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Futu’s U.S. Clearing License Confirmed, Stock Rises 2%

Anna Vodopyanova 2019-06-04 00:00 AM

Futu Holdings Ltd. (Nasdaq: FHL) announced that it has obtained a clearing license to launch its brokerage line in the United States, sending its shares up 2 percent Monday morning, to $11.19 apiece.

The U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) have completed the evaluation of Futu’s regulatory compliance, research and development capabilities, financial strength, and a number of other performances, according to the company’s statement today.

Futu’s chairman and chief executive officer, Leaf Hua Li, commented: “I believe our strong technology capabilities will ensure that our independent clearing system is highly reliable and efficient, and that it provides the same smooth transaction experience to which our users have become accustomed.”

In an interview with Futu last month, Arthur Chen, its chief financial officer, said the launch of its U.S. product, an online trading app called MooMoo, is yet unscheduled, as the company first and foremost aims to ensure its usability. 

Based in Hong Kong, the tech-driven online brokerage firm backed by Tencent Holdings Ltd. (HKEX: 0700), became publicly traded on Wall Street in March and has since announced a number of developments, among which was propelling toward its U.S. launch.