Clear Street, founded in 2018, is positioning itself as a significant player in the future of clearing services by using modern technology, efficient operations, and innovative thinking. The firm, which started with the ethos of modernizing prime brokerage, is building on its technology developed from the ground up and expanding its reach into fixed income and Treasury clearing. In 2023 it added a Futures Commission Merchant (FCM) and earned approval as a CME Group clearing member. Brent Posner, COO of Clear Street Futures, shared insights into the company’s evolving approach to clearing and risk management during an interview with John Lothian News at the FIA Expo in Chicago. “The challenge of 24/7 clearing is really about banking and staffing,” he said. “The largest risk is the weekend trading, where the banking system isn’t operating on a 24/7 model. The challenge is managing the risk profile of both our customers and the firm during times when the banking system can’t support margin loss.” Clear Street’s approach is rooted in technology innovation, allowing it to offer in-house developed tools to its clients. Posner noted that the firm’s cloud-based infrastructure sets it apart. Clear Street’s platform is designed to support multi-asset class trading, which allows clients to manage both equities and fixed-income positions in real time. Posner sees this as key to the firm’s future success as the industry moves toward greater central clearing and integration across asset classes. The firm’s ability to scale quickly is another advantage, according to Posner. He said Clear Street’s cloud infrastructure allows it to expand on demand. “We are very well prepared for increased volumes, and we are developing real-time interfaces for our customers,” Posner said, which will allow customers to interact with their positions and risk profiles. Clear Street’s focus on real-time access and transparency aims to empower clients to better understand how their portfolios react in an ever-changing market environment. “We’re trying to really crack open all of the information so the customers can be more knowledgeable in how their portfolios are reacting in the real time market environment.,” Posner said.