thanks, Dgabriel, right on. If they are all OTC they cannot be daytraded? but I thought you could trade OTC more actively. perhaps not 30-trades a day, but it doesn't mean you cannot 'actively' trade DVs, right? also, when you say the "amount," do you mean the volume? because forex is supposed to be the biggest market at $2t a day.
too tired to do the math here but I do not think the numbers are so high in this link www.occ.treas.gov/toolkit/newsrelease.aspx?Doc=MC44FU0H.xml however ... -The 25 largest banks account for more than 99 percent of the total notional amount of derivatives._ Five commercial banks account for 96 percent of the total.- here is another link of interest ... www.occ.treas.gov/toolkit/newsrelease.aspx?Doc=2HUO7PYF.xml
Exactly and a lot of OTC derivatives are nonsense trades to get around tax or some other regulation, just convenient to call them derivatives and it makes the structuring bank look clever. I question how many credit derivatives are real in the sense that they payoff in the event of a default.
whoever here gets in panickMood and running for otm puts ... this thing has been discussed over a decade now ... so enough time for a coffee ... but then again ...