BIS Quarterly Review | 08 December 2025
by Patrick McGuire, Andreas Schrimpf and Goetz von Peter
Key takeaways
- Hedging activity took centre stage amid policy uncertainty in April 2025 that unsettled financial markets and precipitated a surge in FX trading as investors adjusted their hedging and portfolio strategies.
- Trading of interest rate derivatives on exchanges grew, fuelled by greater volatility in the interest rate environment and the cash-futures basis trade.
- Despite the market strains of April 2025, the overall market structure demonstrated resilience, supported by dealers’ enhanced use of internal capital markets and internal matching of customer flows.
Link: