The Standardised Approach to measuring counterparty credit risk (SA-CCR) was proposed in 2014 by the Basel Committee as an alternative to the Current Exposure Method (CEM) for measuring derivatives risk. While not perfect, the SA-CCR represents a substantial advance over the CEM and should be adopted in all jurisdictions. Delays have already led to unnecessarily weakened listed derivatives liquidity. This trajectory can be reversed but requires action.
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Don’t delay: it’s time to adopt SA-CCR
