On 27 November 2024, the Basel Committee on Banking Supervision (Basel Committee) issued a consultation on a technical amendment to rules in the Basel Framework that relate to the hedging of counterparty credit risk exposures.

The Basel Committee periodically publishes proposals for technical amendments with the aim of helping to promote consistent interpretation of the Basel Framework. The technical amendment being consulted on relates to the circumstance where a bank has a derivative exposure and uses a guarantee or credit default swap to hedge the counterparty credit risk arising from the derivative counterparty.

The deadline for comments on the proposed technical amendment is 31 January 2025.