Money broker Spencer faces grilling

ICAP boss Michael Spencer faces a grilling from American lawmakers investigating claims that the British money broker is trying to 'stifle' competitors.

The Congressional Committee on Small Business is considering whether laws to protect start-up firms should be modified because of allegedly anti-competitive behaviour by ICAP in the US. It wrote to Spencer last week.

The letter, which Financial Mail has seen, orders ICAP to submit a raft of documents, including e-mail records, details of directors and minutes of meetings.

The committee, chaired by Republican Donald Manzullo, also plans to call ICAP to testify at a hearing, which could mean Spencer having to make a personal appearance.

The committee is concerned about ICAP's dispute with smaller rival Blackbird, which operates in Britain and America. ICAP bought 19% of Blackbird 18 months ago. Soon afterwards it became locked in a legal wrangle with the company, run by former JP Morgan trader Shawn Dorsch, who claims ICAP wants to shut his firm down.

The committee's letter also expresses concern about ICAP's recent court battle with another rival broker, Cantor Fitzgerald. ICAP was accused of poaching three brokers at Cantor in the aftermath of the New York terrorist attacks, in which 658 Cantor staff died.

ICAP reacted angrily to the letter. It said: 'We believe that the currently entrenched Blackbird management is attempting to misuse the office of the chairman of the Committee on Small Business and the stature of the committee simply to gain leverage in its internal corporate shareholder dispute.'

It also stressed that the judge in the Cantor case cleared ICAP of all charges of exploiting the terror attacks.