Tag: BGC

BGC

BGC FX Revenues Decline in 2016, But Fenics a Bright Spot

BGC Partners has released fourth quarter and full year results for 2016, which show that revenues were down in both its fully electronic FX and financial services businesses compared to the previous year.

BGC posted Q4 2016 FX revenues of $70.8 million, down 5.8% from Q4 2015, and full year revenue of $303.3 million, down 6.6% from 2015.

The notional volume from its fully electronic FX trading unit was also down year-on-year, dropping 21.8% from $13.4 trillion in 2015 to $10.5 trillion last year.

Capitalab Launches Compression for FX Options

Capitalab, an entity within BGC Partners, has launched a multilateral portfolio compression service for FX options, as well as for interest rate caps and floors.

Since June 2016, five FX options compression runs have been executed, in USD/JPY and EUR/USD, with the participation of respectively five and seven FX options dealers.

In the last three interest rate options compression runs organised by Capitalab, participants have also included caps and floors, together with swaptions. Caps and floors – options on Libor and Euribor forward rates – are known to be capital intensive, because of their large notionals.

A New Twist On An Old Investigation? FX Options Brokers Still Under Scrutiny

In November last year Profit & Loss reported on an investigation by New York Attorney General Eric Schneiderman into practices and conduct on the FX options desks of three major inter-dealer brokers. Now, according to a report, that investigation is not only ongoing, but it has broadened beyond the original “spoofing” or “flying” of fake bids and offers, into a look at the what may be the inappropriate sharing of market information and the rigging or influencing of market auctions.