LCH.Clearnet Group, the UK and French clearing house, is facing a revolt by its London members who are calling for the resignation of chief executive David Hardy over plans to overhaul its default payments policy.

The group's members, which comprise the world's biggest banks, have mounted fierce opposition to LCH.Clearnet Ltd, the London clearing arm, and are understood to have hired Linklaters, the UK law firm, to deal with their objections. The revolt by members is important because it threatens to interrupt the smooth running of an essential part of trading in financial markets.