US banks hold $91 trillion in derivatives, says OCC

The notional volume of derivatives held by US banks rose by $3.2 trillion to $91.1 trillion in the first quarter of the year, according to the US Office of the Comptroller of the Currency (OCC).

Most of this volume represented interest rate contracts, up $2.5 trillion to $78 trillion, while foreign exchange contracts were down $94 billion to $8.5 trillion. Credit derivatives volume increased by $777 billion to $3.1 trillion. Five banks still dominate the market, holding 96% of the total notional volume.

A total of 91% of contracts were traded over the counter (OTC) and 9% exchange-traded. "OTC contracts tend to be more popular with banks and bank customers because they can be tailored

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