New York-based independent prime broker Clear Street is set to expand into the futures market – subject to regulatory approval – with the acquisition of software developer, React Consulting Services.
React’s proprietary, cloud-native futures clearing platform, BASIS, will be integrated into Clear Street’s existing platform – which currently encompasses cloud-native clearing, settlement, execution and custody. With this move, Clear Street’s offering will finance US equities, options, fixed income, and futures.
The integration is set to be phased, beginning with connecting the platform to futures exchanges in early 2024.
Sachin Kumar, co-founder and chief technology officer at Clear Street, said the acquisition will accelerate the company’s product development timeline and added: “Integrating BASIS will give our customers seamless access to futures alongside our equity, options, and fixed income offering in one platform.
“[This acquisition] brings us closer to a single platform for every asset class, in every country, and in any currency,” he added.
Ten employees from React, including the business’ co-founders Pat Mayo and Dave Evans will join Clear Street, with Mayo and Evans taking on the roles of managing directors at Clear Street Technology. All new employees will report directly to Kumar.
“The React team shares Clear Street’s vision for a unified prime brokerage platform and believes deeply in the Company’s mission to build modern financial infrastructure for today’s institutions,” said Mayo.
Last month, Clear Street announced that it was set to launch a new investment banking business named Strategic Advisory Services to offer strategic advisory, transaction and creative capital solutions to emerging growth companies.