Ian Hannam's legal team has branded the UK regulator's market abuse case against the former chairman of capital markets at JP Morgan Cazenove "incoherent", as his attempt to overturn the decision entered its second day.

Hannam was fined £450,000 in April last year by the Financial Services Authority for two instances of market abuse, concerning emails that Hannam sent in September and October 2008, which the regulator said at the time contained inside information about Heritage Oil, a client of the bank and Hannam.