Euro Launch Hits OTC Market, Overall Volumes Dive, Says BIS
ANALYSIS
BASLE--The launch of the euro -- while causing a reduction of around 20 per cent in spot trading -- has also had a profound impact on the OTC derivatives markets.
According to a Bank for International Settlements report, there has been a steep reduction in the use of OTC foreign exchange contracts in the first half of the year.
The notional amount out-standing in currency contracts fell from $18 trillion in December 1998 to $14.9 trillion in June. The gross market value of those contracts fell
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