SEC Form 10-Q filed by BGC Partners Inc

11/9/23 4:01:17 PM ET

Investment Bankers/Brokers/Service

Finance

Get the next $BGCP alert in real time by email

bgcp-20230930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________

FORM 10-Q

_________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Numbers: 001-35591

_________________________________________________

BGC Group, Inc.

(Exact name of registrant as specified in its charter)

_________________________________________________


Delaware			86-3748217
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
499 Park Avenue, New York, NY			10022
(Address of principal executive offices)			(Zip Code)

(212) 610-2200

(Registrant’s telephone number, including area code)

___________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

Class A Common Stock, $0.01 par value

BGC

The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller Reporting Company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

On November 7, 2023, the registrant had 386,790,893 shares of Class A common stock, $0.01 par value, and 109,452,953 shares of Class B common stock, $0.01 par value, outstanding.


		Page
PART I—FINANCIAL INFORMATION
	Glossary of Terms, Abbreviations and Acronyms	2
ITEM 1	Financial Statements (unaudited)	16
	Condensed Consolidated Statements of Financial Condition—At September 30, 2023 and December 31, 2022	16
	Condensed Consolidated Statements of Operations—For the Three and Nine Months Ended September 30, 2023 and September 30, 2022	17
	Condensed Consolidated Statements of Comprehensive Income (Loss)—For the Three and Nine Months Ended September 30, 2023 and September 30, 2022	18
	Condensed Consolidated Statements of Cash Flows—For the Nine Months Ended September 30, 2023 and September 30, 2022	19
	Condensed Consolidated Statements of Changes in Equity—For the Three and Nine Months Ended September 30, 2023 and September 30, 2022	21

	Notes to Condensed Consolidated Financial Statements	24
ITEM 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	73
ITEM 3	Quantitative and Qualitative Disclosures About Market Risk	117
ITEM 4	Controls and Procedures	119
PART II—OTHER INFORMATION
ITEM 1	Legal Proceedings	120
ITEM 1A	Risk Factors	120
ITEM 2	Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases o f Equity Securities	120
ITEM 3	Defaults Upon Senior Securities	120
ITEM 4	Mine Safety Disclosures	120
ITEM 5	Other Information	120
ITEM 6	Exhibits	121
Signatures		123


TERM			DEFINITION

2019 S-4 Registration Statement			On September 13, 2019, BGC filed a registration statement on Form S-4 with respect to the offer and sale of up to 20.0 million shares of BGC Class A common stock in connection with business combination transactions, including acquisition of other businesses, assets, properties or securities

2023 Deed of Amendment			On July 12, 2023, Mr. Windeatt executed a Deed of Amendment amending his existing Deed of Adherence with the U.K. Partnership regarding his employment

Adjusted Earnings			A non-GAAP financial measure used by the Company to evaluate financial performance, which primarily excludes (i) certain non-cash items and other expenses that generally do not involve the receipt or outlay of cash and do not dilute existing stockholders, and (ii) certain gains and charges that management believes do not best reflect the ordinary results of BGC

ADV			Average daily volume

Algomi			Algomi Limited, a wholly owned subsidiary of the Company, acquired on March 6, 2020

API			Application Programming Interface

April 2008 distribution rights shares			Cantor’s deferred stock distribution rights provided to current and former Cantor partners on April 1, 2008

Aqua			Aqua Securities L.P., an alternative electronic trading platform, which offers new pools of block liquidity to the global equities markets and is a 49%-owned equity method investment of the Company and 51% owned by Cantor

ASC			Accounting Standards Codification

ASU			Accounting Standards Update

Audit Committee			Audit Committee of the Board

August 2022 Sales Agreement			CEO Program sales agreement, by and between the Company and CF&Co, dated August 12, 2022, pursuant to which the Company can offer and sell up to an aggregate of $300.0 million of shares of BGC Class A common stock

Besso			Besso Insurance Group Limited, formerly a wholly owned subsidiary of the Company, acquired on February 28, 2017. Sold to The Ardonagh Group on November 1, 2021 as part of the Insurance Business Disposition

BGC			(i) Following the closing of the Corporate Conversion, BGC Group and, where applicable, its consolidated subsidiaries, including BGC Partners, and (ii) prior to the closing of the Corporate Conversion, BGC Partners and, where applicable, its consolidated subsidiaries

BGC or our Class A common stock			BGC Class A common stock, par value $0.01 per share

BGC or our Class B common stock			BGC Class B common stock, par value $0.01 per share

BGC Credit Agreement			Agreement between BGC Partners and Cantor, dated March 19, 2018, and assumed by BGC Group on October 6, 2023, that provides for each party or its subsidiaries to borrow up to $250.0 million, as amended on August 6, 2018 to increase the facility to $400.0 million

BGC Entity Group			BGC Partners, BGC Holdings, BGC U.S. OpCo and their respective subsidiaries (other than, prior to the Spin-Off, the Newmark Group), collectively, and in each case as such entities existed prior to the Corporate Conversion

BGC Global OpCo			BGC Global Holdings, L.P., an operating partnership, which holds the non-U.S. businesses of BGC and which is indirectly wholly owned, following the closing of the Corporate Conversion, by BGC Group

BGC Group			BGC Group, Inc., and where applicable its consolidated subsidiaries


TERM			DEFINITION
BGC Group 3.750% Senior Notes			$255.5 million principal amount of 3.750% senior notes maturing on October 1, 2024 and issued on October 6, 2023

BGC Group 4.375% Senior Notes			$288.2 million principal amount of 4.375% senior notes maturing on December 15, 2025 and issued on October 6, 2023

