The average daily turnover of over the counter (OTC) derivatives traded in the United Kingdom rose steadily from 2001, and peaked in 2019. The total value of derivative turnovers in 2019 amounted to a value of around **** trillion U.S. dollars. The most common interest rate instruments traded were interest rate swaps. After only amounting to a value of *** billion U.S. dollars in 2001, the total value of interest rate swaps in 2019 amounted to over *** trillion U.S. dollars.

Global interest rate (net - gross), for other interest rate swaps, total (all currencies), total (all currencies), total (all maturities), total (all counterparties), United Kingdom, All countries (total), total (all ratings), total (all sectors), total (all methods), turnover - notional amounts (daily average)

Graph and download economic data for ICE Swap Rates, 11:00 A.M. (London Time), Based on British Pound, 7 Year Tenor (ICERATES1100GBP7Y) from 2014-08-01 to 2021-12-24 about 7-year, swaps, London, United Kingdom, interest rate, interest, rate, and USA.

Graph and download economic data for ICE Swap Rates, 11:00 A.M. (London Time), Based on Euros, 5 Year Tenor (ICERATES1100EUR5Y) from 2014-08-01 to 2021-12-30 about swaps, London, Euro Area, Europe, 5-year, interest rate, interest, and rate.

View market daily updates and historical trends for UK OIS 2 Year Yield. from United Kingdom. Source: Bank of England. Track economic data with YCharts an…

Cross currency swap differs from single currency swaps in that the interest rate payments on the two legs are in different currencies. At inception of the trade, the notional principal amounts in the two currencies are usually set to be fair given the spot exchange rate. Contrary to single currency swap, there is an exchange of principals at inception and maturity, or even in each period of the swap.

Cross currency swaps are powerful instruments to transfer assets or liabilities from one currency to another. The market charges for this is a liquidity premium – the cross-currency basis spread. Thus, the market quoted cross-currency basis spreads usually relative to a liquidity benchmark.

For a cross currency trade between one currency and another currency. If there is a higher demand for the currency, the party lending the dollar will ask for a premium. This premium is referred to as the cross currency basis. In general, the cross currency basis is a measure of the dollar shortage in the market. The more negative the basis is, the more severe the shortage.

Cross currency basis is an important element of currency management. To price a cross-currency product, the cross-currency basis spread has to be taken into account by adjusting either discounting or forecasting curves. For domestic currency investor, negative basis can work in their favor when they hedge currency exposures. For foreign investors, however, the basis can increase their hedging cost.

The yield on UK 5 Year Bond Yield held steady at 4.14% on September 30, 2025. Over the past month, the yield has remained flat, and it is 0.32 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. United Kingdom 5 Year Note Yield - values, historical data, forecasts and news - updated on September of 2025.

Overnight Interbank Average Rate in the United Kingdom remained unchanged at 3.97 percent on Tuesday September 23. This dataset includes a chart with historical data for the United Kingdom Overnight Interbank Average Rate.

Sterling Overnight Index Average Rate in the United Kingdom remained unchanged at 3.97 percent on Wednesday September 24. This dataset includes a chart with historical data for the United Kingdom Sterling Overnight Index Average Rate.

Mortgage Rate in the United Kingdom decreased to 6.86 percent in August from 6.95 percent in July of 2025. This dataset provides - United Kingdom BBA Mortgage Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Graph and download economic data for ICE Swap Rates, 12:00 P.M. (London Time), Based on Euros, 9 Year Tenor (ICERATES1200EUR9Y) from 2014-08-01 to 2021-12-27 about 9-year, swaps, London, Euro Area, Europe, interest rate, interest, and rate.

View daily updates and historical trends for Sterling Overnight Index Average (SONIA). from United Kingdom. Source: Bank of England. Track economic data w…

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Foreign Exchange Market Size 2025-2029

The foreign exchange market size is valued to increase by USD 582 billion, at a CAGR of 10.6% from 2024 to 2029. Growing urbanization and digitalization will drive the foreign exchange market.

Major Market Trends & Insights

Europe dominated the market and accounted for a 47% growth during the forecast period.
By Type - Reporting dealers segment was valued at USD 278.60 billion in 2023
By Trade Finance Instruments - Currency swaps segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 118.14 billion
Market Future Opportunities: USD 582.00 billion
CAGR from 2024 to 2029 : 10.6%

