Regulatory Alerts2026-05-12 | 2026-09428Clearing 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
The Commodity Futures Trading Commission proposes to amend its interest rate swap clearing regulations to address the transition from the Canadian Dollar Offered Rate to the Canadian Overnight Repo Rate Average and from the Mexican Interbank Equilibrium Interest Rate to the Overnight TIIE Funding Rate. These amendments modify the clearing requirements for interest rate swaps denominated in Canadian dollars and Mexican pesos to reflect the shift from interbank offered rates to alternative reference rates. The proposal aims to ensure that cleared derivatives accurately account for these benchmark changes while maintaining consistency with global regulatory efforts to replace unreliable reference rates.
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