BGC Group 8.000% Senior Notes			$347.2 million principal amount of 8.000% senior notes maturing on May 25, 2028 and issued on October 6, 2023

BGC Group Equity Plan			Eighth Amended and Restated BGC Partners Long Term Incentive Plan, as amended and restated and renamed the “BGC Group, Inc. Long Term Incentive Plan” and assumed by BGC Group in connection with the Corporate Conversion

BGC Group Incentive Plan			Second Amended and Restated BGC Partners Incentive Bonus Compensation Plan, as amended and restated and renamed the “BGC Group, Inc. Incentive Bonus Compensation Plan” and assumed by BGC Group in connection with the Corporate Conversion

BGC Holdings			BGC Holdings, L.P., an entity which, prior to the Corporate Conversion, was owned by Cantor, Founding Partners, BGC employee partners and, after the Separation, Newmark employee partners

BGC Holdings Distribution			Pro-rata distribution, pursuant to the Separation and Distribution Agreement, by BGC Holdings to its partners of all of the exchangeable limited partnership interests of Newmark Holdings owned by BGC Holdings immediately prior to the distribution, completed on the Distribution Date

BGC OpCos			BGC U.S. OpCo and BGC Global OpCo, collectively

BGC Partners			BGC Partners, Inc. and, where applicable, its consolidated subsidiaries

BGC Partners 3.750% Senior Notes			$300.0 million principal amount of 3.750% senior notes maturing on October 1, 2024 and issued on September 27, 2019. Following the Exchange Offer on October 6, 2023 $44.5 million aggregate principal amount of the BGC Partners 3.750% Senior Notes remain outstanding

BGC Partners 4.375% Senior Notes			$300.0 million principal amount of 4.375% senior notes maturing on December 15, 2025 and issued on July 10, 2020. Following the Exchange Offer on October 6, 2023 $11.8 million aggregate principal amount of the BGC Partners 4.375% Senior Notes remain outstanding

BGC Partners 5.375% Senior Notes			$450.0 million principal amount of 5.375% senior notes which matured on July 24, 2023 and were issued on July 24, 2018

BGC Partners 8.000% Senior Notes			$350.0 million principal amount of 8.000% senior notes maturing on May 25, 2028 and issued on May 25, 2023. Following the Exchange Offer on October 6, 2023 $2.8 million aggregate principal amount of the BGC Partners 8.000% Senior Notes remain outstanding

BGC Partners Equity Plan			Eighth Amended and Restated Long Term Incentive Plan, approved by BGC Partners’ stockholders at the annual meeting of stockholders on November 22, 2021

BGC Partners Incentive Plan			BGC Partners’ Second Amended and Restated Incentive Bonus Compensation Plan, approved by BGC Partners’ stockholders at the annual meeting of stockholders on June 6, 2017

BGC Partners Notes			BGC Partners 3.750% Senior Notes, BGC Partners 4.375% Senior Notes, BGC Partners 5.375% Senior Notes and BGC Partners 8.000% Senior Notes issued by BGC Partners

BGC U.S. OpCo			BGC Partners, L.P., an operating partnership, which holds the U.S. businesses of BGC and which is indirectly wholly owned, following the closing of the Corporate Conversion, by BGC Group

Board			Board of Directors of the Company

Brexit			Exit of the U.K. from the EU

Cantor			Cantor Fitzgerald, L.P. and, where applicable, its consolidated subsidiaries

Cantor group			Cantor and its subsidiaries other than BGC, including Newmark

Cantor units			Limited partnership interests, prior to the Corporate Conversion, of BGC Holdings, held by the Cantor group, which BGC Holdings units were exchangeable into shares of BGC Class A common stock or BGC Class B common stock, as applicable


TERM			DEFINITION
CCRE			Cantor Commercial Real Estate Company, L.P.

CECL			Current Expected Credit Losses

CEO Program			Controlled equity offering program

CF&Co			Cantor Fitzgerald & Co., a wholly owned broker-dealer subsidiary of Cantor

CFGM			CF Group Management, Inc., the general partner of Cantor

CFTC			Commodity Futures Trading Commission

Charity Day			BGC’s annual event held on September 11th where employees of the Company raise proceeds for charity

Class B Issuance			Issuance by BGC Partners of 10,323,366 and 712,907 shares of BGC Class B common stock to Cantor and CFGM, respectively, in exchange for an aggregate of 11,036,273 shares of BGC Class A common stock under the Exchange Agreement, completed on November 23, 2018

CLOB			Central Limit Order Book

CME			CME Group Inc., is a leading derivatives marketplace, made up of four exchanges: CME, CBOT, NYMEX and COMEX

Company			Refers to (i) from after the effective time of the Corporate Conversion, BGC Group and its consolidated subsidiaries, including BGC Partners; and (ii) prior to the effective time of the Corporate Conversion, BGC Partners and its consolidated subsidiaries

Company Debt Securities			The BGC Group 5.375% Senior Notes, BGC Group 3.750% Senior Notes, BGC Group 4.375% Senior Notes, BGC Group 8.000% Senior Notes, the BGC Partners Notes and any future debt securities issued by the Company or its subsidiaries

Company Equity Securities			BGC Group stock or other equity securities

Compensation Committee			Compensation Committee of the Board

Contribution Ratio			Equal to a BGC Holdings limited partnership interest multiplied by one, divided by 2.2 (or 0.4545)

