TECHNOLOGY

ICAP invests in derivatives FinTech amid shifting focus

ICAP joins investors in $13.3 million deal with OpenGamma, as it shifts focus towards technology.

By Hayley McDowell hayley.mcdowell@strategic-i.com  October 06, 2016 11:43 AM GMT

ICAP has become one of several companies to invest $13.3 million in derivatives FinTech firm OpenGamma, as it continues its push in the technology space.

OpenGamma – which provides derivatives risk analytics through its software – will use the funds raised to “address increasing demand,” it said.

Venture capital firm Accel and ICAP are leading the funding, alongside former CEO of SunGard, Cristóbal Conde, who joined OpenGamma’s board in 2014.

OpenGamma’s risk analytics allows users to measure and compare margin requirements across cleared and non-cleared derivatives.

Jenny Knott, CEO of ICAP’s post-trade risk and information division, said the investment aligns with its “strategic focus on market structure.”

ICAP’s investment echoes its recent shift towards technology amid the impending completion of the sale of its global hybrid voice broking business to Tullett Prebon.

The deal is expected to complete before the end of 2016.

ICAP will rebrand as NEX Group following the completion and will focus entirely on electronic markets and post-trade business.

Knott added the investment reflects ICAP’s belief that “the derivatives markets are embracing innovative solutions to address capital and operational challenges.”