FX Down as BGC FY Revenues Lift

BGC Partners has reported a year-on-year increase in revenues, however in what was a pretty decent set of financial results, FX performance was the only asset class to see a drop with the ‘energy and commodities’ and ‘equities, insurance and other asset classes’ segments driving the growth.

The company, which also announced plans to become a corporation later in 2020, reported revenues of a fraction over $2.1 billion, an 8.6% increase from financial year 2018. Within this, overall FX revenues were $370.3 million, a 6.5% decline from the previous year – a decline the company out down to lower market volumes generally. BGC’s fully electronic business handled $9.282 billion over the year, which over 252 business days works out to just under $37 billion per day, this is am 11% decline in volume from 2018 and was accompanied by a 1.1% drop in FX transaction count. Hybrid volume across all products was $275.9 billion in 2019, a 10.6% decline from 2018.

There was better news for BGC’s Fenics business, which saw revenues increase 4.4% to $204.6 million, overall BGC’s data, software and post-trade businesses earned $73.2 million in 2019, a 12.2% increase.

Inter-company revenues increased by 23.7% to $79.5 million as the enhanced Fenics platform was rolled out to more voice and hybrid desks within the firm. BGC says that 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.

Colin Lambert

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