Federal Register #CFTC-2026-0958

CFTC Proposed Rule: Clearing Requirement Update for CAD and MXN Interest Rate Swaps

The Commodity Futures Trading Commission (CFTC) is proposing regulatory amendments to update interest rate swap clearing requirements in response to international benchmark transitions. - Government Buyer: - Commodity Futures Trading Commission (CFTC) - OEMs and Vendors: - CME Group (Chicago Mercantile Exchange) - LCH (London Clearing House) - Products/Services Requested: - CAD CORRA Overnight Index Swaps (OIS) - Part number: CAD CORRA - Denominated in Canadian dollars, referencing the Canadian Overnight Repo Rate Average, with termination dates from 7 days to 30 years - MXN FTIIE Overnight Index Swaps (OIS) - Part number: MXN FTIIE - Denominated in Mexican pesos, referencing the Overnight TIIE Funding Rate, with termination dates from 28 days to 21 years - Unique or Notable Requirements: - The proposal removes clearing requirements for swaps referencing the outgoing CAD CDOR and MXN TIIE benchmarks - Adds clearing requirements for swaps referencing the new risk-free rates (CAD CORRA and MXN FTIIE) - Aims to align with global regulatory standards and maintain systemic risk mitigation - No specific purchase quantities or part numbers for physical goods; this is a regulatory change affecting derivatives clearing organizations - Primary registered derivatives clearing organizations (DCOs) affected: CME and LCH - No direct procurement of products or services; the notice is regulatory in nature - Key locations include CFTC headquarters in Washington, DC

Description

The Commodity Futures Trading Commission (CFTC) proposes to amend its regulations regarding interest rate swap clearing requirements to address the transition from the Canadian Dollar Offered Rate (CDOR) to the Canadian Overnight Repo Rate Average (CORRA), and from the Mexican Interbank Equilibrium Interest Rate (TIIE) to the Overnight TIIE Funding Rate (F-TIIE). This proposal is part of a global effort to shift away from IBORs to nearly risk-free reference rates (RFRs). The amendments will revise the set of interest rate swaps required to be submitted for clearing to a registered or exempt derivatives clearing organization (DCO), reflecting these benchmark transitions. The comment period for this proposed rulemaking opens on May 12, 2026, and closes on June 12, 2026.

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