Flow Traders Explained

Flow Traders
Type:	Public
Industry:	Financial services
Founded:	2004
Hq Location City:	Amsterdam
Hq Location Country:	Netherlands
Key People:	Mike Kuehnel (CEO)
Products:	Securities trading, Market making, High-frequency trading
Revenue:	(2020)
Operating Income:	(2020)
Num Employees:	600
Num Employees Year:	2022

Flow Traders is a proprietary trading firm.^[1] A market maker, it provides liquidity in the securities market by using high frequency and quantitative trading strategies.^[2]

Originally founded in Amsterdam, Flow Traders also has offices in New York, London, Milan, Paris, Cluj, Shanghai, Singapore, Chicago, and Hong Kong.^{[3] [4]}

Activities

Flow Traders continuously quotes bid and ask prices for Exchange Traded Products (ETPs), options, fixed income products, and currencies.^[5] In 2019, Flow Traders announced that it would also begin trading cryptocurrencies.^[6]

One of the world's largest ETP market makers, it provides liquidity for more than 13,000 ETP listings across North America, Europe, and Asia Pacific.^[7] As of 2020, Flow Traders is Europe's largest ETF market maker.^[8]

In April 2020, Flow Traders established the Flow Traders Foundation, a charitable foundation that focuses on poverty alleviation. https://flowtradersfoundation.org/

In 2022, Flow Traders announced the departures of its Chief Risk Officer, Britta Achmann, Chief Technology Officer, Thomas Wolff, and Chief Executive Officer, Dennis Dijkstra. In 2023, Mike Kuehnel assumed the role of CEO at Flow Traders.^[9]

Initial public offering

The company filed for an initial public offering on Euronext Amsterdam on 10 July 2015. The shares were placed at a price of €32 each, with Flow valued at approximately €1.5 billion. Flow Traders floated up to 40% of the company.^[10]

Coronavirus pandemic

During the 2020 COVID-19 pandemic, Flow set up tents in their offices to allow employees to continue trading despite lockdown.^[11] It reported breakout profits in the same year, with profits up 3543%.^[12]

Change of corporate holding structure

On 13 January 2023 Flow Traders announced the completion of the update of its corporate holding structure. As a result of the corporate holding structure update, Flow Traders' ultimate holding company is now Flow Traders Ltd and its shares remain on Euronext Amsterdam.^[13]

Notes and References

1. News: Albergotti. Reed. 2013-08-25. Indictments Expected in Alleged Trading Code Theft. en-US. Wall Street Journal. 2021-03-22. 0099-9660.
2. Web site: Virtu Financial, Flow Traders rise in volatile trade. 2021-03-17. www.ft.com.
3. News: 2016-09-23. Dutch Speed Trader Is Taking on Citadel in U.S. ETF Market. en. Bloomberg.com. 2021-03-17.
4. Web site: Trading firm Flow Traders to seek listing. 2021-03-17. www.ft.com.
5. Web site: Banks and fund managers come back for another bite at bitcoin. 2021-03-17. www.ft.com.
6. Web site: Bitcoin's second coming makes Wall Street think again on crypto. 2021-03-17. www.ft.com.
7. Web site: SEC. Flow Traders U.s. Llc 2020 Annual Report X-17A-5. 2021-03-17. SEC.report. en.
8. Web site: Hadfield. Will. Europe's biggest ETF trader reports blowout profits on Covid market volatility. 2021-03-17. www.fnlondon.com. en-GB.
9. News: 2022-05-10 . Flow Traders Executive Leaves After Swedish Ski Trip Incidents . en . Bloomberg.com . 2023-04-08.
10. News: Bray. Chad. 2015-06-30. Flow Traders I.P.O. Could Value Dutch Firm at Up to $1.9 Billion (Published 2015). en-US. The New York Times. 2021-03-17. 0362-4331.
11. Web site: Company in self-isolation in Amsterdam: 'We have set up tents'. 2021-03-24. Amsterdam Daily.
12. Web site: Molenaar. Door Jeroen. 2020-04-21. 'Happy campers' van Flow Traders maken winstsprong van 35431%. 2021-03-24. Quote. nl-NL.
13. Web site: Bloomberg . Flow Traders Ltd: COMPLETION OF THE CORPORATE HOLDING STRUCTURE UPDATE . www.bloomberg.com/ . Bloomberg . 19 January 2023.