Corporate Conversion			A series of mergers and related transactions pursuant to which, effective at 12:02 AM Eastern Time on July 1, 2023, BGC Partners and BGC Holdings became wholly owned subsidiaries of BGC Group, transforming the organizational structure of the BGC businesses from an “Up-C” structure to a simplified “Full C-Corporation” structure

Corporate Conversion Agreement			The Corporate Conversion Agreement entered into on November 15, 2022, and as amended on March 29, 2023, by and among BGC Partners, BGC Holdings, BGC Group, Inc. and other affiliated entities, and, solely for the purposes of certain provisions therein, Cantor, that provides for the Corporate Conversion of the BGC businesses

Corporate Conversion Transactions			The Corporation Conversion Transactions refers to the series of mergers described in the Corporate Conversion Agreement and related transactions

Corporate Conversion Mergers			The Holdings Reorganization Merger, the Corporate Merger, and the Holdings Merger, collectively

Corporate Merger			The merger of Merger Sub 1 with and into BGC Partners on July 1, 2023

COVID-19			Coronavirus Disease 2019

CRD			Capital Requirements Directive

Credit Facility			A $150.0 million credit facility between BGC Group and an affiliate of Cantor entered into on April 21, 2017, which was terminated on March 19, 2018

DCM			Designated Contract Market


TERM			DEFINITION
DCO			Derivatives Clearing Organization

Deed			Mr. Windeatt’s Deed of Adherence, as amended, with the U.K. Partnership regarding the terms of employment

Distribution Date			November 30, 2018, the date that BGC Partners and BGC Holdings completed the Spin-Off and the BGC Holdings Distribution, respectively

Dodd-Frank Act			Dodd-Frank Wall Street Reform and Consumer Protection Act

DRIP			Dividend Reinvestment and Stock Purchase Plan

DRIP Registration Statement			Registration statement on Form S-3 with respect to the offer and sale of up to 10.0 million shares of BGC Class A common stock under the DRIP

ECB			European Central Bank

EMIR			European Market Infrastructure Regulation

EPS			Earnings Per Share

ESG			Environmental, social and governance, including sustainability or similar items

eSpeed			Various assets comprising the Fully Electronic portion of the Company’s former benchmark on-the-run U.S. Treasury brokerage, market data and co-location service businesses, sold to Nasdaq on June 28, 2013

ETR			Effective Tax Rate

EU			European Union

Exchange Act			Securities Exchange Act of 1934, as amended

Exchange Agreement			A letter agreement by and between BGC Partners, Cantor and CFGM, dated June 5, 2015, that, prior to the Corporate Conversion, granted Cantor and CFGM the right to exchange shares of BGC Class A common stock into shares of BGC Class B common stock on a one-to-one basis up to the limits described therein, and which agreement was terminated in connection with the Corporate Conversion

Exchange Offer			Consent solicitations and offers to exchange the BGC Partners 3.750% Senior Notes, BGC Partners 4.375% Senior Notes and BGC Partners 8.000% Senior Notes issued by BGC Partners for the BGC Group 3.750% Senior Notes, BGC Group 4.375% Senior Notes and BGC Group 8.000% Senior Notes issued by BGC Group, in each case with substantially similar terms to the corresponding series of BGC Partners Notes

Exchange Ratio			Ratio by which a Newmark Holdings limited partnership interest can be exchanged for shares of Newmark Class A or Class B common stock


FASB			Financial Accounting Standards Board

FCA			Financial Conduct Authority of the U.K.

FCM			Futures Commission Merchant

FDIC			Federal Deposit Insurance Corporation

February 2012 distribution rights shares			Cantor’s deferred stock distribution rights provided to current and former Cantor partners on February 14, 2012

Fenics			BGC’s group of electronic brands, offering a number of market infrastructure and connectivity services, Fully Electronic marketplaces, and the Fully Electronic brokerage of certain products that also may trade via Voice and Hybrid execution, including market data and related information services, Fully Electronic brokerage, connectivity software, compression and other post-trade services, analytics related to financial instruments and markets, and other financial technology solutions; includes Fenics Growth Platforms and Fenics Markets


TERM			DEFINITION
Fenics Growth Platforms			Consists of Fenics UST, Fenics GO, Lucera, Fenics FX and other newer standalone platforms

Fenics Integrated			Represents Fenics businesses that utilize sufficient levels of technology such that significant amounts of their transactions can be, or are, executed without broker intervention and have expected pre-tax margins of at least 25%

Fenics Markets			Consists of the Fully Electronic portions of BGC’s brokerage businesses, data, network and post-trade revenues that are unrelated to Fenics Growth Platforms, as well as Fenics Integrated revenues

FINRA			Financial Industry Regulatory Authority

FMX			BGC’s combined U.S. Treasury and Futures electronic marketplace

Founding Partners			Individuals who became limited partners of BGC Holdings in the mandatory redemption of interests in Cantor in connection with the 2008 separation and merger of Cantor’s BGC division with eSpeed, Inc. (provided that members of the Cantor group and Howard W. Lutnick (including any entity directly or indirectly controlled by Mr. Lutnick or any trust with respect to which he is a grantor, trustee or beneficiary) are not founding partners) and became limited partners of Newmark Holdings in the Separation

Founding/Working Partners			Holders of FPUs

FPUs			Founding/Working Partners units, in BGC Holdings, prior to the Corporate Conversion, or Newmark Holdings, generally redeemed upon termination of employment

Freedom			Freedom International Brokerage Company, a 45%-owned equity method investment of the Company

Fully Electronic			Broking transactions intermediated on a solely electronic basis rather than by Voice or Hybrid broking

Futures Exchange Group			A wholly owned subsidiary made up of the following entities: CFLP CX Futures Exchange Holdings, LLC, CFLP CX Futures Exchange Holdings, L.P., CX Futures Exchange Holdings, LLC, CX Clearinghouse Holdings, LLC, FMX Futures Exchange, L.P. and CX Clearinghouse, L.P.