Market Summary

The market, a dynamic and intricate web of financial transactions, plays a pivotal role in facilitating global trade and economic interactions. Its primary function is to enable the conversion of one currency into another, thereby mitigating the risk of currency fluctuations for businesses and investors. Key drivers of this market include growing urbanization and digitalization, which have expanded trading opportunities to a 24x7 global economy. However, the uncertainty of future exchange rates poses a significant challenge, necessitating effective risk management strategies. The market's evolution reflects the increasing interconnectedness of the global economy. Transactions occur in a decentralized, over-the-counter system, with major trading centers in London, New York, and Tokyo.
Participants include commercial banks, investment banks, hedge funds, and individual investors, all seeking to capitalize on price differences between currencies. Trends shaping the market include the increasing use of automation and artificial intelligence to analyze market data and execute trades. Regulatory changes, such as the introduction of stricter capital requirements, also impact the market's functioning. Looking ahead, the market is expected to remain a vital component of the global financial landscape, with continued growth driven by increased trade and economic interdependence. However, challenges, such as regulatory changes and geopolitical risks, will necessitate adaptability and innovation from market participants.

What will be the Size of the Foreign Exchange Market during the forecast period?

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How is the Foreign Exchange Market Segmented ?

The foreign exchange industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Reporting dealers
  Financial institutions
  Non-financial customers


Trade Finance Instruments

  Currency swaps
  Outright forward and FX swaps
  FX options


Trading Platforms

  Electronic Trading
  Over-the-Counter (OTC)
  Mobile Trading


Geography

  North America

    US
    Canada


  Europe

    Germany
    Switzerland
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The reporting dealers segment is estimated to witness significant growth during the forecast period.

The market, a dynamic and ever-evolving financial landscape, is characterized by constant activity and intricate patterns. Participants engage in various trading strategies, employing advanced tools such as stop-loss and take-profit orders on forex trading platforms. Real-time data feeds and order book dynamics facilitate trade execution speed, while market microstructure and slippage minimization techniques ensure efficient transactions. Currency correlation analysis and transaction cost analysis are integral to informed decision-making, with backtesting methodologies providing valuable insights. Currency forwards contracts, position sizing techniques, and forex derivatives pricing are essential components of risk management systems. Carry trade strategies, hedging strategies, and interest rate parity are popular tactics employed by market participants.

Algorithmic trading strategies, driven by options pricing models and trading algorithms' efficiency, significantly influence price discovery mechanisms. High-frequency trading and volatility modeling contribute to the market's liquidity risk management, while foreign exchange swaps and currency option valuation help manage risk. The market's complexities necessitate sophisticated risk management systems and intricate order routing optimization. Global payments systems facilitate the smooth transfer of funds, and liquidity risk management remains a critical concern for market participants. According to recent studies, The market is estimated to account for approximately USD6 trillion in daily trading volume, und

Snapshot img

Fixed Income Assets Management Market Size 2025-2029

The fixed income assets management market size is valued to increase USD 9.16 tr, at a CAGR of 6.3% from 2024 to 2029. Increasing investment in fixed income assets will drive the fixed income assets management market.

Major Market Trends & Insights

North America dominated the market and accounted for a 35% growth during the forecast period.
By Type - Core segment was valued at USD 13.18 tr in 2023
By End-user - Enterprises segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 55.33 tr
Market Future Opportunities: USD 9156.40 tr
CAGR : 6.3%
North America: Largest market in 2023

Market Summary

The market encompasses the management and investment in various types of debt securities, including bonds and treasuries. Core technologies and applications, such as portfolio optimization algorithms and risk management tools, play a crucial role in this market's continuous evolution. One significant trend is the increasing adoption of bond exchange-traded funds (ETFs), which accounted for over 20% of global fixed income assets under management in 2021.
However, the market faces challenges, including transaction risks and regulatory changes. For instance, the European Securities and Markets Authority's (ESMA) updated guidelines on MiFID II reporting requirements have impacted market participants. Despite these challenges, opportunities persist, including the growing demand for active management strategies and the increasing popularity of alternative investment-grade bonds.

What will be the Size of the Fixed Income Assets Management Market during the forecast period?

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How is the Fixed Income Assets Management Market Segmented and what are the key trends of market segmentation?

The fixed income assets management industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD tr' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Core
  Alternative


End-user

  Enterprises
  Individuals


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The core segment is estimated to witness significant growth during the forecast period.

Fixed Income Asset Management (FIAM) is a strategic investment approach that focuses on managing a diversified mix of US dollar-denominated fixed-income securities. This strategy encompasses various types of securities, including investment-grade bonds, commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), asset-backed securities (ABS), US government bonds, corporate debt, and other securitized assets. FIAM strategies employ rigorous research and risk management techniques to deliver consistent, solid returns, balancing both capital growth and income objectives. Portfolio managers meticulously blend securities across issuers, maturities, and jurisdictions to cater to the varying requirements of investors. Quantitative bond strategies, such as yield curve modeling and duration and convexity analysis, play a crucial role in FIAM.

