Regulatory Alerts2022-08-24 | 2022-17736Clearing Requirement Determination Under Section 2(h) of the Commodity Exchange Act for Interest Rate Swaps to Account for the Transition From LIBOR and Other IBORs to Alternative Reference Rates
The Commodity Futures Trading Commission amends its interest rate swap clearing regulations to accommodate the global transition from discontinued interbank offered rates like LIBOR to alternative overnight reference rates. The rule updates clearing mandates for registered and exempt derivatives clearing organizations by removing requirements for swaps referencing phased-out benchmarks and adding mandates for newly established reference rates across multiple currencies. It establishes phased implementation schedules, eliminates obsolete regulatory provisions, and ensures continued systemic risk mitigation as market participants shift to the new benchmark framework.
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