Since the financial crisis, counterparties have recognised that a better understanding of valuation adjustments (XVAs) can help them provide more competitive, timely and accurate derivatives pricing – and understand the risks when entering into a derivatives contract.
While the XVA spotlight first shone on credit valuation adjustment following the financial crisis, margin valuation adjustment (MVA) has emerged in recent years in light of the initial margin rules that continue to spread to increasingly smaller firms.
This white paper examines the state of the XVA space. It explores how market participants are grappling with the conceptual and practical challenges of MVA, which XVAs are most important now, and how cloud-based solutions could be beneficial for XVAs.
Download the Nex triOptima white paper The state of the XVA space – MVA, pre-trade challenges and more