BGC Partners aims to convert into corporation

Maria Nikolova

The current target is to be positioned to begin executing a conversion around the end of the third quarter of 2020.

International brokerage and fintech company BGC Partners (NASDAQ:BGCP) is planning to become a corporation. The announcement was made by Howard W. Lutnick, Chairman and Chief Executive Officer of BGC, as a part of the financial report for the final quarter and full year 2019.

Mr Lutnick explained:

“Before our first quarter conference call, we expect to submit a proposal to BGC’s Board of Directors and relevant committees with respect to converting our partnership into a corporation. Our current target is to be positioned to begin executing a conversion around the end of the third quarter of 2020, and expect to complete the execution around year end. Any such restructuring would be subject to tax, accounting, regulatory, and other considerations and approvals”.

In terms of results, let’s note that BGC posted GAAP net income of $83.5 million for FY19, up 13.3% from a year earlier. Revenues for 2019 amounted to $2.01 billion, up 8.6% from the preceding year.

“BGC’s revenues improved by 8.6 percent and 4.5 percent for the full year and fourth quarter of 2019 compared with last year,” said Mr Lutnick. “We generated top-line growth despite generally lower industry volumes. I am pleased to announce that our board declared a 14 cent qualified dividend for the fourth quarter. At yesterday’s closing stock price, this translates into a 9.4 percent annualized yield”.

Fenics generated strong year-on-year growth from its rates and data, software, and post-trade businesses during 2019. Inter-company revenues increased as the enhanced Fenics platform was rolled out to more voice/hybrid desks.

Fenics saw total electronic brokerage revenues of $204.6 million in FY19, up 4.4.% from a year earlier, whereas data, software and post-trade revenues were up 12.2% year-on-year at $277.8 million.

Over the last three calendar years, Fenics net revenue growth has meaningfully exceeded BGC’s overall organic top-line improvement, which is a trend the Company expects to continue.

On February 5, 2020, BGC Partners’ Board of Directors declared a quarterly qualified cash dividend of $0.14 per share payable on March 11, 2020 to Class A and Class B common stockholders of record as of February 26, 2020. The ex-dividend date will be February 25, 2020.

Read this next

Retail FX

Pepperstone adds analytics and automated trading tools free of charge

“We look forward to bringing significant value to Pepperstone traders and making a real, positive impact in their daily trading habits. We are excited to welcome them on board.”

Retail FX

FP Markets wins Best Global Value Broker for 4th consecutive year at the 2022 Global Forex Awards

“We greatly appreciate the continued international recognition as at FP Markets we pride ourselves on these attributes and these prestigious awards are testament to the hard work from our global team to always provide our clients with the ultimate trading experience.”

Inside View

How to Engage Your Customer at Every Stage of Their Journey

As many as 89% of successful businesses say that providing assistive customer experiences is critical to their growth. That’s because a mere 5% increase in customer retention can boost profits by 25% to 95%.

Industry News

CFTC fines Chinese firms Chinatex and COFCO $720,000 for wash trading

Chinatex traders engaged in wash trading in order to liquidate a long position in the account of an affiliated company and re-establish the position in its own account, to the ultimate benefit of its parent company, COFCO.

Industry News

US-based operation of Brazilian broker XP fined $500,000 for recordkeeping failures

“Proper recordkeeping is vital to protecting our markets and market participants from fraud and manipulation. This case serves as another example of the Commission’s intent to vigorously enforce the recordkeeping obligations of its registrants.”

Digital Assets

Bitfinex announces integration of USDt on Polkadot

Polkadot is the brainchild of British computer programmer and Ethereum co-founder and former CTO Gavin Wood.

Executive Moves

FPG hires ex-Fireblocks Chris Hazelton to head marketing at crypto prime broker

“Chris’s experience as a marketing leader at several exceptional businesses will help us refine our message to an institutional audience that’s overwhelmed with new information and show tangible examples of how we’ve helped customers like them scale successfully in crypto.”


FinanceFeeds Podcast Ep. #6: Gold-i’s Tom Higgins talks efficiency in FX and inner workings of Crypto Switch

On its sixth episode, the FinanceFeeds Podcast welcomed Tom Higgins, the founder and chief executive of trading systems integration provider, Gold-i.

Digital Assets

Coinigy launches Crypto Screener Tool for spot, DeFi, and derivatives

“Traders can tap into a vast dataset covering the entire crypto ecosystem, which spans nearly a decade, to identify opportunities and act quickly. This is an essential tool for all active and professional traders, including day traders.”