EXCLUSIVE: Clear Street secures regulatory approval for UK launch

Clear Street was approved on October 17 by the Financial Conduct Authority to “hold and control client money”, according to the UK regulator’s register.

New York-based Clear Street has named in its filing Jacinda Fahey, formerly a chief operating officer in prime brokerage at Deutsche Bank, as chief executive and executive director while Chris Pento, chief executive and president of Clear Street, is the UK arm’s chair of the governing body.

Carlos Fernandez, who was most recently chief financial officer at ED&F Man Capital Markets, is Clear Street UK’s executive director, according to the UK regulator’s register.

A spokesman for Clear Street declined to comment on the FCA approval.

While Clear Street has been approved to hold and control client money, the FCA said in its filing: “The firm is unable to commence any regulated activity until it is evidenced to the FCA the firm’s SMF16 and SMF17 has joined the firm.”

Under FCA regulation, SMF16 is a compliance oversight function and SMF17 relates to money laundering reporting, according to the UK regulator.

The FCA approval will come as a boost to the firm which has this year been building its business aggressively in the US.

Clear Street last month said Edward Tilly, the former head of Cboe Global Markets who joined the firm as president in July, will become group chief executive at the end of this year, replacing Pento who is leaving the firm after six years in charge.

Clear Street launched its US futures clearing and execution service in late April just weeks after making available its US equities and options clearing services which the firm described at the time as “the first successful entry into the professional clearing market in close to a decade”.

The US build-out is being managed by Clear Street Futures chief executive Chris Smith, the founder and former chief exec of ED&F Man Capital Markets who joined Clear Street in August 2023, as first reported by FOW.

Andy Volz, the chief operating officer of Clear Street, told FOW in January the firm submitted in November last year its application to the FCA to open in London.

Volz said in January: “The plan for the UK is similar to that in the US, including futures, prime brokerage, both cash and synthetic prime, execution of equities and options, and securities lending.”

Clear Street secured in April 2023 a second tranche of funding worth $270m (£218m), taking its series B round to $435m and valuing the group at that time at $2bn.