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CFTC Clearing to embrace (nearly) everyone else

The CFTC yesterday proposed a large expansion to the classes covered by its clearing determination Regulation 50.4(a). The proposal’s intention is to make the CFTC clearing obligation consistent with a wide range of international jurisdictions. To this end, it adds the currencies of Australia, Canada, Hong Kong, Mexico, Norway, Poland, Singapore, Sweden and Switzerland to its IRS clearing mandate, with a smaller selection for other asset classes. The Regulation currently applies to the USD, EUR, GBP and JPY. The proposal will be open for public comment for the usual 30 days after publication in the Federal Register. The below table illustrates the proposed additions to the mandate:

Class Currency Floating Rate Index Stated Termination Date Range
Fixed-to Float IRS AUD BBSW 28 days to 30 years
CAD CDOR 28 days to 30 years
HKD HIBOR 28 days to 10 years
MXN TIIE 28 days to 21 years
NOK NIBOR 28 days to 10 years
PLN WIBOR 28 days to 10 years
SGD SOR-VWAP 28 days to 10 years
SEK STIBOR 28 days to 15 years
CHF LIBOR 28 days to 30 years
Basis Swap AUD BBSW 28 days to 30 years
FRA AUD BBSW 3 days to 3 years
PLN WIBOR 3 days to 2 years
NOK NIBOR 3 days to 2 years
SEK STIBOR 3 days to 3 years
OIS AUD AONIA-OIS 7 days to 2 years
CAD CORRA-AIS 7 days to 2 years

 

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