The State of XVA Usage in Latin America – A 2022 Update

This is an update to a paper we published in August of 2020 on the state of XVA usage in Latin America, which included observations on implementation trends among different countries, types of valuation adjustments used, and the challenges and obstacles to XVA adoption in the region.

We figured it was time, nearly 20 months later, for a fresh appraisal of the state of XVA adoption and usage in Latin America and we have new developments to share. Key updates include:

• Derivatives trading activity in Latin America has risen considerably in the last few years.
• Why Brazil joined the list of top XVA implementing nations in the region.
• Which XVA is just now starting to garner some attention.
• How XVAs are driving a significant new technology trend in the region.