9B.1 The transitional provision in Rule 7.1(2) of Credit Valuation Adjustment Risk Part of the PRA Rulebook applies a legacy exempt ratio calculated on 1 January 2026 to reflect the proportion of CVA risk from previously exempted trades. Rule 7.3 specifies that firms should recalculate the legacy exempt ratio at any point when there is a material change in quantum or risk of the firm’s transactions with counterparties that were exempted prior to 1 January 2026. The PRA expects that a recalculation would be necessary as a minimum in situations where a firm materially changes its counterparty trading profile or business model.