WASHINGTON, May 8, 2026 — The Commodity Futures Trading Commission on Friday proposed amendments to its swap clearing requirements that would replace mandatory clearing obligations tied to legacy benchmark rates for certain Canadian dollar- and Mexican peso-denominated interest rate swaps with requirements linked to overnight, nearly risk-free rates.
According to a statement, the proposal would amend Part 50 of the CFTC’s regulations governing swaps required to be submitted for clearing to a derivatives clearing organization or exempt derivatives clearing organization.
Benchmark transition framework
The proposed amendments would remove clearing requirements for interest rate swaps referencing the Canadian Dollar Offered Rate, or CDOR, and the Interbank Equilibrium Interest Rate, known as TIIE, and replace them with requirements tied to overnight, nearly risk-free rates.
The proposal reflects the continued shift in derivatives clearing requirements from legacy interbank offered rates toward overnight, nearly risk-free rates.
Proposed amendments to clearing requirements
Under the proposal, the CFTC would amend Regulation 50.4(a) to modify the termination date range for Canadian dollar-denominated overnight index swaps referencing the Canadian Overnight Repo Rate Average, or CORRA, to seven days through 30 years.
The proposal would also add Mexican peso-denominated overnight index swaps referencing the Overnight TIIE Funding Rate to the overnight index swap clearing class, with a stated termination date range of 28 days through 21 years.
In addition, the CFTC proposed removing Canadian dollar swaps referencing CDOR from the fixed-to-floating swap clearing class and removing Mexican peso swaps referencing TIIE from the same category.
Compliance timeline and public comment period
The agency said it would also amend Regulation 50.25(b) to update compliance dates reflecting the revised set of swaps subject to mandatory clearing requirements.
The comment period will remain open for 30 days following publication of the proposal in the Federal Register.
