9A.1 The transitional provisions in Rule 7.1 of the Credit Valuation Adjustment Risk Part of the PRA Rulebook do not apply to new trades entered into on or after 1 January 2026. The PRA expects firms to consider whether amendments made to trades in scope of the transitional provisions during the transition period are such that the trade should be classified as a new trade.

9.A2 The PRA expects the following cases could prima facie indicate a trade should be considered a new trade, and thus subject to CVA risk capital requirements:

a) If the amendments involve materially changing the notional amounts or the maturity;

b) If the amendments involve novation of trades to a third-party;

c) If trades or amendments are the output of compressions cycles or other trade aggregation / consolidation processes which take as inputs one or more trades with the counterparties listed in Rule 7.1(1) (a) – (c) of the Credit Valuation Adjustment Risk Part of the PRA Rulebook entered into on or after 1 January 2026; and

d) If the amendments materially affect the economics or CVA risk of the trade that would otherwise undermine the intent of the transitional to apply only to previously exempt trades.