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
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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