NDFs Cross 50% of US FX Derivatives Notional, ISDA Data Shows

US FX derivatives traded notional reached $19.4 trillion in the second quarter of 2026, up 27.1% from $15.3 trillion in the first quarter of 2024, with non-deliverable forwards accounting for more than half of that figure for the first time. The numbers come from the US FX Derivatives Review, a new dataset that ISDA has added to its SwapsInfo platform, extending coverage beyond interest rate and credit derivatives into a third over-the-counter asset class.

The expansion matters for desks that benchmark trading activity. SwapsInfo, ISDA's public repository of OTC derivatives transaction data, now gives buy-side and sell-side participants a standardized view of US FX volumes alongside rates and credit.

What does the data show?

Non-deliverable forwards drove the growth. NDF notional rose 37.1% to $10.2 trillion over the review period, lifting their share of total FX derivatives notional to 52.7% from 48.9%. A non-deliverable forward (a cash-settled forward contract used where the underlying currency faces delivery restrictions) now represents the majority of US FX derivatives activity by notional.

The aggregate figures break down as follows:

• Total traded notional: $19.4 trillion in Q2 2026, up 27.1% from $15.3 trillion in Q1 2024
• NDF notional: $10.2 trillion, up 37.1% over the period
• NDF share of FX derivatives notional: 52.7%, from 48.9%

The review covers Q1 2024 through Q2 2026 and also breaks out product mix, trade size, currency pairs and execution venue. That granularity allows execution desks to compare their own routing and venue usage against the market aggregate rather than against vendor assertions.

Why does the SwapsInfo expansion matter?

The platform's move into FX closes a measurement gap. Until now, SwOpsInfo users tracking OTC activity through ISDA had visibility into interest rate and credit derivatives only. FX, the third major OTC asset class, now sits under the same public reporting framework, which gives compliance and market-structure teams a consistent baseline for volume analysis across asset classes.

For execution workflow, the venue breakdown is the operative field. Where NDF volume concentrates — and whether that concentration shifts over the eight reported quarters — will inform venue selection and transaction-cost analysis for a product whose settlement mechanics differ from deliverable forwards.

What is measured, and what is asserted?

The figures are measured transaction data, reported by ISDA from the SwapsInfo dataset. The attribution of growth to NDFs is supported by the component numbers: NDF notional grew faster (37.1%) than the aggregate (27.1%), and its share rose by 3.8 percentage points. No projection or forecast appears in the review.

The data runs only through Q2 2026. Desks should treat the trend as established over eight quarters, not as a structural verdict on the deliverable-forward market, whose absolute volumes the review does not separately quantify in the published summary.

ISDA states that the platform extension brings FX "to a third over-the-counter derivatives asset class" on SwapsInfo. The full report, available as a PDF from ISDA, contains the product, trade-size, currency-pair and venue detail.

Subsequent quarterly updates will show whether the NDF share holds above 50% or reverts, and desks tracking venue mix will find the execution-venue tables the section to watch.