Comment Deadline Set for CFTC Proposal on LIBOR-related Clearing

Comments are due by June 30, 2022 for a CFTC proposal to amend the clearing requirement to remove LIBOR and other interbank offered rates and include risk-free rates such as SOFR. The proposal was published in the Federal Register.

As previously covered, the proposal would amend CFTC Rule 50.4(a) ("Classes of swaps required to be cleared") to:

• remove the clearing requirement for non-USD LIBOR (fixed-floating, basis and FRA) and EUR Euro Overnight Index Average (fixed-floating OIS) swaps 30 days after publication of the final rule in the Federal Register;

• require clearing for OIS swaps referencing the Secured Overnight Financing Rate, the Euro Short-Term Rate, the Swiss Average Rate Overnight, the Tokyo Overnight Average, the Singapore Overnight Rate Average and the Sterling Overnight Index Average 30 days after publication of the final rule in the Federal Register; and

• remove the clearing requirement for USD LIBOR (fixed-floating, basis and FRA) and SGD SOR-VWAP (fixed-floating) swaps beginning on July 1, 2023.