The Commodity Futures Trading Commission issued a final rule on September 2, 2026, modifying clearing requirements for Canadian dollar- and Mexican peso-denominated interest rate swaps. The regulatory update shifts clearing mandates away from legacy benchmark rates toward overnight, risk-free rate alternatives, marking a significant evolution in derivatives market infrastructure across North America.
- CAD OIS Maturity Range: 7 days to 30 years (referencing Canadian Overnight Repo Rate Average)
- MXN OIS Maturity Range: 28 days to 21 years (referencing Overnight TIIE Funding Rate)
- Removed Indices: Canadian Dollar Offered Rate (CDOR) and TIIE from fixed-to-floating swap class
- Effective Date: 30 days after Federal Register publication
- Affected Regulations: CFTC Regulations 50.4 and 50.26
The final rule modifies which interest rate swaps must be submitted to derivatives clearing organizations or exempt DCOs under the CFTC’s regulatory framework. The amendments eliminate prior requirements to clear swaps referencing the Canadian Dollar Offered Rate and the Interbank Equilibrium Interest Rate, commonly known as TIIE, replacing them with broader mandates covering all overnight index swaps in these currencies.
The regulatory changes reflect broader global transitions away from legacy interbank offered rates toward more robust overnight benchmarks. For Canadian dollar swaps, the rule expands the overnight index swap class to encompass maturities from seven days to 30 years using the Canadian Overnight Repo Rate Average. Similarly, Mexican peso swaps now require clearing across a 28-day to 21-year maturity spectrum referencing the Overnight TIIE Funding Rate. In contrast, legacy TIIE and CDOR-based fixed-to-floating swaps exit the mandatory clearing framework.
Market participants will have 30 days from the rule’s Federal Register publication to adjust their compliance procedures. The CFTC simultaneously amended associated compliance dates and updated Regulations 50.4 and 50.26 to reflect the new clearing universe and operational requirements for market participants.
