These FAQs address the Regulatory Technical Standards (RTS) published in the EU Official Journal in May 2018, which set out the procedures for excluding third-country non-financial counterparties (NFCs) from the Credit Value Adjustment (CVA) capital risk charge under the Capital Requirements Regulation (CRR).
We have divided the FAQs into three sections related to the scope of the RTS, the requirements applicable under the RTS and the potential effects resulting from the current review of the European Market Infrastructure Regulation (EMIR Refit) and Brexit.
The responses to these FAQs involve an assessment of the existing requirements and their implications for firms; but do not constitute exhaustive nor definitive answers.
Disclaimer: This page does not contain legal advice and merely is intended as an information resource to assist market participants in planning and assessing for the identification of non-EU NFCs for the purpose of CVA requirements under CRR. For a legal interpretation of the rules, market participants should take independent counsel advice on the points addressed in these FAQs.
Documents (1) for ISDA FAQs on the Procedures for Excluding Non-EU Non-financial Counterparties Under the Capital Requirements Regulation
Latest
ISDA Response to EC on Environmental Legislation
On September 10, ISDA, the Association for Financial Markets in Europe (AFME) and the European Fund and Asset Management Association (EFAMA) submitted a joint response to the European Commission’s (EC) call for evidence on reducing the administrative burden in environmental...
Credit Derivatives Trading Activity Q2 2025
This report analyzes credit derivatives trading activity reported in Europe. The analysis shows European credit derivatives transactions based on the location of reporting venues (EU versus UK) and product type. The report also compares European-reported credit derivatives trading activity to...
ISDA Trading and Treasury Forum: CEO Remarks
ISDA Derivatives Trading and Treasury Forum London, September 16, 2025 Opening Remarks Scott O’Malia ISDA Chief Executive Officer Good morning, and welcome to the ISDA Derivatives Trading and Treasury Forum. Thank you to CME Group for partnering with us...
Recognition of Cross-product Netting is Critical
US regulators are in the process of making important changes to the regulatory capital framework by proposing modifications to the enhanced supplementary leverage ratio, which should help stop it from acting as a non-risk-sensitive constraint on bank capacity – a...