Over-the-counter (OTC) derivatives transactions surged to a record high last year, driven by a notable uptick in currency forwards and interest rate swaps. (Image courtesy of Yonhap)
SEOUL, June 10 (Korea Bizwire) — Transactions of over-the-counter (OTC) derivatives rose to the highest level last year, helped by a sharp increase in currency forwards and interest swaps, data showed Tuesday.
The combined turnover of OTC derivatives, including stock options and interest rate swaps, came to 26,461 trillion won (US$19.41 trillion) last year, up 1,758 trillion won, or 7.1 percent, from a year earlier, according to the data from the Financial Supervisory Service.
By product, currency-related products — currency swaps and currency forwards — amounted to 18,379 trillion won, accounting for 74.4 percent of the total.
Transactions of currency forwards jumped 6 percent on-year to 18,165 trillion won as demand for hedging foreign exchange volatility increased due to the strong U.S. dollar, according to the financial watchdog.
Transactions of currency swaps slipped 7 percent on-year to 1,114 trillion won last year, while those of interest rate swaps rose 9.4 percent to 6,424 trillion won, the data showed.
(Yonhap)
