Founded in 2006, Model Two Zero provides matching, reconciliation and data-translation technologies to financial services firms, including Credit Suisse and JP Morgan.

As well as cash, Icap's incubator offers firms it invests in an "acceleration programme" featuring tailored support and guidance through a network of advisors, domain experts, mentors and market practitioners.

Christian Nentwich, CEO, Model Two Zero, says: "It is clear that our technology has the potential to lead to revolutionary improvements in post-trade business processes. Working with Euclid, Icap and leading market participants now gives us the opportunity to build scale and solve the hard and persistent problems that still keep operations professionals awake at night."

Mark Beeston, CEO, portfolio risk services, Icap, adds: "Global regulatory initiatives are driving demand for a range of powerful and efficient reconciliation services across a number of business areas. This investment is another step as we continue to provide our clients with the industry's best and most innovative post-trade services."