Clearing Requirement Determination Under Section 2(h) of the Commodity Exchange Act for Interest Rate Swaps To Account for CAD and MXN Interest Rate Benchmark Transitions
- Published
- Sep 8, 2026
- Effective
- Oct 8, 2026
- Citation
- 91 FR 57063
Final rule.
Summary
The Commodity Futures Trading Commission (CFTC) has updated its rules on which interest‑rate swaps must be cleared through a derivatives clearing organization. The change reflects the planned shift away from two legacy benchmark rates – the Canadian Dollar Offered Rate (CDOR) and Mexico’s TIIE – to newer, risk‑free overnight rates, the Canadian Overnight Repo Rate Average (CORRA) and the TIIE Funding Rate (F‑TIIE). By aligning the clearing requirement with these new reference rates, the CFTC aims to keep the U.S. derivatives market safe and transparent as the global financial system moves off older interbank offered rates that are no longer reliable. The rule applies to anyone who trades or clears interest‑rate swaps denominated in Canadian dollars or Mexican pesos, including banks, broker‑dealers, hedge funds and corporate users of swaps. Under the amendment, swaps that reference CORRA or F‑TIIE must be submitted for clearing to a registered or exempt clearing organization, just as swaps that previously referenced CDOR or TIIE were required to be cleared. The final rule was published in the Federal Register on September 8, 2026 (91 FR 57063) and becomes effective on October 8, 2026. The comment period that preceded the final rule has closed, and the CFTC will now enforce the revised clearing obligations. Market participants should review their swap contracts, transition any outstanding CDOR‑ or TIIE‑linked swaps to the new benchmarks, and ensure they are cleared through an eligible clearing organization by the effective date.
AI-generated summary — verify against the Federal Register text.
Official abstract
The Commodity Futures Trading Commission (Commission or CFTC) is amending its interest rate swap clearing requirement regulations under applicable provisions of the Commodity Exchange Act (CEA) to address the transition from the Canadian Dollar Offered Rate (CDOR) to the Canadian Overnight Repo Rate Average (CORRA), and the transition from the Mexican Interbank Equilibrium Interest Rate (la Tasa de Inter[eacute]s Interbancaria de Equilibrio, or TIIE by its Spanish acronym) to the TIIE Funding Rate (TIIE de Fondeo or F-TIIE), as benchmark reference rates for interest rate swaps denominated, respectively, in Canadian dollars (CAD) and Mexican pesos (MXN). These transitions are part of an ongoing global effort by market participants, benchmark administrators, regulators, and others to shift away from reliance on certain interbank offered rates (IBORs) that have become unavailable as benchmark reference rates and adopt alternative reference rates, which are predominantly overnight, nearly risk-free reference rates (RFRs). These amendments revise the set of interest rate swaps that are required to be submitted for clearing, pursuant to the CEA and the Commission's regulations, to a derivatives clearing organization (DCO) that is registered under the CEA (registered DCO) or a DCO that has been exempted from such registration (exempt DCO). The amendments modify the Commission's interest rate swap clearing requirement to reflect the market transitions from swaps referencing CAD CDOR and MXN TIIE to swaps referencing, respectively, CAD CORRA and MXN F-TIIE.
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