PROPOSED UPDATE TO THE CORPORATE HOLDING STRUCTURE

PROPOSED UPDATE TO THE CORPORATE HOLDING STRUCTURE

Amsterdam, the Netherlands – Flow Traders N.V. (Euronext: FLOW) announces the proposed implementation of an updated corporate holding structure, as an enabler of its global strategic ambition. This proposed update will involve a top holding company in Bermuda and is the result of a thorough legal and capital structure review.

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. Furthermore, it will 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.

As a top holding company domicile, Bermuda has been selected by Flow Traders and by numerous other financial services companies 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 proposed update of the holding structure has received the unanimous support of Flow Traders’…