Overview
Clear Street is a financial technology company founded in 2018 by Uri Cohen, Chris Pento, and Sachin Kumar. Their mission is to modernize the brokerage ecosystem by replacing legacy infrastructure in capital markets.
Key Features and Services
- Cloud-Native Platform: Clear Street's completely cloud-native clearing and custody system is designed to handle global market complexities while minimizing risk, redundancy, and cost for clients.
- Asset Class Capabilities: The company supports U.S. equities, options, fixed-income securities, and futures. In 2023, they expanded to include fixed-income clearing and custody and acquired the cloud-native futures clearing platform REACT.
- Institutional Client Base: Clear Street serves over 450 institutional clients, processing approximately 450 million shares daily with a notional trading value of $20 billion.
Business Developments
- Funding and Valuation: The company raised $685 million in Series B funding, reaching a valuation of $2.1 billion as of December 2023.
- Expansion of Services: Clear Street has launched investment banking, corporate access, and equity research services. The Equity Research Group, established in November 2024, focuses on Disruptive Technology, Energy Transition, and Healthcare sectors.
- Acquisitions and Partnerships: Strategic acquisitions include CenterPoint Securities (2020) and REACT Consulting Services (2023). The company has received investments from firms like IMC Investments and Prysm Capital.
Recognition and Growth
- Awards: Named to CNBC's list of the World's Top FinTech Companies of 2024.
- Operational Metrics: Processes about 2.5% of the gross notional U.S. equities volume daily, equivalent to approximately $15 billion in daily notional trading value.
- Employee Base: Over 600 employees worldwide, with ongoing expansion of senior executives and professionals from finance and technology sectors.
Mission and Goals
- Unified Platform: Aims to create a single platform for all asset classes, countries, and currencies, offering comprehensive clearing, custody, execution, and financing solutions.
- Client-Centric Approach: Emphasizes decision-making based on serving clients' needs effectively. Clear Street has positioned itself as a leader in financial technology, driving innovation and efficiency in the brokerage ecosystem through its comprehensive and client-focused approach.
Leadership Team
Clear Street's leadership team comprises experienced professionals from the finance and technology sectors:
Chris Pento
- Co-Founder and current CEO
- Transitioning to an executive and partner role at White Bay (Uriel Cohen's family office) by end of 2024
- Will remain on Clear Street's Board of Directors
Ed Tilly
- President, appointed July 2024
- Succeeding Chris Pento as CEO at the end of 2024
- Former CEO of CBOE Global Markets, Inc. for a decade
Sean Hendelman
- Chief Executive Officer, Active Trading Division
- 25 years of capital markets experience
- Founder of T3 and co-founder of Public.com
Cory Solomon
- Managing Director, Derivatives
- 20-year industry veteran
- Previous roles at Weiss Multi-Strategy Advisors, Meritage Group, and Bank of America
Charlie Dietz
- Managing Director, Derivatives
- Over 30 years in equity and derivatives trading
- Former Managing Director, Head of Synthetic Equity Trading at Wells Fargo
Wim Shih
- Managing Director, Head of Equity Finance Algos and Automation
- 18 years of experience in global prime finance
- Previously at TD Securities
George Jamgochian
- Managing Director, Head of Capital Introduction
- 20 years of experience in marketing and capital introduction
- Previous roles at TIG Advisors and Goldman Sachs
Ashley DeSimone
- Chief Marketing Officer
- Over 20 years in capital markets communications and investor relations
- Joined from ICR, Inc.
Tom Klein
- Global Treasurer
- Former Managing Director at Credit Suisse
- 18 years at UBS prior to Credit Suisse
Uriel Cohen
- Co-Founder and Executive Chairman
- Working closely with Chris Pento in his new role at White Bay This diverse and experienced leadership team drives Clear Street's mission to modernize global capital markets through innovative financial technology and services.
History
Clear Street, founded in 2018, has rapidly evolved in the financial technology sector. Key milestones include:
Founding and Early Years (2018-2019)
- September 2018: Founded by Uri Cohen, Chris Pento, and Sachin Kumar
- January 2019: Entered prime brokerage market
- July 2019: Serviced first prime brokerage client
- August 2019: Acquired CenterPoint Securities
- December 2019: Began operating as a clearing broker-dealer
Growth and Expansion (2020-2022)
- 2020: Established significant presence in U.S. equities market
- July 2021: Raised over $300 million, processing billion-dollar trades daily
- September 2021: Added U.S. options to asset class roster
- May 2022: Raised $165 million in Series B funding, valued at $1.7 billion
- October 2022: Launched ALTAS (Automated Trading Locates Allocation Systems)
- 2022: Introduced capital introduction and repo businesses, onboarded 100+ institutional clients
Recent Developments (2023-2024)
- June 2023: Began offering investment banking services
- July 2023: Acquired REACT, a cloud-native futures clearing platform
- October 2023: Expanded to fixed-income securities
- December 2023: Raised additional $520 million, increasing Series B to $685 million
- January 2024: Launched corporate access services
- April 2024: Introduced market maker and futures clearing services
Technological Advancements
- Developed cloud-native system to replace legacy infrastructure
- Evolved data platform from initial Postgres, AWS S3, Kubernetes, and Kafka architecture
- Transitioned to ELT data-loading and medallion data warehouse architecture
Current Operations
- Processes 450 million shares daily ($20 billion notional value)
- Supports over $60 billion in customer balances
- Serves 450+ institutional clients
- Plans for international clearing house integration by 2025 Clear Street's rapid growth and innovative approach have established it as a significant player in the fintech industry, continuously expanding its services and technological capabilities to modernize capital markets infrastructure.
