Bulletin – December Quarter 2016 Developments in Foreign Exchange and OTC Derivatives Markets Abstract

The Bank for International Settlements (BIS) conducts the Triennial Central Bank Survey of Foreign Exchange and Over-the-counter (OTC) Derivatives Markets Activity (Triennial Survey) to collect information about the size and structure of these markets. The 2016 survey results suggest that global activity in these markets declined since the previous survey, partly reflecting higher-than-usual activity in April 2013 and exchange rate movements. Over the same period, activity in the Australian foreign exchange market declined markedly in US dollar terms, but only modestly in Australian dollar terms. For Australian banks, the value of OTC derivatives outstanding continued to increase, though gross credit exposure declined.

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