Up Fintech to Obtain U.S. Self-clearing License in Third Quarter

The U.S. entity of the Chinese online brokerage company will obtain a self-clearing license in the U.S. after the acquisition of Marsco later this year.
Binwei WangJul 03,2019,06:55

An online broker serving Chinese investors, Up Fintech Holding Ltd. (Nasdaq: TIGR), its wholly-owned US subsidiary, Tiger Fintech Holdings, Inc. has signed a final acquisition agreement with Marsco Investment Corporation.

According to the definitive agreement, Tiger will acquire a 100 percent stake in Marsco for the total of $9.4 million in a combination of cash and Class A ordinary shares of UP Fintech. The deal has been unanimously approved by the board of directors of both parties and is expected to be completed in the third quarter of this year, which also means UP Fintech will obtain a self-clearing license in the U.S. soon.

The stock of Up Fintech decreases 1.28 percent in trading of $5.39 on Tuesday.

Marsco is a U.S. online brokerage service platform which found in 1986 and is a clearing member of the US Depository Trust and Clearing Corporation.

Tianhua Wu, chief executive officer and director of UP Fintech said, “I am very pleased to have Marsco joining Tiger Fintech. Marsco has a good track record for the past 30 years. It brings in rich broker dealer experience in execution and clearing that will further solidify our position as the leading online broker with proprietary technology from front end to back end. We believe this transaction will provide us with numerous synergies to accelerate our growth in the U.S and greatly enhance user experience.”

“We at Marsco are very excited to become part of the Tiger Fintech team. We believe that the combination of Tiger's advanced technology driven platform with Marsco’s self-clearing and back office expertise will offer customers an outstanding combination of leading-edge technology, innovative products and competitive pricing,” added by Mark Kadison, co-founder and chief executive officer of Marsco.