Today Futu Clearing Inc. announced it received a strategic capital injection in the amount of $400 million from its parent company, Futu Holdings, Ltd (Nasdaq: FUTU). As the backbone that facilitates trading of US equities for clients across the globe, Futu Clearing is one of the first recipients of Futu Holdings’ strategic investments in international expansion.
“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 58.6% in 2020.
“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 $400 million of capital infusion is a strong indication of Futu Holdings’ confidence in the U.S markets and reflects a commitment to meeting the needs of global investors.”
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.
SOURCE Futu Clearing Inc.