FX			Foreign exchange

GDPR			General Data Protection Regulation

GFI			GFI Group Inc., a wholly owned subsidiary of the Company, acquired on January 12, 2016

GILTI			Global Intangible Low-Taxed Income

GUI			Graphical User Interface

HDUs			LPUs with capital accounts, which are liability awards recorded in “Accrued compensation” in the Company’s Consolidated Statements of Financial Condition

Holdings Merger			The merger of Merger Sub 2 with and into Holdings Merger Sub

Holdings Reorganization Merger			The reorganization of BGC Holdings from a Delaware limited partnership into a Delaware limited liability company through a merger with and into Holdings Merger Sub

Holdings Merger Sub			BGC Holdings Merger Sub, LLC, a Delaware limited liability company, wholly owned subsidiary of the Company, and successor to BGC Holdings

Hybrid			Broking transactions executed by brokers and involving some element of Voice broking and electronic trading

ICAP			ICAP plc, a part of TP ICAP group, and a leading markets operator and provider of execution and information services

ICE			Intercontinental Exchange


TERM			DEFINITION
Insurance brokerage business			The insurance brokerage business of BGC, including Corant, Ed Broking, Besso, Piiq Risk Partners, Junge, Cooper Gay, Global Underwriting and Epsilon, which business was sold to The Ardonagh Group on November 1, 2021

Insurance Business Disposition			The sale of the Insurance brokerage business for $534.9 million in gross cash proceeds after closing adjustments, subject to limited post-closing adjustments, completed on November 1, 2021

IR Act			Inflation Reduction Act of 2022

July 2023 distribution shares			On July 2, 2023 Cantor distributed an aggregate of 15.8 million shares of BGC Class B common stock in satisfaction of its remaining deferred share distribution obligations pursuant to the April 2008 distribution rights shares and the February 2012 distribution rights shares.

July 2023 Sales Agreement			CEO Program sales agreement, by and between the Company and CF&Co, dated July 3, 2023, pursuant to which the Company can offer and sell up to an aggregate of $300.0 million of shares of BGC Class A common stock

LCH			London Clearing House

Legacy BGC Holdings Units			BGC Holdings LPUs outstanding immediately prior to the Separation

Legacy Newmark Holdings Units			Newmark Holdings LPUs issued in connection with the Separation

LIBOR			London Interbank Offering Rate

LPA Amendment			On March 10, 2023, BGC Holdings entered into the Second Amendment to the Second Amended and Restated BGC Holdings Limited Partnership Agreement which revised certain restrictive covenants pertaining to the “Partner Obligations” and “Competitive Activity”

LPUs			Certain limited partnership units, of BGC Holdings prior to the Corporate Conversion, or Newmark Holdings, held by certain employees of BGC and Newmark and other persons who have provided services to BGC or Newmark, which units may include APSIs, APSUs, AREUs, ARPSUs, HDUs, U.K. LPUs, N Units, PLPUs, PPSIs, PPSUs, PSEs, PSIs, PSUs, REUs, and RPUs, along with future types of limited partnership units in Newmark Holdings

Lucera			A wholly owned subsidiary of the Company, also known as “LFI Holdings, LLC” or “LFI,” which is a software defined network offering the trading community direct connectivity

March 2018 Form S-3			CEO Program shelf Registration Statement on Form S-3 filed on March 9, 2018

March 2018 Sales Agreement			CEO Program sales agreement, by and between BGC Partners and CF&Co, dated March 9, 2018, pursuant to which BGC Partners could offer and sell up to an aggregate of $300.0 million of shares of BGC Class A common stock, which agreement expired in September 2021

March 2021 Form S-3			CEO Program shelf Registration Statement on Form S-3 filed on March 8, 2021

Merger Sub 1			BGC Partners II, Inc., a Delaware corporation and wholly owned subsidiary of BGC Group

Merger Sub 2			BGC Partners II, LLC, a Delaware limited liability company and wholly owned subsidiary of BGC Group

MiFID II			Markets in Financial Instruments Directive II, a legislative framework instituted by the EU to regulate financial markets and improve protections for investors by increasing transparency and standardizing regulatory disclosures

Mint Brokers			A wholly owned subsidiary of the Company, acquired on August 19, 2010, registered as an FCM with both the CFTC and the NFA

Nasdaq			Nasdaq, Inc., formerly known as NASDAQ OMX Group, Inc.

NDF			Non-deliverable forwards

Newmark			Newmark Group, Inc. (Nasdaq symbol: NMRK), a publicly traded and former majority-owned subsidiary of BGC until the Distribution Date, and, where applicable, its consolidated subsidiaries


TERM			DEFINITION
Newmark Class A common stock			Newmark Class A common stock, par value $0.01 per share

Newmark Class B common stock			Newmark Class B common stock, par value $0.01 per share

Newmark Group			Newmark, Newmark Holdings, and Newmark OpCo and their respective consolidated subsidiaries, collectively

Newmark Holdings			Newmark Holdings, L.P.

