Flow Traders’ CEO Dennis Dijkstra did not specify when the IPO would take place, although the New York Times reported that the company plans to start trading on Amsterdam’s Euronext exchange in July.
Highlights Amsterdam's growing role on the electronic trading stage
As Bloomberg reported, Flow Traders is one of several Amsterdam-based “high-frequency” trading firms that are among the largest in the world; others include Optiver and IMC BV. Flow Traders was founded in 2004, and currently has about 160 employees in Amsterdam, with additional offices in Singapore, New York, and Romania.
Amsterdam as the logical choice
Amsterdam is the perfect location for this kind of technology-driven trading hub. It was the first European city to establish an options market (the European Options Exchange, founded in 1978). And long before that, the Dutch East India Company was the world's first publicly traded company at the dawn of the 17th century.
As Flow Traders spokesman Gerard Ayodeji told Bloomberg: “If you look at the electronic trading firms in Amsterdam, pretty much all of them are tied in a way to the old options exchange.”
This development is no surprise to professor Albert Menkveld of the Vrije Universiteit Amsterdam. He explained to Bloomberg that companies like these need highly skilled workers who understand data, and who have a feel for the market. “The latter part is something I would say is idiosyncratic” to the Netherlands, he said.
Other financial powerhouses working together with Flow Traders on their IPO include ABN Amro, Morgan Stanley, UBS Group AG, and Credit Suisse Group AG.