EU banks rue SA-CCR mismatch with US

European clearers are stuck with CEM until 2021, but some US banks are reluctant to switch early

eu-us-jigsaw

As large US banks ponder whether or not to switch to the new standardised approach to counterparty credit risk (SA-CCR) this year, some European lenders are bemoaning being stuck with a June 2021 implementation date.

US prudential regulators have said banks can ditch the less risk sensitive current exposure method (CEM) and start using SA-CCR as early as April this year, with a mandatory compliance deadline of January 1, 2022.

Crucially, the final rule also incorporates SA-CCR into the cleared

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