The key findings are:
- Banks are split on whether SA-CCR will benefit or hinder their derivatives business, with clearing businesses generally, but not universally, expecting benefits
- Commodities and foreign exchange (FX) face significant increases in capital requirements under SA-CCR
- Corporates, pension funds and long-only asset managers face higher costs
- Clearing is set to increase with FX and rates the major beneficiaries
- Banks, particularly those in the European Union, fear an unlevel playing field
- Some US banks may still shift to SA-CCR ahead of regulatory implementation
- Agreeing on the approach, gathering the data and developing technology have been the major hurdles for banks
- SA-CCR will increase incentives for active risk and portfolio management
The full report is available at https://www.acuiti.io/wp-content/uploads/2021/07/SA-CCR-Impact-and-Implementation.pdf