No CVA exemptions in US Basel III rules


US regulators have veered away from Europe – and stuck to the Basel III script – by implementing the new prudential framework with no exemptions to the credit valuation adjustment (CVA) charge for derivatives counterparty risk. The widely expected move means European banks will be able to offer lower prices than their US rivals to corporates, sovereigns and pension funds, which often trade on an uncollateralised basis and may be subject to a relatively high CVA add-on.

"There is a real risk that

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 or view our subscription options here:

You are currently unable to copy this content. Please contact 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 View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a 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