Pressure grows for US to copy EU’s CVA exemption


Corporate hedgers are pressing US regulators to exempt their trades from Basel III's credit valuation adjustment (CVA) charge – as European policy-makers have done – so US companies and banks are not put at a competitive disadvantage to their transatlantic peers. Dealers estimate the CVA charge would result in as much as a fourfold increase in capital requirements for uncollateralised trades.

"European policy-makers seem to be enacting capital charges on derivatives positions that are significan

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