The unspecified funding deal follows an earlier investment in January by Euclid Opportunities, Icap's start-up incubator.

Model Two Zero says it will use the funding to launch a new multi-asset class reconciliation service built upon the company's matching and data-translation technologies. The hosted service utilises intelligent algorithms to reduce the time and cost involved in setting up reconciliations.

Mark Beeston, CEO of portfolio services at Icap, who has joined Model Two Zero's board of directors, comments: "The company is highly complementary to our existing business and we look forward to Model Two Zero establishing itself as a key piece of the new post-trade technology landscape".

Model Two Zero has been working with a group of tier-one banks to define key service requirements for its new reconciliation bundle. A core group of launch customers is currently testing the service in preparation for going live in 2013.

The six-year old company lists JPMorgan and Credit Suisse among its client roster.