U.S. Unseats U.K. as Global Center for Rates Derivatives Trading
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New York overtook London for the first time as the largest global center for over the counter interest-rate derivatives trading, according to a report released Thursday by the Bank for International Settlements in Basel.
Forty-one percent of interest-rate derivatives were traded in the U.S. as of April, up from 23 percent three years ago. The U.K.’s share of the $2.7 trillion market shrunk to 39 percent from about half during the same period. The BIS said the geographic shift was due to increased trading of dollar-denominated swaps relative to euro-denominated instruments.