Big US banks cut OTC notionals by $10trn in Q3
Cleared notionals made up 54% of aggregate total notionals outstanding
The eight US global systemically important banks (G-Sibs) shrunk their over-the-counter swap portfolios by 4.3% in notional terms in the third quarter of the year.
Citi cut its derivatives book the most, by 9% to $42.5 trillion, followed by Goldman Sachs, which reduced notionals by 8% to $43.3 trillion.
Morgan Stanley’s notionals fell 4% to $34.9 trillion, Bank of America’s 3% to $37.4 trillion and JP Morgan’s 0.3% to $51.6 trillion.
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