Michael Spencer, the chief executive of Icap, said today he expects further consolidation in the exchange and interdealer broking sector, as the business models of market intermediaries continue to come under pressure from overcapacity and dwindling margins.

Spencer said he "would wish consolidation" on the interdealer broker sector in order to remove some of the "overcapacity" it faced in traditional voice-brokered markets, such as over-the-counter derivatives trading.