On October 13, 2023, ISDA and the Association for Financial Markets in Europe (AFME) submitted a joint letter responding to the European Banking Authority (EBA) on its report on the standardized approach for counterparty credit risk (SA-CCR).
The letter states the associations’ concerns about the significant impact on capital requirements from the current SA-CCR calibration and provides feedback on some of the points raised by the EBA in its report on May 30, 2023. In particular, the letter identifies the impact of a reduced alpha factor for the output floor calculation and how the assessment conducted by the EBA unduly impacts banks that have permission to use the internal model method. Due to the issues in the methodology chosen by the EBA, the letter expresses concerns about the conclusions of the report and urges policymakers to reconsider the SA-CCR calibration.
Documents (1) for Letter to the EBA on SA-CCR
Latest
Market Transformation – IQ May 2026
On the 250th anniversary of American independence, this year’s ISDA Annual General Meeting (AGM) was held in Boston, a city that played a prominent role in the American Revolution. In his opening remarks, ISDA chief executive Scott O’Malia drew a...
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.
Letter to EC and ESMA on Derivatives Framework
On March 27, ISDA sent a letter to the European Commission (EC) and the European Securities and Markets Authority (ESMA) to highlight several technical issues arising from the interaction between the delegated regulation (EU) 2025/1003 on identifying reference data to...
Response on Proposed Changes to Transaction Rules
On May 22, ISDA and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association submitted a joint response to the Australian Securities and Investments Commission's (ASIC) consultation on proposed changes to the ASIC Derivative Transaction Rules (Reporting)...