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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