ICAP to cut jobs in cash equities cull

ICAP – the world’s biggest interdealer broker – said it would scale back its full-service cash equities business in Europe and Asia at the cost of £51m and up to 114 jobs.

Conservative party co-treasurer Michael Spencer runs the firm which issued a profit warning last month.

A total of 114 traders and analysts will be hit by the cutting of the majority of its unprofitable cash equities business.

The business will have lost £25m in the financial year to the end of this month, ICAP said.

But the company is keeping its cost execution-only cash equities businesses in London, Brazil and the US, while shedding the rest.

Spencer said: "We have made a series of significant investments during the past ten years, which have successfully expanded and diversified our business.

"However, while a number of our cash equities businesses are performing well, the expansion into full service agency cash equities in Europe and Asia has failed to match up to our expectations. After a thorough review we have therefore decided to withdraw from the full service offering."