Derivatives users are divided on whether, and how, to include pre-cessation triggers in fallbacks for legacy Libor swaps, raising the prospect of a bifurcated transition to alternative reference rates for cleared and non-cleared products.

On August 9, the International Swaps and Derivatives Association released the preliminary results of its consultation on adding a fallback trigger that would be activated if regulators determine that Libor is no longer a representative benchmark. As it stands