Everyone seems to agree that clearing houses have become too big to fail, but what needs to be done in case of default? In an interview with Financial News, Kay Swinburne, a prominent member of the European Parliament, sets out the case for new global rules to end the “cross-jurisdictional infighting”.

In an impassioned speech to a World Federation of Exchanges conference last week, Swinburne, a member of the the influential Committee on Economic and Monetary Affairs, warned of "financial Armageddon" unless the trading community could set global standards for central counterparty clearing houses.