CFTC updates interest rate swap clearing to new CORRA and F-TIIE benchmarks

The Commodity Futures Trading Commission (CFTC) has adopted a final rule amending its interest rate swap clearing requirement to reflect the market transition from the Canadian Dollar Offered Rate (CDOR) to the Canadian Overnight Repo Rate Average (CORRA) and from the Mexican TIIE to the TIIE Funding Rate (F-TIIE). The rule, published in the Federal Register of September 8, 2026 (Vol. 91, No. 172), takes effect on October 8, 2026, and amends 17 CFR Part 50 under RIN 3038-AF69 (FR Doc 2026-18212).

The amendments update the clearing requirement under Section 2(h) of the Commodity Exchange Act (CEA) by removing swaps referencing CAD CDOR and MXN TIIE, which are no longer offered for clearing, and adding requirements for the corresponding risk-free-rate (RFR) overnight index swaps (OIS). The rule follows a notice of proposed rulemaking published on May 12, 2026, and completes a multiyear global effort to shift away from interbank offered rates (IBORs).

Benchmark transitions behind the rule

CAD CDOR ceased publication on June 28, 2024, after serving since the 1980s as the primary wholesale interest rate benchmark in Canada, referenced in over $20 trillion of gross notional exposure. In Mexico, Banco de México prohibited the use of 28-day MXN TIIE as a reference rate for new contracts entered into by regulated financial entities beginning January 1, 2025, subject to a waiver allowing trading of new swaps referencing 28-day MXN TIIE until December 31, 2025.

• CME and LCH, the registered derivatives clearing organizations (DCOs), converted cleared MXN TIIE swaps into market-standard MXN F-TIIE OIS in November 2024, as did the Mexican clearinghouse Asigna.
• Neither CME, LCH, nor any other clearinghouse currently offers CAD CDOR or MXN TIIE swaps for clearing.
• CME clears MXN F-TIIE OIS with a maximum stated termination date of 31 years; LCH clears them up to 21 years.

What the final rule changes

The Commission is finalizing amendments to regulation § 50.4(a) in three ways: removing the CAD CDOR and MXN TIIE interest rate swap clearing requirements; modifying the CAD CORRA OIS requirement to include a maximum stated termination date of 30 years; and adding a clearing requirement for MXN-denominated OIS referencing MXN F-TIIE with a maximum stated termination date of 21 years. As a technical amendment, the same swaps are removed from regulation § 50.26.

The compliance date is set at 30 days after publication of the final rule, as proposed. The International Swaps and Derivatives Association (ISDA) and an individual commenter had urged a longer implementation period, arguing that firms need time to adapt systems, run trainings, and address jurisdictional requirements, but the Commission reaffirmed its 30-day timeline, noting that CME and LCH have already completed their conversion plans.

Coordination with other jurisdictions

The rule reflects coordination with international authorities, including Banco de México and the Canadian Securities Administrators (CSA), which have updated their own clearing requirements to reflect the benchmark transitions. The Commission noted that only the United States and Mexico had required MXN TIIE swaps to be cleared, and that the CSA removed CAD CDOR-referenced swaps from Canada’s clearing requirement while adding CAD CORRA OIS with maturities of 7 days to 30 years.

The Commission determined that subjecting MXN F-TIIE OIS and additional CAD CORRA OIS to required clearing is unlikely to impair CME’s or LCH’s ability to comply with DCO core principles, and that the RFR OIS swaps pose no financial or legal risks materially distinguishable from those posed by the IBOR swaps previously required to be cleared.

For all market participants clearing interest rate swaps, the rule means that CAD-denominated and MXN-denominated positions must now reference the new CORRA and F-TIIE benchmarks to remain within the mandatory clearing framework. Because the affected swaps were already being cleared voluntarily in large volumes, the Commission expects the change to have limited practical impact while ensuring that U.S. clearing requirements stay aligned with the benchmarks actually available in the market and with the rules adopted by Canada and Mexico.

Source: Federal Register, Vol. 91, No. 172, September 8, 2026, Rules and Regulations (official reference: FR Doc 2026-18212, RIN 3038-AF69, 17 CFR Part 50).