Credit derivative volumes rise 32 pct to $45.5 trln

NEW YORK, Sept 26 (Reuters) - Global volumes in credit derivatives grew 32 percent in the first half of 2007, and are up 75 percent on the year, the International Swaps and Derivatives Association said on Wednesday.

Credit derivatives volumes surged to $45.46 trillion, from $34.42 trillion at the end of 2006, ISDA said. Interest rate derivatives also grew 21 percent in the same period to $347.09 trillion, from $285.73 trillion, with volumes increasing 38 percent on the year.

"We expect this strong volume to continue over the 2007 second half, as privately negotiated derivatives have provided liquidity and functioned efficiently through the recent market volatility," Robert Pickel, chief executive officer of ISDA, said in a release.

Over-the-counter derivatives are privately negotiated contracts and are not traded on exchanges.

Volumes in equity derivatives also grew 39 percent in the first half of the year, and are up 57 percent over the past year, to $10.01 trillion, ISDA said. Volumes in the securities were $7.18 trillion at year end.