European dealers wrestle with corporate CVA changes

Banks say prices already diverging; CDS market could be impacted

Euro money and flag

Three years after refusing to apply the Basel Committee on Banking Supervision's counterparty credit risk capital charge to trades with corporates, the European Union is aiming to get back in line with its international counterparts.

However the path to removing the regulatory credit valuation adjustment (CVA) exemption is not smooth. It may come in sooner via an add-on capital charge, or later when legislation is drawn up to implement the new prudential market risk rules – or not at all, if

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here