On January 31, ISDA and the Institute of International Finance (IIF) submitted a joint response to the Basel Committee on Banking Supervision’s proposed technical amendment on counterparty credit risk (CCR) hedging exposures. The associations believe the proposed changes to the treatment of CCR hedges are unnecessary, as the current substitution method is already very conservative and the new calculation would be complex and burdensome. The associations also believe the calibration of the potential future exposure (PFE) multiplier in the standardized approach to counterparty credit risk (SA-CCR) is too conservative and should be recalibrated before imposing changes in the technical amendment. In addition, the proposed alignment between collateral and credit derivatives fails to establish consistent treatment. The associations are concerned that the technical amendment may discourage the use of credit risk mitigation instruments, which are crucial for managing counterparty credit risk exposures.
Documents (1) for ISDA and IIF Response on Counterparty Credit Risk Hedging
Latest
ISDA In Review – August 2025
A compendium of links to new documents, research papers, press releases and comment letters published by ISDA in August 2025.
Episode 51: Trading Places
Markets have been volatile so far this year, but what has this meant for market liquidity? The Swap talks to Chris Edmonds from Intercontinental Exchange on trading activity and the market, economic and geopolitical outlook. Please view this page via...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.