The Current State of XVA Usage in Latin America

XVAs are increasingly becoming more engrained in derivatives practices across the globe. While the U.S. and Europe are quite advanced in terms of the implementation of XVA practices, leveraging the full range of adjustments and managing positions from centralized XVA desks, Latin America, is a prime example of a region that is diverse and dynamic in terms of its XVA implementation and usage, and also growing rapidly.

In this whitepaper, Augusto Carvalho, Numerix’s Regional Director of Presales, who spends a lot of time in Latin America educating banks and other institutions about XVA solutions, provides his observations on XVA practices in the region.

Readers will gain insight into:

• The growth of derivatives trading within the region
• The main drivers of XVA activity in Latin America
• The pace of XVA adoption within certain countries
• The level of XVA sophistication by country
• The obstacles to XVA adoption

Mr. Carvalho also points out that the more Latin American institutions start viewing XVAs from an ROI perspective, the more they will want to adopt them.