Deadline Set For CFTC Comment Request On IBOR-Related Swap Clearing Requirement

The CFTC published in the Federal Register a request for information and comment on potential modifications to CFTC Rule 50.4 ("Classes of Swaps Required to Be Cleared") to address benchmark reform. Comments are due by January 24, 2022.

As previously covered, the CFTC is seeking information on, among other things, the ability of derivatives clearing organizations to offer clearing services for a variety of currency and rate transactions, including certain non-U.S. currencies and USD LIBOR rates.

The CFTC is also seeking comment specifically on (i) information on alternative reference rate-referencing swaps and whether to impose a clearing mandate for such swaps, (ii) documentation requirements for new swap products, (iii) swap classifications under the swap clearing requirement and (iv) cost-benefit factors to consider.