Newmark IPO			Initial public offering of 23 million shares of Newmark Class A common stock by Newmark at a price of $14.00 per share in December 2017


Newmark OpCo			Newmark Partners, L.P., an operating partnership, which is owned jointly by Newmark and Newmark Holdings and holds the business of Newmark

NEX			NEX Group plc, an entity formed in December 2016, formerly known as ICAP and acquired by CME Group in November 2018

NFA			National Futures Association

Non-GAAP			A financial measure that differs from the most directly comparable measure calculated and presented in accordance with U.S. GAAP, such as Adjusted Earnings and Adjusted EBITDA

N Units			Non-distributing partnership units, of BGC Holdings, prior to the Corporate Conversion, or Newmark Holdings, that may not be allocated any item of profit or loss, and may not be made exchangeable into shares of Class A common stock, including NREUs, NPREUs, NLPUs, NPLPUs, NPSUs, and NPPSUs

OCI			Other comprehensive income (loss), including gains and losses on cash flow and net investment hedges, unrealized gains and losses on available for sale securities (in periods prior to January 1, 2018), certain gains and losses relating to pension and other retirement benefit obligations and foreign currency translation adjustments

OTC			Over-the-Counter

OTF			Organized Trading Facility, a regulated execution venue category introduced by MiFID II

PCD assets			Purchased financial assets with deterioration in credit quality since origination

Period Cost Method			Treatment of taxes associated with the GILTI provision as a current period expense when incurred rather than recording deferred taxes for basis differences

Poten & Partners			Poten & Partners Group, Inc., a wholly owned subsidiary of the Company, acquired on November 15, 2018

Preferred Distribution			Allocation of net profits of BGC Holdings (prior to the Corporate Conversion) or Newmark Holdings to holders of Preferred Units, at a rate of either 0.6875% (i.e., 2.75% per calendar year) or such other amount as set forth in the award documentation

Preferred Return			The lesser of the two-year treasury bond rate or 2.75% annually, as calculated on the determination amount applicable to certain RSU Tax Account awards, which may be adjusted or otherwise determined by management from time to time

Preferred Units			Preferred partnership units, of BGC Holdings prior to the Corporate Conversion, or Newmark Holdings, such as PPSUs, which are settled for cash, rather than made exchangeable into shares of Class A common stock, are only entitled to a Preferred Distribution, and are not included in BGC’s or Newmark’s fully diluted share count

Real Estate L.P.			CF Real Estate Finance Holdings, L.P., a commercial real estate-related financial and investment business controlled and managed by Cantor

Record Date			Close of business on November 23, 2018, in connection with the Spin-Off

Repurchase Agreements			Securities sold under agreements to repurchase that are recorded at contractual amounts, including interest, and accounted for as collateralized financing transactions


TERM			DEFINITION
Reverse Repurchase Agreements			Agreements to resell securities, with such securities recorded at the contractual amount, including accrued interest, for which the securities will be resold, and accounted for as collateralized financing transactions

Revolving Credit Agreement			BGC Group’s unsecured senior revolving credit agreement with Bank of America, N.A., as administrative agent, and a syndicate of lenders, dated as of November 28, 2018, that originally provided for a maximum revolving loan balance of $350.0 million, bearing interest at either LIBOR or a defined base rate plus additional margin, amended on December 11, 2019 to extend the maturity date to February 26, 2021 and further amended on February 26, 2020 to extend the maturity date to February 26, 2023. On March 10, 2022, the agreement was amended and restated to increase the size of the credit facility to $375.0 million, bearing interest at either SOFR or a defined base rate plus additional margin, and extend the maturity date to March 10, 2025. On October 6, 2023, the Revolving Credit Agreement was amended to exclude the BGC Partners Notes from the restrictive covenant in the Revolving Credit Agreement limiting the indebtedness of subsidiaries, and BGC Group assumed all rights and obligations of BGC Partners under the Revolving Credit Agreement and became the borrower thereunder

ROU			Right-of-Use

RSUs			BGC or Newmark restricted stock units, payable in shares of BGC Class A common stock or Newmark Class A common stock, respectively, held by certain employees of BGC or Newmark and other persons who have provided services to BGC or Newmark, or issued in connection with certain acquisitions

RSU Tax Account			RSU Tax Accounts were issued by BGC in connection with the Corporate Conversion in the place of certain non-exchangeable Preferred Units. The RSU Tax Accounts are settled for cash, rather than vesting into shares of Class A common stock, may be entitled to a Preferred Return, and are not included in BGC’s fully diluted share count. The RSU Tax Accounts were issued in connection with RSUs and are to cover any withholding taxes to be paid when the RSUs vest into shares of BGC Class A common stock

Russia’s Invasion of Ukraine			Russia’s invasion of Ukraine, which led to imposed sanctions by the U.S., U.K., EU, and other countries on Russian counterparties

SaaS			Software as a Service

SBSEF			Security-based Swap Execution Facility

SEC			U.S. Securities and Exchange Commission

Securities Act			Securities Act of 1933, as amended

SEF			Swap Execution Facility

Separation			Principal corporate transactions pursuant to the Separation and Distribution Agreement, by which BGC Partners, BGC Holdings and BGC U.S. OpCo and their respective subsidiaries (other than the Newmark Group) transferred to Newmark, Newmark Holdings and Newmark OpCo and their respective subsidiaries the assets and liabilities of the BGC Entity Group relating to BGC’s real estate services business, and related transactions, including the distribution of Newmark Holdings units to holders of units in BGC Holdings and the assumption and repayment of certain BGC indebtedness by Newmark

Separation and Distribution Agreement			Separation and Distribution Agreement, by and among the BGC Entity Group, the Newmark Group, Cantor and BGC Global OpCo, originally entered into on December 13, 2017, as amended on November 8, 2018 and amended and restated on November 23, 2018

