Federal Register #2026-18212

CFTC Rule Change: Interest Rate Swap Clearing for CAD CORRA and MXN FTIIE Benchmarks

This opportunity relates to regulatory changes by the Commodity Futures Trading Commission (CFTC) affecting interest rate swap clearing requirements: - Government Buyer: - Commodity Futures Trading Commission (CFTC) - OEMs and Vendors Mentioned: - Refinitiv Benchmark Services (UK) Limited (RBSL) - Banco de Mexico - CME Group - LCH - Asigna - Products/Services Requested: - No physical products or services are being procured; the rule mandates clearing of specific interest rate swaps - Interest Rate Swap - Fixed-to-Floating Swap Class - Swaps denominated in Canadian Dollar (CAD) referencing CAD CORRA - Termination date range: 7 days to 30 years - Interest Rate Swap - Overnight Index Swap Class - Swaps denominated in Mexican Peso (MXN) referencing MXN TIIE ONOIS Compound - Termination date range: 28 days to 21 years - Unique or Notable Requirements: - Transition from CAD CDOR and MXN TIIE benchmarks to CAD CORRA and MXN FTIIE - Clearinghouses (CME, LCH, Asigna) must clear swaps referencing new benchmarks - Rule aims to reduce systemic risk and align with international standards - No procurement of goods or services; this is a regulatory action impacting derivatives clearing organizations and market participants

Description

The Commodity Futures Trading Commission (CFTC) is issuing a final rule amending its interest rate swap clearing requirement regulations under the Commodity Exchange Act. The amendments 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 TIIE Funding Rate (F-TIIE). These changes reflect a global effort to move away from IBORs to nearly risk-free reference rates (RFRs). The rule revises the set of interest rate swaps required to be submitted for clearing to registered or exempt derivatives clearing organizations.

View original listing