On 21 October 2022, Flow Traders announced the proposal to update its holding structure. The update of the holding structure enables Flow Traders to become more competitive as a global, next generation liquidity provider, particularly in relation to regulatory capital management. Different capital requirements will apply following the update of the holding structure, which are expected to expand Flow Traders' strategic growth options. The update of the holding structure will also create a more level playing field with global peers with respect to the regulatory capital framework.
Following the update of the holding structure, Flow Traders will retain its existing global footprint with no change to day-to-day operations. This includes a substantial presence in the Netherlands as well as maintaining a listing on Euronext Amsterdam. The update of the holding structure does not change Flow Traders' tax residence in the Netherlands and Flow Traders continues to apply its policy of pursuing the principle that tax should follow the business. Therefore, Flow Traders will continue to pay taxes in those countries where profits are earned, predominantly in the Netherlands. Flow Traders' regulated entities will continue to be subject to supervision by their respective regulators.
Flow Traders selected Bermuda as its top holding's domicile, as it offers a well-established and respected legal jurisdiction, while offering Flow Traders the ability to execute its growth plans and continue all major elements of its current governance. The update of the holding structure has received the unanimous support of Flow Traders' management and supervisory board members.
After receiving the required shareholder approval and satisfying the regulatory conditions, Flow Traders successfully completed the update of its holding structure on 13 January 2023. As a result of the update of the corporate holding structure, Flow Traders’ top holding company is now Flow Traders Ltd.