Futu Singapore, which is a subsidiary of Nasdaq-listed Futu Holdings and operating as moomoo, has gained the status of a full-service digital broker in Singapore.
Announced on Thursday, the company has become a Trading and Clearing Member of Singapore Exchange Derivatives Trading Limited and a Trading Member of Singapore Exchange Securities Trading Limited.
Further, the entity will hold a clearing membership with the Central Depository (Pte) Limited, a subsidiary of the SGX Group, and will become a depository agent.
“Receiving all the memberships from SGX Group is a significant milestone for our company as we move toward strengthening our market leading position,” said Futu’s Chairman and CEO, Leaf Hua Li.
The full membership status will allow the digital broker to execute and settle transactions through its own clearing system.
Plan B?
Futu is backed by the Chinese internet giant, Tencent, which is its second-largest shareholder after billionaire founder, Li. The platform targets Chinese retail traders with trading services with foreign-listed stocks, primarily in the markets of Hong Kong and New York.
The approval came when Futu is pushing to expand its base outside its core Chinese market where it is operating in a grey area. Earlier, a top-ranking Chinese regulatory official pointed out that Futu and other trading platforms like it are operating illegally in China, raising concerns about their future in the country.
Meanwhile, Singapore, with its rising retail trading demand, has become a primary target for Futu. According to the company, 21.5 percent of the population of the city-state are moomoo users.
“Futu Singapore is primed to play a prominent role in increasing retail participation in Singapore's market, with millions of users worldwide across Futu Holdings' investment platforms,” SGX Group’s Senior Managing Director and Head of Global Sales and Origination, Pol de Win said.
Meanwhile, Futu recently partnered with market analytics tools provider, TipRanks to enhance services for its Chinese clients.
