Futu Clearing Inc. is an indirect, wholly-owned subsidiary of Futu Holdings that provides execution and clearing solutions to broker-dealers and registered investment advisers, facilitating trading of U.S. equities for clients worldwide. Established in 2018 and based in Palo Alto, the firm serves as the backbone for clients trading U.S. equities and offers clearing, deposits, and support for margin accounts. The company announced a $400 million strategic capital injection from parent Futu Holdings to expand its U.S. operations and scale counterparty relationships. Management says the funding will be used to scale day-to-day operational needs — including clearing and deposits, supporting margin accounts — and to maintain high-quality, uninterrupted trading services globally. The parent, Futu Holdings, earlier issued 10,925,000 ADSs (including the sale of 1,425,000 ADSs via the underwriters' option) to raise capital to support margin financing, international expansion, license applications and potential investments and acquisitions. According to Futu's full-year 2020 financials, Futu's total user base grew by 58.6% in 2020, reflecting rising transaction volumes handled by Futu Clearing.

Total raised

$400M

Funding rounds

1

Latest round

Equity

Latest activity

May 2021