SOFR			Secured Overnight Financing Rate

SPAC			Special Purpose Acquisition Company

SPAC Investment Banking Activities			Aurel’s investment banking activities with respect to SPACs

Spin-Off			Pro-rata distribution, pursuant to the Separation and Distribution Agreement, by BGC Partners to its stockholders of all the shares of common stock of Newmark owned by BGC Partners immediately prior to the Distribution Date, with shares of Newmark Class A common stock distributed to the holders of shares of BGC Class A common stock (including directors and executive officers of BGC Partners) of record on the Record Date, and shares of Newmark Class B common stock distributed to the holders of shares of BGC Class B common stock (Cantor and CFGM) of record on the Record Date, completed on the Distribution Date


TERM			DEFINITION
Tax Act			Tax Cuts and Jobs Act enacted on December 22, 2017

TDRs			Troubled Debt Restructurings

The Ardonagh Group			The Ardonagh Group Limited, the U.K.’s largest independent insurance broker and purchaser of BGC’s Insurance brokerage business completed on November 1, 2021

Tower Bridge			Tower Bridge International Services L.P., a subsidiary of the Company, which is 52%-owned by the Company and 48%-owned by Cantor

TP ICAP			TP ICAP plc, an entity formed in December 2016, formerly known as Tullett

Tradition			Compagnie Financière Tradition SA, a Swiss based inter-dealer broker

Trident			Trident Brokerage Service LLC, a wholly owned subsidiary of the Company, acquired on February 28, 2023

Tullett			Tullett Prebon plc, a part of TP ICAP group and an interdealer broker, primarily operating as an intermediary in the wholesale financial and energy sectors

U.K.			United Kingdom

U.K. Partnership			BGC Services (Holdings) LLP, a wholly owned subsidiary

U.S. GAAP or GAAP			Generally Accepted Accounting Principles in the United States of America

UBT			Unincorporated Business Tax

VIE			Variable Interest Entity

Voice			Voice-only broking transactions executed by brokers over the telephone


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues:
Commissions	$	350,305	$	299,430	$	1,076,313	$	965,636
Principal transactions	84,725		79,568		294,537		283,338
Fees from related parties	3,723		3,896		11,742		10,838
Data, network and post-trade	27,797		23,808		81,919		71,326
Interest and dividend income	10,150		4,110		28,836		15,506
Other revenues	5,994		5,755		15,294		12,143
Total revenues	482,694		416,567		1,508,641		1,358,787
Expenses:
Compensation and employee benefits	233,087		202,353		743,688		671,494
Equity-based compensation and allocations of net income to limited partnership units and FPUs	69,268		57,730		277,285		161,739
Total compensation and employee benefits	302,355		260,083		1,020,973		833,233
Occupancy and equipment	40,028		38,710		121,681		117,294
Fees to related parties	7,046		6,551		23,477		18,285
Professional and consulting fees	13,734		15,048		44,254		44,489
Communications	29,222		26,802		84,974		81,859
Selling and promotion	14,939		11,373		44,875		34,754
Commissions and floor brokerage	14,755		13,104		46,181		44,686
Interest expense	20,780		14,499		56,436		43,144
Other expenses	22,030		19,951		47,759		60,736
Total expenses	464,889		406,121		1,490,610		1,278,480
Other income (losses), net:
Gains (losses) on divestitures and sale of investments	—		(183)		—		(183)
Gains (losses) on equity method investments	2,094		3,230		6,568		8,762
Other income (loss)	3,967		5,545		1,221		6,958
Total other income (losses), net	6,061		8,592		7,789		15,537
Income (loss) from operations before income taxes	23,866		19,038		25,820		95,844
Provision (benefit) for income taxes	5,314		10,813		8,308		40,575
Consolidated net income (loss)	$	18,552	$	8,225	$	17,512	$	55,269
Less: Net income (loss) attributable to noncontrolling interest in subsidiaries	1,506		2,463		1,192		8,773
Net income (loss) available to common stockholders	$	17,046	$	5,762	$	16,320	$	46,496
Per share data (Note 6):
Basic earnings (loss) per share
Net income (loss) attributable to common stockholders	$	15,974	$	5,762	$	15,248	$	46,496
Basic earnings (loss) per share	$	0.03	$	0.02	$	0.04	$	0.13
Basic weighted-average shares of common stock outstanding	468,544		371,108		412,178		371,692
Fully diluted earnings (loss) per share


	Nine Months Ended September 30,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income (loss)	$	17,512	$	55,269
Adjustments to reconcile consolidated net income (loss) to net cash provided by (used in) operating activities:
Fixed asset depreciation and intangible asset amortization	60,117		55,786
Employee loan amortization and reserves on employee loans	35,645		35,083
Equity-based compensation and allocations of net income to limited partnership units and FPUs	277,285		161,739
Deferred compensation expense	38		75
Losses (gains) on equity method investments	(6,568)		(8,762)
Unrealized/realized losses (gains) on financial instruments owned, at fair value and other investments	914		1,434
Amortization of discount (premium) on notes payable	2,708		2,099
Impairment of fixed assets, intangible assets and investments	3,013		5,568
Deferred tax provision (benefit)	(22,678)		2,025
Change in estimated acquisition earn-out payables	723		(516)
Forfeitures of Class A common stock	(796)		(188)

Other	—		(1,914)
Consolidated net income (loss), adjusted for non-cash and non-operating items	367,913		307,698
Decrease (increase) in operating assets:

