Amsterdam, the Netherlands – 18 June 2015. Flow Traders Coöperatief U.A. (“Flow Traders” or the “Company”), a leading technology-enabled liquidity provider operating on a global scale and specialised in providing liquidity in exchange traded products (“ETPs”)[1] announces its intention to proceed with an initial public offering (the “IPO” or the “Offering”) and listing of its ordinary shares (the “Shares”) on Euronext Amsterdam.

Flow Traders highlights

· A leading, technology-enabled liquidity provider operating on a global scale that specialises in providing liquidity in ETPs, enabling market participants to buy and sell ETPs and benefit from increased liquidity and lower overall trading costs;

· Providing liquidity by quoting bid and ask prices for over 4,000 ETP listings, trading in over 11,000 financial instruments and with access to 94 trading venues in 32 countries. Also providing liquidity in ETPs off-exchange in over 20 countries to over 350 institutional counterparties such as banks, asset managers, pension funds, insurance companies, family offices and hedge funds;

· Market-neutral and non-directional trading, with instantaneous automated hedging, seeking to have no net exposure and market risk;

· A regulated firm subject to regulations covering all aspects of its business and the markets in which it operates. Regulatory bodies which exercise, or may exercise, authority over Flow Traders include the Netherlands Authority for the Financial Markets (the “AFM”), the Dutch Central Bank (“DNB”), the U.S. Securities and Exchange Commission (the “SEC”), the U.S. Commodity Futures Trading Commission (the “CFTC”), the Monetary Authority of Singapore (the “MAS”) amongst others;

· Playing a critical role in the growth of global ETP assets under management (“AuM”), as both liquidity provider and authorised participant;

· Anticipated to have significant opportunities for growth from expected continued expansion in global ETP AuM from US$2.8 trillion in 2014 to US$6.0 trillion by 2019[2] (17% compound annual growth rate; “CAGR”) driven by a continued secular shift to passive asset management and more transparent products as investors focus on minimising costs and maximising efficiency;

· Experiencing strong competitive advantages derived from deeply-established, central role in the ETP ecosystem built on more than a decade of liquidity provision expertise, strong ETP issuer relationships, a cutting-edge technology platform, a highly robust risk management framework and global scale enabling efficient expansion and competitive pricing in varying market circumstances;

· From its offices in New York, Amsterdam and Singapore, Flow Traders traded €527 billion of ETPs in 2014, generating €172.7 million in net trading income, €84.1 million in EBITDA at a 49% margin, €67.9 million in profit for the period and a free cash flow conversion of 115%;

· Strong growth with 3-year CAGRs to 2014 of 38% in net trading income, 55% in EBITDA and 57% in profit for the period while growing the value of ETPs traded at a CAGR of 55%, five times faster than the global ETP market[3];

· Q1 2015 financial results demonstrate continued momentum with quarterly net trading income, EBITDA and profit for the period up 110%, 127% and 134%, respectively, year-on-year;

· Highly experienced management and team-driven culture led by co-CEOs Dennis Dijkstra and Sjoerd Rietberg, both with a proven track record of developing and executing Flow Traders’ growth strategy. Strong and broad employee shareholder base with long-term commitment to the Company beyond the Offering.

Dennis Dijkstra, co-CEO of Flow Traders, said:
“This IPO is the logical next step for Flow Traders, commensurate with the scale and status we have established to date as a leading, independent global liquidity provider in ETPs. The listing will increase our visibility and raise our profile with institutional counterparties, regulators, investors and prospective employees. In addition, the listing will support our organic growth strategy and enhance our ability to access capital markets.”

Sjoerd Rietberg, co-CEO of Flow Traders, said:
“As a strong proponent of fair and transparent markets, Flow Traders continues to play a leading role in the development of the fast-growing electronic liquidity provider industry and to help further raise market standards. In so doing, we combine growth, strong free cash flow generation and solid dividends into an attractive total return proposition for shareholders based on our global presence, pricing excellence, risk management focus and cutting-edge technology.”