Clearing is a company.
Clearing has raised $20.0M across 1 funding round.
Key people at Clearing.
Clearing has raised $20.0M in total across 1 funding round.
Key people at Clearing.
Clearing has raised $20.0M in total across 1 funding round.
Clearing's investors include 305 Ventures, Arrive, Bling Capital, Curie.Bio, Founders Fund, Great Oaks Venture Capital, Khosla Ventures, LGF, Operator Partners, Ribbit Capital, Sequoia Capital, Streamlined Ventures.
Clearing firms, also known as clearing houses or clearing corporations, are financial institutions that act as intermediaries in securities and derivatives trades, ensuring smooth settlement, risk management, and market stability.[1][2][4] They confirm trades, match buyers and sellers, manage collateral and margin requirements, reconcile discrepancies, and facilitate the transfer of funds and securities, reducing counterparty risk by becoming the buyer to every seller and seller to every buyer.[1][3][6][7] Major players like DTCC subsidiaries (NSCC, FICC) handle nearly all U.S. equities and fixed income clearing, processing trillions in value annually, while others like Options Clearing Corporation (OCC) specialize in derivatives.[2][6]
These firms serve broker-dealers, hedge funds, institutional traders, and exchanges, solving core problems like trade settlement failures, credit/market/operational risks, and inefficiencies in high-volume markets.[1][3][4] They promote market integrity under strict SEC and FINRA oversight, with specialized types offering cross-margining for multi-market positions.[1][7]
Clearing firms evolved from the need to mitigate risks in growing financial markets, with modern U.S. structures tracing to the mid-20th century amid rising trading volumes post-World War II.[6] Key milestones include the National Securities Clearing Corporation (NSCC), founded in 1976 as a DTCC subsidiary to centralize broker-to-broker equity, bond, and UIT clearing, addressing fragmentation in manual processes.[2][6] The Options Clearing Corporation (OCC), established in Chicago, emerged to handle equity derivatives for exchanges, expanding to futures and securities lending.[6]
Pioneers like these built on earlier exchange-affiliated models, driven by regulators and market participants seeking efficiency; for instance, DTCC's formation consolidated prior depositories, enabling automated settlement of massive volumes like $446 trillion in 2023 securities.[2] Independent firms like ETC and AXOS later filled gaps for smaller brokerages lacking in-house capacity.[4]
Clearing firms underpin the tech-driven financial ecosystem by enabling high-frequency trading, algorithmic execution, and 24/7 global markets through automated risk controls and straight-through processing.[2][4] They ride trends like digitization and real-time settlement (e.g., T+1 rules), where timing reduces exposure in volatile, tech-fueled markets like crypto-adjacent derivatives.[1][6] Favorable forces include rising volumes from retail apps and AI trading, plus regulatory pushes for CCPs to enhance stability post-2008 and 2020 volatility.[7]
They influence ecosystems by partnering with fintech brokerages (e.g., Robinhood via third-party clearers), lowering barriers for startups, and fostering innovations like blockchain pilots for faster custody—positioning them as enablers of scalable, resilient tech-finance integration.[4][5]
Clearing firms will expand into tokenized assets, AI-driven risk models, and cross-border interoperability, driven by regulations like DORA and ISO 20022 for instant settlements.[2] Trends like quantum-secure clearing and climate-risk integration could amplify their role, with leaders like DTCC pioneering while nimbler firms capture fintech niches. Their influence may evolve from invisible backbone to strategic partners in decentralized finance, ensuring stability as markets scale—reinforcing their mission as the unglamorous glue of efficient trading.[1][4]
Clearing has raised $20.0M across 1 funding round. Most recently, it raised $20.0M Seed in May 2021.
| Date | Round | Lead Investors | Other Investors |
|---|---|---|---|
| May 1, 2021 | $20.0M Seed | 305 Ventures, Arrive, Bling Capital, Curie.Bio, Founders Fund, Great Oaks Venture Capital, Khosla Ventures, LGF, Operator Partners, Ribbit Capital, Sequoia Capital, Streamlined Ventures, Adrian Aoun, Samvit Ramadurgam, Sohail Prasad, Steve Chen |
