Futu Clearing Inc. Secures $400M to Expand US Operations
Futu Clearing Inc. has secured a strategic $400 million capital injection from its parent company, Futu Holdings (Nasdaq: FUTU), to bolster US operations and international expansion efforts. This funding will enhance Futu Clearing's ability to support trading activities and improve clearing, margin accounts, and service quality for clients globally. In 2020, Futu's user base grew by 58.6%, indicating strong market demand. CEO Ila Jehl emphasized this investment reflects Futu Holdings' confidence in the US markets and commitment to meeting global investor needs.
- Secured $400 million capital injection for expansion.
- User base grew by 58.6% in 2020, indicating strong demand.
- Increased capacity to support margin accounts and trading.
- None.
PALO ALTO, Calif., May 10, 2021 /PRNewswire/ -- Today Futu Clearing Inc. announced it received a strategic capital injection in the amount of
"We are pleased with the injection of capital. As we seek to grow, this amount of funding allows us to expand our counterparty relationships in the industry, where the cost of capital makes it prohibitive for some members of the community to secure this level of funding," said Ila Jehl, CEO of Futu Clearing.
With this influx of capital, Futu Clearing will be able to scale its day-to-day operational needs, including clearing and deposits, supporting margin accounts, and maintaining its high quality services and uninterrupted trading experience globally.
Earlier this year, Futu Holdings Limited issued an additional 10,925,000 ADSs, including the sale of an aggregate of 1,425,000 ADSs by Futu Holdings Limited pursuant to the full exercise of the option by the underwriters to purchase additional ADSs to raise capital that will better support the growing demand in margin financing, international expansion, new license applications, potential investment and acquisition opportunities.
According to Futu's full year 2020 financials, Futu's total user base grew by
"As Futu Holdings grows, so has the number of transactions handled by Futu Clearing, making it essential that we expand our capacity accordingly," continued Jehl. "The
For more information, please visit https://www.futuclearing.com/.
About Futu Holdings Limited
Futu Holdings Limited (NASDAQ: FUTU) is an advanced technology company transforming the investing experience by offering a fully digitized brokerage and wealth management platform. Pursuing a massive opportunity to facilitate a once-in-a-generation shift in the wealth management industry and build a digital gateway into broader financial services. The organization's primary fee-generating services include trade execution and margin financing which allow its clients to trade securities, such as stocks, warrants, options, futures and exchange-traded funds, or ETFs, across different markets. Futu enhances the user and client experience with market data and news, research, as well as powerful analytical tools, providing them with a data rich foundation to simplify the investing decision-making process. Futu has also embedded social media tools to create a network centered around its users and provide connectivity to users, investors, companies, analysts, media and key opinion leaders.
About Futu Clearing Inc.
Futu Clearing Inc. provides execution and clearing solutions to Broker/Dealers, and Registered Investment Advisers (RIAs). Futu Clearing is an indirect, wholly-owned subsidiary of Futu Holdings Limited (Nasdaq: FUTU). Futu Clearing was established in 2018 to provide clearing and settlement services to its clients and correspondents. Futu Clearing provides robust, modern technology and professional, experienced support.
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SOURCE Futu Clearing Inc.
FAQ
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