Cleared derivatives market experiencing unprecedented levels of volume in trading as market participants struggle to manage the impact of Covid-19

The rapid spread of coronavirus disease 2019 (Covid-19) has resulted in unprecedented volumes of trading in the derivatives markets as the real economy turns to those markets to hedge its risk. Cleared derivatives markets are currently experiencing considerable turbulence as a result of this demand and activity.

This note provides some information on the current situation in the cleared derivatives market and highlights some of the key issues market participants should consider.