The Standalone CVA (SCVA) is the primary building block of the Basic Approach (BA-CVA) framework as defined under PRA PS9/24. It represents the specific regulatory capital charge for a single counterparty c, calculated by aggregating the risk profiles of all underlying netting sets.

The landscape of UK financial regulation is approaching a significant turning point. Starting in January 2026, the PRA is fundamentally resetting how institutions calculate the risk of counterparty credit spread volatility. This shift marks the transition from internal modeling flexibility to a prescriptive, formulaic regime—the Basic Approach for CVA. This article maps out that transition, guiding firms through the new "Credit Valuation Adjustment Risk Part" of the Rulebook

Final step is to aggregate Net Exposure, Security Addon and FX Addon to arrive at EAD.