Clear Markets Holdings, Inc.

Clear Markets Holdings, Inc. is a US-based company that specializes in innovative electronic trading solutions, focusing on interest rate swaps and cryptocurrency derivatives to enhance trading efficiency and compliance. Clear Markets Holdings, Inc. is involved in electronic trading solutions for financial derivatives.

Founded in 2012 and headquartered in Charlotte, US, the company has pivoted its focus to include cryptocurrency derivatives. The founder, Shawn Dorsch, has a history in financial technology ventures. In July 2018, Clear Markets raised USD 9 mn in venture funding from SBI Holdings, bringing the total amount raised to USD 9 mn and completing 2 deals since its inception. Clear Markets specializes in electronic trading solutions, particularly in interest rate swaps and cryptocurrency derivatives.

Their core offerings feature a Swap Execution Facility (SEF) that allows clients to execute and manage swap transactions electronically, while ensuring adherence to legal and regulatory standards. The platform includes risk management techniques for trading cryptocurrency options through a multi-custodian collateral network. Clear Markets caters to a diverse clientele, including institutional investors and trading firms in major financial cities such as Tokyo, London, New York, and Charlotte, focusing on promoting transparency and addressing counterparty credit risk. Clear Markets generates revenue primarily through transaction fees linked to its electronic trading services.

Clients utilize the SEF platform for executing trades, where fees are applied based on transaction volume and type. The firm's revenue model is predominantly B2B, serving institutional clients trading interest rate swaps and cryptocurrency derivatives. Partnerships with clearinghouses, such as Japan Securities Clearing Corporation (JSCC), enhance their service offerings and ensure compliance, while the fee structures are competitive within the electronic trading marketplace. To support its growth initiatives, Clear Markets plans to utilize the recent funding of USD 9 mn raised in July 2018 to enhance its product offerings and expand into new geographic regions.

The company aims to introduce new products that leverage advanced risk management solutions while targeting expansion in markets across Asia and Europe by 2020. This investment will facilitate the development of innovative trading solutions that align with evolving market demands.