These strategies help in assessing the risk-reward trade-off and optimizing the portfolio's sensitivity to interest rate changes. Interest rate swaps and other interest rate derivatives are essential tools in managing FIAM. They enable portfolio managers to hedge against interest rate risk and adjust the portfolio's duration to maintain an optimal risk profile. Performance attribution models and option-adjusted spread analysis are essential for evaluating the effectiveness of FIAM strategies. These models help in understanding the contribution of various factors to the portfolio's overall performance. Liquidity risk management is another critical aspect of FIAM. Portfolio managers employ various techniques, such as securitization and debt portfolio optimization, to manage liquidity risk and ensure that the portfolio remains accessible to investors.

Global macroeconomic factors, such as inflation, economic growth, and interest rates, significantly impact the FIAM market. Inflation-linked securities and credit default swaps are popular instruments used to hedge against inflation risk and credit risk, respectively. The FIAM market is experiencing steady growth, with an increasing number of investors recognizing the benefits of this investment strategy. According to recent studies, the market is projected to expand by approximately 12% in the coming year. Additionally, there has been a significant increase in the adoption of quantitative bond strategies, with over 40% of portfolio managers re

Snapshot img

Structured Finance Market Size 2025-2029

The structured finance market size is valued to increase by USD 1128.5 billion, at a CAGR of 11.9% from 2024 to 2029. Increasing demand for alternative investment products will drive the structured finance market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 42% growth during the forecast period.
By End-user - Large enterprises segment was valued at USD 771.40 billion in 2023
By Type - CDO segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 163.86 billion
Market Future Opportunities: USD 1128.50 billion
CAGR from 2024 to 2029 : 11.9%

Market Summary

The market is witnessing significant growth due to the increasing demand for alternative investment products. This trend is driven by investors' quest for yield and risk diversification, particularly in an era of low-interest rates. One notable development in this space is the increasing popularity of Environmental, Social, and Governance (ESG) linked structured finance products. These instruments offer investors the opportunity to align their investments with their values while also potentially achieving attractive returns. Another factor fueling market growth is the increasing complexity of structured finance products. As financial institutions seek to innovate and differentiate themselves, they are developing increasingly sophisticated structures to meet the evolving needs of their clients.
For instance, a leading global manufacturing company recently optimized its supply chain financing by implementing a structured finance solution. This enabled the company to improve its working capital position and enhance operational efficiency, resulting in a significant reduction in days sales outstanding (DSO) by 15%. Despite these opportunities, the market faces challenges, including regulatory compliance and counterparty risk. As financial regulations continue to evolve, institutions must ensure that their structured products comply with the latest rules and regulations. Additionally, managing counterparty risk remains a critical concern, particularly in the wake of the 2008 financial crisis. To mitigate these risks, institutions are increasingly leveraging technology and Data Analytics to assess and monitor counterparty risk in real-time.
In conclusion, the market is experiencing robust growth, driven by increasing demand for alternative investment products and the development of innovative structures. While challenges persist, institutions that can effectively navigate the complex regulatory landscape and manage counterparty risk will be well-positioned to capitalize on the opportunities in this dynamic market.

What will be the Size of the Structured Finance Market during the forecast period?

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How is the Structured Finance Market Segmented ?

The structured finance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Large enterprises
  SMEs


Type

  CDO
  Asset-backed securities
  Mortgage-backed securities


Product

  Loans
  Bonds
  Mortgages
  Credit card and trade receivables
  Others


Application Type

  Real Estate
  Automotive
  Consumer Credit
  Infrastructure


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By End-user Insights

The large enterprises segment is estimated to witness significant growth during the forecast period.

In the dynamic world of structured finance, major enterprises play a pivotal role, engaging in intricate financing agreements to manage their capital and mitigate risk. Structured finance transactions involve the combination of various financial instruments, including bonds, mortgages, and loans, which are then securitized and sold to investors. This process enables businesses to raise capital by transferring related risks, with large businesses often serving as the original creators of the underlying assets. The market is characterized by ongoing activities and evolving patterns. For instance, portfolio risk management strategies involve the use of credit derivatives, such as credit default swaps and interest rate swaps, for hedging purposes.

Leveraged finance and Private Equity financing employ synthetic securitization techniques, like structured notes and synthetic collateralized debt obligations, to optimize capital structures. Credit rating agencies assess credit risk, while investment grade ratings provide benchmarks for investors. Liquidity management and due diligence processes

View market daily updates and historical trends for 5-Year, 5-Year Forward Inflation Expectation Rate. from United States. Source: Federal Reserve Bank of…

Graph and download economic data for 5-Year Breakeven Inflation Rate (T5YIE) from 2003-01-02 to 2025-09-29 about spread, 5-year, interest rate, interest, inflation, rate, and USA.