Clear Street enters futures clearing market with React acquisition

New York-based prime broker Clear Street has acquired React Consulting Services, marking its entry into the futures clearing market.

React’s proprietary cloud-based futures clearing platform, BASIS, will be integrated into Clear Street’s existing cloud-based clearing, settlement, execution and custody platform.

The full integration of BASIS is expected to occur in phases beginning in early 2024, and, once completed, will offer clients the ability to clear, custody and finance US equities, options, fixed income and futures, the firm says.

Ten new employees will join Clear Street from React, including co-founders Pat Mayo and Dave Evans. Both Mayo and Evans will assume the role of managing director of Clear Street Technology.

This group of employees will all report to Sachin Kumar, co-founder and chief technology officer of Clear Street.

The acquisition follows Clear Street’s recent US$435 million series B capital raise.

Commenting on the acquisition, Mayo says: “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.”

Kumar adds: “This acquisition accelerates our product development timeline and brings us closer to a single platform for every asset class, in every country and in any currency.”