Flow Traders, the Netherlands-listed operator of a technology-equipped liquidity provision service for the capital markets, launched a €50m ($50.8m) corporate venturing unit this morning to invest in financial and data technologies.
Founded in 2004, Flow Traders utilises advanced technology to quote bid and ask prices across a range of financial products, with exchange-traded products a speciality.
Flow Traders Capital will concentrate on products capable of enhancing digital assets and financial infrastructure, especially in data, platform and connectivity technology. It is expected to seek out emerging technologies, trends and business models that could benefit its parent company in addition to making financial returns.
Although the unit has only been announced today, Flow Traders had already been active in the market having backed companies including decentralised finance technology producer BloXroute Labs and market access provider Elwood Technologies. Another portfolio company, designated contract market ErisX, was bought by Cboe Global Markets in May this year.
The company’s existing portfolio will be managed by Flow Traders Capital alongside its new investments, and all of its companies will get access to Flow Traders’ expertise and resources as well as the partners in its network.
Flow Traders chief executive Dennis Dijkstra said: “Creating Flow Traders Capital is a natural and logical next step for Flow Traders given our core capabilities as well as our leading position within the global financial markets.
“By investing both Flow Traders’ financial capital and intellectual capabilities, it provides us with a unique platform to gain valuable exposure to emerging ecosystems, innovative technologies and to create synergies with our existing business.
“We have already seen a positive financial return on one of our initial investments in ErisX, which is a further proof point of the value Flow Traders brings to ventures that are shaping future financial markets.”