Financial instruments owned, at fair value	(5,562)		2,976
Receivables from broker-dealers, clearing organizations, customers and related broker-dealers	(614,776)		(1,416,538)
Accrued commissions receivable, net	(26,848)		(4,081)
Loans, forgivable loans and other receivables from employees and partners, net	(47,525)		(51,719)
Receivables from related parties	(4,570)		(1,522)
Other assets	6,348		(10,829)
Increase (decrease) in operating liabilities:
Repurchase agreements	—		1,013

Accrued compensation	(6,902)		(23,341)
Payables to broker-dealers, clearing organizations, customers and related broker-dealers	597,329		1,355,361
Payables to related parties	9,243		24,689
Accounts payable, accrued and other liabilities	(42,949)		(51,770)
Net cash provided by (used in) operating activities	$	231,701	$	131,937


	BGC Group, Inc. Stockholders												Noncontrolling Interest in Subsidiaries		Total
	Class A Common Stock		Class B Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Deficit		Accumulated Other Comprehensive Income (Loss)
Balance, July 1, 2023	$	5,086	$	459	$	2,667,812	$	(753,331)	$	(1,146,350)	$	(41,128)	$	86,599	$	819,147
Consolidated net income (loss)	—		—		—		—		17,046		—		1,506		18,552
Other comprehensive income (loss), net of tax	—		—				—		—		(4,691)		(163)		(4,854)
Equity-based compensation, 6,490,733 shares	55				60,191		10		—		—		—		60,256
Dividends to common stockholders and participating RSU holders	—		—		—		—		(4,900)		—		—		(4,900)
Issuance of Class A common stock (net of costs), 55,348 shares	—		—		170		—		—		—		—		170

Repurchase of Class A common stock, 8,086,750 shares	—		—		—		(40,345)		—		—		—		(40,345)

Contributions of capital to and from Cantor for equity-based compensation	—		—		1,931		—		—		—		—		1,931
Issuance of Class A common stock and RSUs for acquisitions, 413,884 shares	4		—		4,510		—		—		—		—		4,514


Cantor units converted into shares of BGC Group Class B common stock due to the Corporate Conversion, 63,974,374 shares	—		640		75,788		—		—		—		(76,428)		—
Restricted stock awards granted upon conversion of limited partnership interests due to the Corporate Conversion, 38,610,233 shares	386		—		(386)		—		—		—		—		—
Conversion of Class B Common Stock to Class A Common Stock, 405,801 shares	4		(4)		—		—		—		—		—		—
Cancellation of BGC Partners Inc. Treasury Stock due to Corporate Conversion, 156,386,616 shares	(1,563)		—		(751,768)		753,331		—		—		—		—
Other	—		—		1,188		—		—		—		—		1,188
Balance, September 30, 2023	$	3,972	$	1,095	$	2,059,436	$	(40,335)	$	(1,134,204)	$	(45,819)	$	11,514	$	855,659


	BGC Group, Inc. Stockholders												Noncontrolling Interest in Subsidiaries		Total
	Class A Common Stock		Class B Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Deficit		Accumulated Other Comprehensive Income (Loss)
Balance, January 1, 2023	$	4,719	$	459	$	2,559,418	$	(711,454)	$	(1,138,066)	$	(45,431)	$	63,563	$	733,208
Consolidated net income (loss)	—		—		—		—		16,320		—		1,192		17,512
Other comprehensive income (loss), net of tax	—		—		—		—		—		(388)		517		129
Equity-based compensation, 9,120,746 shares	78				65,932		13		—		—		1,766		67,789
Dividends to common stockholders and participating RSU holders	—		—		—		—		(12,458)		—		—		(12,458)
Earnings distributions to limited partnership interests and other noncontrolling interests	—		—		—		—		—		—		(12,294)		(12,294)
Grant of exchangeability and redemption of limited partnership interests, issuance of 29,118,664 shares	291		—		86,505		—		—		—		26,405		113,201
Issuance of Class A common stock (net of costs), 234,931 shares	2		—		511		—		—		—		14		527
Redemption of FPUs, 156,049 units	—		—				—		—		—		(547)		(547)
Repurchase of Class A common stock, 18,746,467 shares	—		—				(81,456)		—		—		(6,691)		(88,147)
Forfeiture of Class A common stock, 238,927 shares	—		—		84		(769)		—		—		(111)		(796)
Contributions of capital to and from Cantor for equity-based compensation	—		—		2,321		—		—		—		116		2,437
Grant of exchangeability, redemption of limited partnership interests and issuance of Class A common stock and RSUs for acquisitions, 5,504,698 shares	55		—		6,843		—		—		—		377		7,275
Cantor's purchase of Cantor units from BGC Holdings upon redemption of FPUs, 6,368,964 units	—		—		—		—		—		—		11,539		11,539
Redemption of FPUs and issuance of RSUs due to the Corporate Conversion	—		—		12,410		—		—		—		2,096		14,506
Cantor units converted into shares of BGC Group Class B common stock due to the Corporate Conversion, 63,974,374 shares	—		640		75,788		—		—		—		(76,428)		—
Restricted stock awards granted upon conversion of limited partnership interests due to the Corporate Conversion, 38,610,233 shares	386		—		(386)		—		—		—		—		—
Conversion of Class B Common Stock to Class A Common Stock, 405,801 shares	4		(4)		—		—		—		—		—		—
Cancellation of BGC Partners Inc. Treasury Stock due to Corporate Conversion, 156,386,616 shares	(1,563)		—		(751,768)		753,331		—		—		—		—
Other	—		—		1,778		—		—		—		—		1,778
Balance, September 30, 2023	$	3,972	$	1,095	$	2,059,436	$	(40,335)	$	(1,134,204)	$	(45,819)	$	11,514	$	855,659

