The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (together, the Agencies) are requesting public comment on a proposal that would implement a new approach for calculating the exposure amount for derivative contracts under the Agencies’ regulatory capital rules. The proposed approach, the standardized approach for counterparty credit risk (SA-CCR), would replace the Current Exposure Method (CEM) in the capital rules’ advanced approaches for calculating risk-weighted assets. The proposal also would require advanced approaches banking organizations to determine the exposure amount for derivative contracts using SA-CCR for purposes of calculating its standardized total risk-weighted assets. The proposal would allow non-advanced approaches banking organizations to use either CEM or SA-CCR to determine the exposure amount for derivative contracts.