Products & Solutions
Clear Street, founded in 2018, offers a comprehensive suite of products and services designed to modernize the brokerage ecosystem. Their offerings include:
Prime Brokerage Platform
- Clearing Services: Handling trade settlement and clearing
- Custody Services: Safeguarding and managing client assets
- Financing Services: Providing security financing and other financial instruments
- Execution Services: Facilitating trade execution for U.S. equities and options
Investment Banking
- Equity Capital Markets: Assisting with equity raisings and related transactions
- Debt Capital Markets: Helping clients with debt issuances and advisory services
- M&A Advisory Services: Providing merger and acquisition advice
- Corporate Access: Facilitating interactions between companies and investors
Additional Services
- Capital Introduction: Connecting investors with potential opportunities
- Repurchase Agreement Services: Offering short-term financing solutions
- Securities Lending: Enhancing capabilities for efficient securities lending and borrowing
- Fixed-Income Securities: Providing clearing, custody, and financing services
Active Trading Solutions
- Studio: An all-in-one portfolio management platform
- API: A robust REST API for algorithmic and quantitative trading strategies
- Virtual Trading Floor (VTF): A collaborative trading environment in partnership with T3 Live
Expanded Offerings
- Futures and Market Maker Services: Launched in April 2024
- ALTAS (Automated Trading Locates Allocation Systems): Introduced in November 2022
- Corporate Access Services: Initiated in January 2024 Clear Street s cloud-native platform aims to replace legacy infrastructure in capital markets, providing a modern and efficient solution for institutional clients and professional traders.
Core Technology
Clear Street s core technology focuses on modernizing capital markets infrastructure with cutting-edge, cloud-native solutions. Key aspects include:
Cloud-Native Infrastructure
- Built entirely on cloud technology, moving away from traditional mainframes and batch processing systems
- Offers greater flexibility, scalability, and real-time data processing capabilities
API-First Approach
- Enables seamless communication between modern systems and legacy infrastructure
- Facilitates easy integration with various clients and market participants
Real-Time Data and Execution
- Provides comprehensive, real-time portfolio views
- Allows trade execution at internet speed, significantly improving upon legacy systems
Legacy System Integration
- Addresses the challenge of integrating with clients $ existing infrastructure
- Acts as a real-time Rosetta Stone, $ translating data between modern and legacy systems
Core Data Process Engine
- Services multiple risk and regulatory requirements
- Simplifies technology stack and ensures compliance across various markets
Advanced Electronic Trading
- Supports ultra-low latency, algorithmic trading, direct market access, and options execution
- Designed to handle complex client requests efficiently
- Provides robust 24/7 support and coverage teams
Expansion and Scalability
- Continuously expanding capabilities to include new asset classes
- Acquisition of React Consulting Services and its cloud-native futures clearing platform, BASIS Clear Street s technology has been recognized with top awards, including the #1 ranking in Global Custodian s 2024 Prime Brokerage Survey, highlighting their commitment to providing a modern, efficient, and scalable platform for capital markets.
Industry Peers
Clear Street, a cloud-native financial technology firm, operates in a competitive landscape with several notable peers and competitors:
Major Competitors
- TD Cowen
- Financial services firm providing alternative investment management, investment banking, research, and sales and trading services
- Listed on NASDAQ (COWN)
- BTIG
- Global financial services firm specializing in investment banking, institutional trading, research, and brokerage services
- South Street Securities Holdings
- Specializes in capital markets, offering repurchase agreement market participation and other securities-related services
- Interactive Brokers
- Technology-focused company providing online trading solutions and direct global access to various financial instruments
- Jefferies
- Investment banking and capital markets firm offering advisory, sales and trading, research, and wealth and asset management services
- Listed on NYSE (JEF)
Other Notable Competitors
- Noble Markets
- Halborn
- Trail of Bits (focused on specific niches within fintech and financial services) Clear Street distinguishes itself through its cloud-native platform, offering a comprehensive suite of services including clearing and custody, execution, prime financing, and investment banking. The company s focus on enhancing access, speed, and service for various market participants sets it apart in the competitive landscape of financial technology and brokerage services.