Summary
- Flow Traders is a registered dealer, providing liquidity by buying and selling all sorts of products, mainly fixed income but also crypto, for a spread.
- They are positively exposed to volatility, especially crypto, which is getting volatile as FTX collapses and Crypto comes under question.
- The downside is in the capital division, where they own quite a bit of crypto as longer-term investments.
- On balance, things look good for Flow Traders, and with FTX collapsing, liquidity provision in crypto should come with better spreads.
For further details see:
Flow Traders May See Crypto Headwind In Their Capital business