Futu becomes first online brokerage to receive approvals-in-principle for all SGX memberships
DIGITAL brokerage Futu Singapore, a wholly-owned subsidiary of Nasdaq-listed Futu Holdings, has received approvals-in-principle (AIP) for all Singapore Exchange (SGX) memberships, the company announced in a press statement on Thursday (Feb 10).
This makes it the first online brokerage, through its trading platform Moomoo, to receive AIPs for full trading and clearing memberships for securities and derivatives in Singapore.
With these AIPs, Futu Singapore, which is a capital markets services licence holder regulated by the Monetary Authority of Singapore (MAS), will be admitted as a clearing and trading member of both SGX Securities Trading and SGX Derivatives Trading.
In addition, it will hold clearing membership in SGX subsidiary The Central Depository, as well as become a depository agent of the financial institution.
Through the memberships, Futu Singapore will have better access to SGX's investment and risk management solutions, the press statement added. It will also be able to tap onto the local bourse operator's pool of international investors.
These memberships will enhance security and efficiency for the execution of trades on its Moomoo platform, supporting multiple fast transactions.
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Gavin Chia, managing director of Futu Singapore, said the AIPs, which come less than a year since it entered the Singapore market, is a "vote of confidence" in the company'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 added, noting that the AIPs will further strengthen Futu's business imperatives.
Separately, Futu Singapore has received approval from MAS to start its business as an exempt financial adviser, providing financial advisory services on investment products and promoting analyses and reports on them.
The platform had achieved over 220,000 users in Singapore within 3 months of its launch in March 2021.
Its parent company, Hong Kong-based Futu Holdings, is backed by Chinese conglomerate Tencent and has 17 million users globally, through its presence in Singapore, US, Australia and Hong Kong.
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