AtlasClear Holdings Inc (NASDAQ: ATCH) is a financial services technology company that provides trading, clearing, settlement, and banking infrastructure to other financial services firms. Revenue is expected to come from prime brokerage and prime banking services offered to broker-dealers, hedge funds, and similar institutional clients, though the company reported no operating history at the time of its 10-K filing dated April 16, 2024. AtlasClear was formed through a business combination that closed in February 2024, combining intellectual property from Atlas FinTech and Atlas Financial Technologies Corp., the acquired Pacsquare technology assets, and the acquisition of broker-dealer Wilson-Davis & Co. The company targets financial services firms with annual revenues up to $1 billion as its primary customer base. As of the filing date, AtlasClear had no prior operating history and its platform was still in development under a six-year exclusive arrangement with Pacsquare.

Revenue model

Planned transactional and service-fee revenue from prime brokerage and prime banking services directed at financial services firms. No revenue was reported in the filing, as the business combination closed after the fiscal year ended December 31, 2023.

Products and services

AtlasClear Platform: a proprietary trading, clearing, and settlement platform under development by Pacsquare under an exclusive six-year agreement. Rubicon FX: a middle-office system for foreign exchange clearing, settlement, quote management, order pairing, and risk and margin monitoring. SURFACExchange (SE): a fully electronic, anonymous central limit order book for FX options designed for institutional clients, not yet operational as of the filing date. Pacsquare trading applications: real-time trading with options up to Level 6, digital account opening, AML risk assessment, and cloud-based microservices architecture.

Customers and end markets

Target clients are financial services firms with annual revenues up to $1 billion, including brokerage firms, hedge funds, and pension funds. Secondary targets include fintech firms seeking trading and investing infrastructure and non-financial firms seeking to add financial services capabilities.

Value-chain role

Business-to-business infrastructure provider sitting between end investors and financial markets, supplying clearing, settlement, prime banking, and prime brokerage technology to financial services firms rather than serving retail customers directly.

Geographic exposure

No geographic breakdown disclosed in the filing excerpts.

Source: SEC 10-K, filed 2024-04-16

Industry: Finance Services Peers: BLACKSTAR ENTERPRISE GROUP, INC. Lvpai Group Ltd Morgan Stanley Siebert Financial Corp Morgan Group Holding Co MDB Capital Holdings LLC