when US policy rates remained stable, suggesting that the steady rise in business may be due to longer-term factors such as credit risk concerns and accounting changes.