The International Swaps and Derivatives Association has urged US financial regulators to correct what it describes as a serious calibration error in the standardised approach for counterparty credit risk (SA-CCR), warning the current framework threatens liquidity in the US Treasury market.

Scott O’Malia, ISDA’s chief executive, argued on July 7 2026 that the Basel III endgame framework contains flaws that could undermine risk management and market efficiency for US Treasuries.

The trade body said regulators still have an opportunity to implement a more appropriate SA-CCR methodology that would support the resilience of the Treasury market. SA-CCR is a key component of the Basel III endgame framework, which sets capital requirements for banks’ derivatives exposures.

The intervention comes as debate continues over the final implementation of Basel III rules in the United States, with the banking industry pressing for modifications to proposed capital requirements.