Futu Clearing has received a $400m strategic capital injection from its parent company and China-based online brokerage Futu.

The new capital will allow the firm to enhance its operational needs, including clearing and deposits, supporting margin accounts.

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Futu Clearing CEO Ila Jehl said: “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.”

Futu Clearing, which offers execution and clearing solutions to broker/dealers, and RIAs, is said to be the first recipients of Futu’s strategic investments in international expansion.

It was established by Futu in 2018 to provide clearing and settlement services to its clients and correspondents.

Futu’s total user base grew by 58.6% in last year, according to its full year 2020 financials.

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Jehl further said: “As Futu grows, so has the number of transactions handled by Futu Clearing, making it essential that we expand our capacity accordingly.

“The $400m of capital infusion is a strong indication of Futu’ confidence in the US markets and reflects a commitment to meeting the needs of global investors.”

Last March, Futu launched its one-stop investment platform moomoo in Singapore. It also opened its regional headquarters in Singapore to better serve the Southeast Asia region.

It has offices in China, Hong Kong Special Administrative Region, and the US.

In March this year, UK-based financial advisory firm Ascot Lloyd secured investment from funds managed by the Credit Group of American alternative investment manager Ares Management.