(Yicai Global) July 3 -- Up Fintech Holding, a Chinese brokerage also known as Tiger Brokers that allows Chinese investors to trade stocks in Hong Kong and the US, will acquire US securities firm Marsco Investment for USD9.4 million to obtain a clearing license in the States, which will reduce its costs.

The two parties' boards of directors have approved the acquisition plan that is expected to be completed in the third quarter, the Beijing-based buyer said in a statement yesterday. Xiaomi-backed Up Fintech will pay in equity and cash. 

The move ups the ante in rivalry between Up Fintech and Tencent-backed Futu Holdings as the latter secured a clearing license in the US in June, becoming the first Chinese firm to do so. The permits will allow the two companies to conduct their US clearing businesses by themselves instead of outsourcing. 

With the license, Up Fintech may also do margin trading independently and thus earn more in revenue, tech information website Leiphone reported.

Up Fintech [NASDAQ: TIGR] went public in March while its share price has more than halved since then to close at CNY5.20 (80 US cents) yesterday. 

Founded in 1986, New Jersey-based Marsco is a clearing member of the US Depository Trust and Clearing.

Editor: Emmi Laine