Investors and companies use the popular financial product to bet or hedge against unexpected moves in interest rates by central banks.
The euro-denominated slice of this market has suffered amid ultra low interest rates. While the UK isn't in the Eurozone, a significant chunk of single currency interest rate derivative contracts are traded and booked in the City.
And now a survey by the Bank for International Settlements (BIS) — known as the bank for central banks — shows expectations that the European Central Bank will keep interest rates lower for longer are taking their toll.
The BIS said that the UK accounted for 39 per cent of the global interest-rate derivatives market this year, down from 49.9 per cent in 2013.
However, London's loss is New York's gain. The US's share swelled to 41 per cent from 23.2 per cent during this period.