Bringing you live news and features since 2006 

Flow Traders enjoys best quarterly trading results to date


Flow Traders has revealed its best quarterly trading results to date with strong performance across all regions. 

NTI increased to EUR213.2 million in 1Q18, against EUR39.3 million in 4Q17 and EUR48.3 million in 1Q17.
Flow Traders’ ETP Value Traded grew 49 per cent quarter on quarter, while the market ETP Value Traded grew 38 per cent quarter on quarter, showing market share gains across all regions. Flow Traders’ reports that fixed costs fell 2 per cent quarter on quarter.
EBITDA margin 1Q18 was 63 per cent compared to 34 per cent in 4Q17 and Net Profit grew to EUR109.7 million, resulting in an EPS of EUR2.36. Under the CRR capital requirement regulation, Flow Traders’ own funds requirement as at 31 March 2018 was EUR151 million, resulting in excess capital of EUR183 million.
The dividend policy remains unchanged with Flow Traders targetting to pay out at least 50 per cent of its net profit. The firm writes that it ‘remains the leading market maker in ETPs in EMEA’ and FTEs grew 4 per cent quarter on quarter to 411 as at 31 March 2018.
The firm writes that market dynamics in the first quarter of 2018 caused volumes traded in the market to increase significantly and assets under management growth to stabilize overall.
The strong growth trend witnessed in the ETP industry in 2017 is expected to continue in 2018 and beyond. The shift in assets from actively managed funds towards passive investments continues to drive ETP growth across all asset classes. Regulation such as MiFID II has improved transparency and levelled the playing field, which has already yielded benefits for the ETP market.
Flow Traders writes that it will continue to focus on growing its ETP liquidity providing activities and rolling out its growth initiatives. FX trading, US off-exchange trading and the growth strategy in APAC are expected to further support the Company’s performance in 2018 and beyond.
Co-CEO Dennis Dijkstra says: “On top of favourable market conditions, our performance in 1Q18 is a direct result of the investments made in the past and the focus Flow Traders has had over the past years. Flow Traders grew its traded volumes this quarter, benefitting from improved market conditions. Furthermore, our increased scale has begun to bear fruit. Looking at CRR and MiFID II, these developments have not limited Flow Traders in its abilities to grow.
“The first impact of MiFID II on the ETP market seems beneficial to us, as we have seen an increase in volumes traded on MTFs that we are connected to. Nevertheless, the implementation of MiFID II and subsequent developments keep impacting market structure, as legislators seek a level playing field in European markets. In addition, we managed to comply with the requirements under the CRR capital regulation on the first reporting date, 31 March 2018.
“Following the Dutch Central Bank’s announcement in November 2017 our implementation of the CRR capital requirements has been managed very well within a short period by our Risk and Finance departments. The results we have witnessed in 2018 so far are a confirmation of our business model, and we will continue to build on the strong foundations and further leverage our leading position.”
Co-CEO Sjoerd Rietberg says: “Taking a closer look at our performance, Flow Traders’ NTI delivered a sharply better performance compared to 3Q15, when we realised our previous record quarter. Market activity was much more concentrated in 1Q18 than in 3Q15, nevertheless Flow Traders managed to realise a sharp NTI increase, confirming the continued success of our investments in trading technology and people. Going forward we will also inform the market about flows traded outside ETPs, as we further diversify our liquidity providing activities into asset classes like currencies. This means that revenue capture in ETPs as a metric is becoming less meaningful. We will continue to focus on maximizing our NTI growth from ETPs and other asset classes.”
CFO Marcel Jongmans says: “As we stated last year, Flow Traders has found the right balance between growing our firm and controlling our cost base. The strong performance in 1Q18 was achieved without major cost increases. Flow Traders was occupied with several important projects in 1Q18, like the CRR capital requirements and the employee participation plan.
“As the results demonstrate, we comfortably meet the regulatory required capital levels under CRR per 31 March 2018. As a result, we reiterate our dividend policy and look forward to the new IFR/IFD regulations, expected to be implemented through 2020. Furthermore, the treatment of Flow Traders’ employee participation plan under IFRS has an impact on the reported variable cash component in the P & L statement. Looking forward, Flow Traders will be able to continue optimising its NTI and returns for its shareholders in 2018 and beyond.”

Latest News

BlackRock's iShares, an undisputed leader among European ETF issuers, pushed further ahead in Q1 with EUR173 billion in trades, triple..
European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..

Related Articles

etf active trading
Latest Morningstar data shows actively managed ETFs’ share of the US ETF market rose to 8.5 per cent at the...
Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by