A new ISDA study, released today, concludes that legitimate hedging activities of end-users make up 65% of the total OTC derivatives market in the interest rate asset class. This is far more than prior authorities have suggested.
Direct Swap was created to serve this significant market segment.
65% of over-the-counter interest rate derivatives market turnover involves an end user on one side and a reporting dealer on the other. These participants, comprising non- dealer financial institutions and non-financial customers, use derivatives primarily to hedge risks and reduce volatility on their balance sheets.