Flow Traders 2015 Annual Report

Flow Traders recently released their 2015 annual report. They made a profit of €$97.3M off a revenue of €$304.7M. A net profit margin of 32%.

Flow Traders mainly engages in prop ETP trading globally. The company wide average compensation is €338K per employee. Some interesting snipplets below.

Flow Traders is founded in Netherlands, while the corporate HQ for Virtu is in US. Not surprisingly, both earn the most of their income from their home country/continent.

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Being able to accurately price the ETPs that we provide liquidity in is vital to the success of our business. Get it wrong, and we lose money or a trade goes to a competitor. It’s that simple. our experience in establishing the pricing relationship between the ETPs and the underlying assets, in a variety of market conditions, means we can offer competitive bid and ask prices, while still covering our trading costs and locking in transaction profit. We achieve this using pre-set hedging strategies, which (where possible) instantly reduce our market exposure, creating a market-neutral position. And it’s these hedging strategies that enable us to trade ETPs in such a way that our Net Trading Income is unaffected by any price movements of the underlying or related securities.
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Read the Flow Traders 2015 Annual Report