Credit derivatives markets saw the first ever decline in the volume of outstanding contracts over the first half of the year as the industry pursued aggressively its efforts to tidy up the sector and cut risks.

The notional outstanding volume of credit derivatives was $54,600bn at the end of June, down 12 per cent from the $62,300bn at the end of 2007, according to the latest data from International Swaps and Derivatives Association, the global industry body.