Futu's U.S. Subsidiary Prepares to Provide Broker-dealer, Clearing Services

Futu Clearing Inc. will be able to offer the full cycle of client trades and maintain custody of its clients' assets, the company said.

Author: CapitalWatch Staff   

Futu Holdings Ltd. (Nasdaq: FHL) clarified on Thursday its previous announcement related to obtaining the U.S. clearing license.

The Hong Kong-based tech-driven online brokerage platform said in a statement today that its subsidiary in the U.S., Futu Clearing Inc., has been granted membership as a U.S. broker-dealer by the Financial Industry Regulatory Authority (FINRA). The membership includes the capacity to provide clearing services.

The company stated, "With FINRA's membership and Futu's proprietary systems working with our licensed version of InteliClear's Post Trade Solutions the company will be able to provide clearing, settlement and asset custody services to customers and other introducing brokers in the U.S, which will enable Futu Clearing Inc. to capture the full cycle of client trades and maintain custody of its clients' assets."

In an interview with Futu last month, Arthur Chen, its chief financial officer, said the launch of its U.S. product, an online trading app called MooMoo, is yet unscheduled, as the company first and foremost aims to ensure its usability. 

Based in Hong Kong, the tech-driven online brokerage firm backed by Tencent Holdings Ltd. (HKEX: 0700), became publicly traded on Wall Street in March and has since announced a number of developments, among which was propelling toward its U.S. launch.

Shares in Futu were trading up nearly 2 percent intraday Thursday, at $9.90 per American depositary share.