Chinese Online Broker Futu Gets Singapore Trading Approval

Futu Holdings Limited, a popular online brokerage and wealth management platform based in China, has announced that its Singapore subsidiary, Futu Singapore Pte. Ltd., has obtained approvals-in-principle (AIP) to serve as a Depository Agent of The Central Depository (Pte) Limited (CDP), a Trading Member of Singapore Exchange Securities Trading Limited (SGX-ST) and Singapore Exchange Derivatives Trading Limited (SGX-DT), and a Clearing Member of The Central Depository (Pte) Limited (CDP), Singapore Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Securities Clearing Limited (SGX-SC) and Singapore Exchange Derivatives Clearing Limited (SGX-DC). Futu Singapore also said that it has received an Exempt Financial Adviser (EFA) status from the Monetary Authority of Singapore (MAS).

It is less than a year since the AIPs entered the Singapore market. The announcement therefore makes Futu Singapore the first online brokerage, through its trading platform Moomoo, to receive such approvals for full trading and clearing memberships for derivatives and securities in Singapore. Through the memberships, the firm will have better access to SGX's investment and risk management solutions and would be able to tap onto the local stock exchange operator's pool of international investors. Such memberships will also enhance efficiency and security for the execution of trades on its Moomoo platform, supporting multiple fast transactions.

After ‘getting formal admission into the above-mentioned memberships, Futu Singapore expects to offer relevant trading, clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term, and investment advisory services in Singapore. The announcement is set to enable the company to leverage its products and services offerings, and therefore further strengthen its presence in the Singapore market.

Gavin Chia, managing director of Futu Singapore, said that obtaining the AIPs is a "vote of confidence" in the firm's business strategy and vision. “Since we entered the Singapore market, we have been committed to deeply understand the pain points of retail and institutional investors, and from there, provide them with better investment experiences," he stated, noting that the AIPs would further strengthen Futu's business imperatives.

Responding to Consumer Demands

In November 2020, Futu Holdings saw strong financial results with significant growth in all major departments. The company witnessed a 136% year-over-year increase in the number of clients during that year, which contributed to such impressive growth.

In December last year, Futu acquired its Australian-based subsidiary, Futu Securities, to roll out its online brokerage and other financial services in Australia. The platform was also already launched in the US and Singapore. In March last year, Futu launched moomoo in Singapore as its regional headquarters to better serve the Southeast Asia region. Also, in May last year, Futu injected a $400m strategic funding to ramp up its operational needs, including clearing and deposits, supporting margin accounts.