Among the 14 steps urged upon Credit Suisse by the law firm that investigated its Archegos loss is one the bank has so far not acted upon or endorsed – a bigger role for the bank’s derivatives valuation adjustment (XVA) desk.

Out of this simple, narrow suggestion – that the XVA desk would have helped Credit Suisse avoid or limit its $5.5 billion loss – come some complex, broader questions about the role of XVA desks today, and how that role might change. At other banks, many traders and quants