- the price level,
- the volatility of the underlying financial reference index,
- the duration and liquidity of contracts, and
- the creditworthiness of counter-parties.
Foreign exchange derivatives markets are highly diversified for both forwards and swaps as well as options.
Let's go back to my initial question: Is the market getting safer? Looking at the above statistics, the notable recent decline of the gross market value since the end of 2011 strikes me most. The weapons of mass destruction seem to become less dangerous...
BIS Statistical Release – OTC Derivatives Statistics at end-June 2013 – November 7, 2013