The OCC, FRB, and FDIC issued a notice of proposed rulemaking to revise the calculation of derivative exposures under the regulatory capital rules from the Current Exposure Method (CEM) to the revised Standardized Approach for Counterparty Credit Risk (SA-CCR).  SA-CCR is a more risk sensitive approach than CEM, which uses notional amounts with limited recognition of netting and does not distinguish between margined versus un-margined trades and centrally cleared versus over-the-counter trades.  The agencies’ proposal generally is consistent with the SA-CCR methodology developed by the Basel Committee on Banking Supervision in 2014.