Foreword : OTC Foreign Exchange and Interest Rate Derivatives Markets Through the Prism of the Triennial Survey

Five articles in this special edition of the BIS Quarterly Review provide new insights about foreign exchange (FX) and over-the-counter derivatives markets by drawing on the data compiled in the 2022 BIS Triennial Central Bank Survey. In the FX space, an accelerating shift towards less "visible" trading venues and bilateral trading may reduce the information content of prices and the network benefits of integrated markets. Trading of emerging market economy currencies has become more internationalised, increasingly resembling that of advanced economy currencies. At the same time, the incidence of settlement risk has remained obstinately high, and FX swap positions point to a growing volume of "missing" US dollar debt. In interest rate derivatives markets, the reform of benchmark interest rates has altered the risk landscape, giving rise to new types of derivatives as well as new challenges for risk management