Clear Street Launches Futures Clearing Services
April 29 2024 - 11:00AM
Business Wire
Latest milestone as Clear Street expands into
new asset classes amid industry consolidation
Clear Street (“Clear Street,” “the Company”), a New York-based
diversified financial services firm, is pleased to announce the
launch of futures clearing and execution services on U.S. exchanges
for global clients, including hedge funds, professional trading
groups, and family offices.
After more than two decades of significant futures commission
merchant (FCM) consolidation, Clear Street now offers emerging
funds to large institutions everything they need to clear, custody,
execute, and finance U.S. equities and options; clear, custody, and
finance fixed-income securities; and clear futures. The news
follows Clear Street’s launch of professional clearing services for
registered market-makers in U.S. equities and options, marking the
first successful entry into the professional clearing market in
close to a decade.
“Intensified competition, increased capital requirements,
technological advancements, and evolving global trading dynamics
have driven substantial FCM consolidation, leaving many
institutional participants like hedge funds, corporates, and
professional trading groups with limited clearing options,” said
Chris Smith, CEO, Clear Street Futures. “The current landscape
underscores the critical need for a new player with technology that
enables firms to navigate the market in real-time amid escalating
volatility, regulatory shifts, and rapid changes.”
Clear Street is a member of the following futures exchanges,
offering access to a range of products, including indexes, rates,
and commodities: CME, ICE US, and NODAL. The Company is actively
pursuing memberships with other major global futures exchanges.
Chris Pento, CEO and Co-Founder, Clear Street, said, “This
launch marks a significant milestone in a multi-year project aimed
at establishing a cohesive prime brokerage and futures offering.
Clear Street is uniquely positioned to disrupt the market by
delivering innovative technology that seamlessly integrates futures
with our comprehensive suite of offerings on a unified
platform.”
In July 2023, Clear Street acquired React Consulting Services,
LLC (“React”) and its proprietary futures clearing platform, BASIS,
in July 2023. BASIS was subsequently integrated into Clear Street’s
existing cloud-native clearing, settlement, execution, and custody
platform. Clear Street currently processes around 2.5% of the
notional U.S. equities volume, equivalent to roughly $10 billion
worth of activity through its platform. The Company concluded a
successful third tranche of Series B funding in December 2023. Led
by Prysm Capital, the raise increased Clear Street’s Series B to
$685 million and the firm’s valuation to $2.1 billion.
Contact Clear Street’s futures clearing services team at
sales@clearstreet.io.
About Clear Street
Clear Street is modernizing the brokerage ecosystem. Founded in
2018, Clear Street is a diversified financial services firm
replacing the legacy infrastructure used across capital markets.
The firm started from scratch by building a completely cloud-native
clearing and custody system designed for today’s complex, global
market. Clear Street’s proprietary platform adds significant
efficiency to the market while focusing on minimizing risk,
redundancy, and cost for clients. Clear Street’s goal is to create
a single platform for every asset class, in every country, and in
any currency.
For more information, visit https://clearstreet.io.
Clear Street does not provide investment, legal, regulatory,
tax, or compliance advice. Consult professionals in these fields to
address your specific circumstances. These materials are: (i)
solely an overview of Clear Street’s products and services; (ii)
provided for informational purposes only; and (iii) subject to
change without notice or obligation to replace any information
contained therein.
Products and services are offered by Clear Street LLC as a
Broker Dealer member FINRA and SIPC and a Futures Commission
Merchant registered with the CFTC and member of NFA. Additional
information about Clear Street is available on FINRA BrokerCheck,
including its Customer Relationship Summary and NFA BASIC | NFA
(futures.org).
Copyright © 2024 Clear Street LLC. All rights reserved. Clear
Street and the Shield Logo are Registered Trademarks of Clear
Street LLC
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version on businesswire.com: https://www.businesswire.com/news/home/20240429911748/en/
Bailey Mullins press@clearstreet.io or SEC Newgate
ClearStreet@SECNewgate.co.uk