The Commodity Futures Trading Commission has expanded the list of swaps subject to the clearing requirement in CFTC Regulation 50.4 to include additional classes of interest rate swaps. Specifically, the expanded list of interest rate swaps includes the following:

  • fixed-to-floating interest rate swaps denominated in Australian dollar, Canadian dollar, Hong Kong dollar, Mexican peso, Norwegian krone, Polish zloty, Singapore dollar, Swedish krona and Swiss franc;
  • basis swaps denominated in Australian dollar;
  • forward rate agreements denominated in Norwegian krone, Polish zloty and Swedish krona;
  • overnight index swaps denominated in Australian dollar and Canadian dollar; and
  • overnight index swaps denominated in US dollar, euro and British sterling with termination dates up to three years.

In the adopting release, the CFTC set forth a compliance schedule for each class of interest rate swap ranging from 60 days to two years after publication in the Federal Register. In contrast with previous mandatory clearing determinations, there is no compliance date phase-in by type of market participant.

The CFTC’s adopting release is available here.