OTC derivative transactions edge up in 2023

Transactions of over-the-counter (OTC) derivatives grew slightly from a year earlier in 2023, helped by a sharp increase in currency forwards, data showed Friday. The combined turnover of OTC derivatives, including stock options and interest rate swaps, came to 24,704 trillion won (US$17.38 trillion) last year, up 155 trillion won, or 0.6 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 8.8 percent on-year to 17,144 trillion won as demand for hedging foreign exchange volatility increased due to the strong U.S. dollar, according to the financial regulator. Transactions of currency swaps slipped 1.6 percent on-year to 1,197 trillion won in 2023, while those of interest rate swaps dipped 17.6 percent to 5,874 trillion won. As of end-2023, the value of outstanding OCT der ivatives stood at 13,291 trillion won, up 1,080 trillion won, or 8.8 percent, from a year earlier. Source: Yonhap News Agency