ICAP invests in Model Two Zero

Follows initial funding from ICAP’s investment vehicle Euclid Opportunities

LONDON – December 4, 2012 – ICAP plc (IAP.L), the world’s leading interdealer broker and provider of post trade risk and information services, announced today that it has made a Series A investment in Model Two Zero, a company specialising in innovative matching, reconciliation and data transformation software. This investment follows an earlier investment by Euclid Opportunities, ICAP’s vehicle for funding next-generation financial technology.

Model Two Zero will use the funding to launch a next generation reconciliation service built upon the company’s innovative matching and data-translation technologies. The hosted service utilises intelligent algorithms to reduce the time and cost involved in setting up reconciliations, improving operational risk controls, efficiency and flexibility across the industry.

Mark Beeston, CEO of Portfolio Services at ICAP, who has joined Model Two Zero’s board of directors, commented, “Model Two Zero has clearly demonstrated its ability to deliver a range of powerful, efficient and flexible reconciliation services necessary in today's demanding regulatory environment. 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 leading tier-one banks to define key service requirements. A core group of launch customers is currently testing the service in preparation for going live with the service in 2013.

Steve Gibson, Managing Director of Euclid Opportunities noted, “Model Two Zero has made significant progress to validate the potential of its offering with a number of key market participants. We continue to be impressed by the company and look forward to the launch of the service”.

Christian Nentwich and Michael Marconi, co-founders of Model Two Zero, said, “Middle and back offices need new ways of improving efficiency. Solving reconciliation issues is critical in an environment of regulatory and structural upheaval. ICAP’s investment enables us to work with customers to launch an asset-class agnostic service that reconciles any data, in any business process, with little human effort. This will sharply lower cost, increase flexibility and dramatically shorten set-up times.”

Media contacts

Serra Balls                          Head of Public Relations, ICAP          +44 (0) 20 7050 7124
Candice Adam                   Argentus PR                                            +44 (0) 20 7397 2915

About ICAP
ICAP is the world's leading interdealer broker and provider of post trade risk and information services. The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios. For more information go to www.icap.com.

About Euclid Opportunities
Euclid Opportunities offers a seed-funding program to early-stage companies that provide innovative technology in the areas of post-trade risk management, data and other financial market applications. Euclid Opportunities is majority owned by ICAP plc, and forms part of the post trade division of ICAP, which also comprises TriOptima, Traiana, Rematch, Reset and ICAP Information Services. For further information please visit www.euclidopportunities.com

About Model Two Zero
Model Two Zero simplifies complex data problems by making the machine work harder than the human. Our mission is to enable businesses to establish control points and electronic communication links quickly and flexibly, without being delayed by legacy problems or long integration projects. For further information visit www.modeltwozero.com