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
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.
A Positive Step to Improve the FRTB in the EU
As the Basel III capital reforms are finalized for implementation in key jurisdictions, ISDA is maintaining a laser focus on making sure the rules are robust and risk-appropriate. Simply put, if capital requirements are set disproportionately high, this will have...
Trading Book Capital: Scott O'Malia Remarks
Trading Book Capital: Policy Challenges for the EU 2024-2029 Mandate March 25, 2025 Welcoming Remarks Scott O’Malia ISDA Chief Executive Officer Good morning and welcome to ISDA’s trading book capital event. It’s great to be here in Brussels and...
Setting Out the Value Proposition of Derivatives
History enthusiasts may have heard of the Code of Hammurabi, an early legal text from ancient Mesopotamia, carved into a stone slab about 3,700 years ago. The code covers everything from property rights to divorce, but it also recognizes the...