LONDON -- Anti-competition authorities may probe activity by large traders on the London Metal Exchange that also own warehouses, including investment bank JP Morgan, after lawmakers raised concerns.

A parliamentary committee said in a report it was concerned that the same firms that trade metals were able to hold large amounts of metal stored on the LME, the world's top metals exchange, and alerted competition authorities.

Controversy has swirled in recent months after one party gained control of up to 80 percent of lead stocks at the same time as cash premiums for the metal soared.

The Office of Fair Trading (OFT) said it was considering a report by parliament's Science and Technology Committee that referred to allegations of anti-competitive behaviour.

"There is no formal investigation open, though as always we would consider any complaints we receive," an OFT spokeswoman said.

The LME denied any improper activity was taking place and said robust regulations were already in place regarding warehouses.

The concerns by the committee emerged in a report that was largely about the availability of strategic metals, but also touched upon the phenomenon over the past few years of metals warehouses being purchased by trading houses.

"We would be concerned if a dealer were undermining the effective functioning of the market and we look for assurance that the market is functioning satisfactorily," the committee said in the report.

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