Agencies Extend Comment Period on Proposed Standardized Approach for Calculating the Exposure Amount of Derivative Contracts — 2019-02-15

WASHINGTON—Three federal banking agencies on Friday extended until March 18, 2019, the comment period for a proposed rule to update their standards for how firms measure counterparty credit risk posed by derivative contracts. The proposal, jointly issued by the Federal Reserve Board, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, would provide the "standardized approach for measuring counterparty credit risk," also known as "SA- CCR" as an alternative approach to the agencies' current exposure methodology, or CEM, for calculating derivative exposure under the agencies' regulatory capital rules. With the extension, the agencies will have provided interested parties with approximately four and a half months from the date the proposal was publicly released to review the proposal.