On 31 March 2014 the Basel Committee published a final standard on the treatment of derivatives-related transactions in its Adequacy Framework. The standardised approach for measuring counterparty credit risk exposures improves on existing non-modelled methodologies for assessing the counterparty credit risk associated with derivatives transactions. The standardised approach therefore replaces both the current exposure methods and the standardised methods in the Basel framework. It also simplifies the framework by narrowing the range of methodologies available to banks to measure their counter party credit risk exposures. The Committee's aim was to develop a risk sensitive methodology that appropriately differentiates between margined and unmargined trades and provides a more meaningful recognition of netting benefits than either of the existing non-modelled approaches.