Analyzing the global usage of XVAs

The XVA world has a wide audience: traders and trading desks, risk managers, quants, regulators, financial engineers and software vendors/solution providers. The family of valuation adjustments also manifests globally. Not every region across the globe is the same when it comes to the primary reasons for implementing valuation adjustments, and in a few cases, a different emphasis is placed on different adjustments. However, addressing pricing risk and regulatory risk are common themes that run across every region. 

This white paper presents the most interesting survey findings. The survey aimed to understand current XVA usage and practices within a still diverse implementation global landscape of XVA. The focus was not on the technical and methodological aspects but more on the general issues typically encountered within the task of managing XVAs. The survey touches on XVA trends and challenges, utilization of the XVA function, organizational and infrastructure issues, business implications, as well as other areas of focus.