	For the three months ended September 30,				For the nine months ended September 30,
	2023		2022		2023		2022
Dividends declared per share of common stock	$	0.01	$	0.01	$	0.03	$	0.03
Dividends declared and paid per share of common stock	$	0.01	$	0.01	$	0.03	$	0.03


	September 30, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	559,587	$	484,989
Cash segregated under regulatory requirements	16,407		17,021
Financial instruments owned, at fair value	45,453		39,319

Receivables from broker-dealers, clearing organizations, customers and related broker-dealers	1,175,253		559,680
Accrued commissions and other receivables, net	320,521		288,471
Loans, forgivable loans and other receivables from employees and partners, net	348,484		319,612
Fixed assets, net	176,399		183,478
Investments	35,718		38,575
Goodwill	500,797		486,585
Other intangible assets, net	196,532		192,783
Receivables from related parties	6,083		1,444
Other assets	477,024		463,014

Total assets	$	3,858,258	$	3,074,971
Liabilities, Redeemable Partnership Interest, and Equity
Short-term borrowings	$	—	$	1,917

Accrued compensation	174,476		176,781
Payables to broker-dealers, clearing organizations, customers and related broker-dealers	1,002,912		404,675
Payables to related parties	14,574		10,550
Accounts payable, accrued and other liabilities	627,194		683,104
Notes payable and other borrowings	1,183,443		1,049,217

Total liabilities	3,002,599		2,326,244
Commitments, contingencies and guarantees (Note 19)
Redeemable partnership interest	—		15,519
Equity
Stockholders’ equity:
Class A common stock, par value $0.01 per share; 1,500,000 and 750,000 shares authorized at September 30, 2023 and December 31, 2022, respectively; 397,201 and 471,934 shares issued at September 30, 2023 and December 31, 2022, respectively; and 389,868 and 325,858 shares outstanding at September 30, 2023 and December 31, 2022, respectively	3,972		4,719
Class B common stock, par value $0.01 per share; 300,000 and 150,000 shares authorized at September 30, 2023 and December 31, 2022, respectively; 109,453 and 45,884 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively, convertible into Class A common stock	1,095		459
Additional paid-in capital	2,059,436		2,559,418
Treasury stock, at cost: 7,333 and 146,076 shares of Class A common stock at September 30, 2023 and December 31, 2022, respectively	(40,335)		(711,454)
Retained deficit	(1,134,204)		(1,138,066)
Accumulated other comprehensive income (loss)	(45,819)		(45,431)
Total stockholders’ equity	844,145		669,645
Noncontrolling interest in subsidiaries	11,514		63,563
Total equity	855,659		733,208
Total liabilities, redeemable partnership interest, and equity	$	3,858,258	$	3,074,971


		Page
Note 1	Organization and Basis of Presentation	25
Note 2	Limited Partnership Interests in BGC Holdings and Newmark Holdings	28
Note 3	Summary of Significant Accounting Policies	31
Note 4	Acquisitions	31
Note 5	Divestitures	32
Note 6	Earnings Per Share	32
Note 7	Stock Transactions and Unit Redemptions	33
Note 8	Financial Instruments Owned, at Fair Value	37
Note 9	Collateralized Transactions	37
Note 10	Receivables from and Payables to Broker-Dealers, Clearing Organizations, Customers and Related Broker-Dealers	38
Note 11	Derivatives	38
Note 12	Fair Value of Financial Assets and Liabilities	41
Note 13	Related Party Transactions	45
Note 14	Investments	53
Note 15	Fixed Assets, Net	54
Note 16	Goodwill and Other Intangible Assets, Net	55
Note 17	Notes Payable, Other and Short-Term Borrowings	56
Note 18	Compensation	59
Note 19	Commitments, Contingencies and Guarantees	64
Note 20	Income Taxes	65
Note 21	Regulatory Requirements	66
Note 22	Segment, Geographic and Product Information	66
Note 23	Revenues from Contracts with Customers	68
Note 24	Leases	69
Note 25	Current Expected Credit Losses (CECL)	71
Note 26	Subsequent Events	72


Period	Total Number of Units Redeemed or Shares Repurchased	Weighted-Average Price Paid per Unit or Share		Approximate Dollar Value of Units and Shares That Could Be Redeemed/ Purchased Under the Program at September 30, 2023
Redemptions1
January 1, 2023—March 31, 2023	23	$	3.90
April 1, 2023—June 30, 2023	422	4.91
July 1, 2023—September 30, 2023	—	—

Total Redemptions	445	$	4.85
Repurchases2,3



January 1, 2023—March 31, 2023	846	$	4.97



April 1, 2023—June 30, 2023	9,814	4.44
July 1, 2023—July 31, 2023	3,000	4.68
August 1, 2023—August 31, 2023	1,612	5.01
September 1, 2023—September 30, 2023	3,474	5.24




Total Repurchases	18,746	$	4.70
Total Redemptions and Repurchases	19,191	$	4.70	$	359,656


	September 30, 2023						December 31, 2022
Derivative contract	Assets		Liabilities		Notional Amounts1		Assets		Liabilities		Notional Amounts1
FX swaps	$	2,838	$	3,901	$	560,009	$	3,134	$	5,796	$	586,020
Futures	684		—		6,145,380		—		1,268		4,253,088
Interest rate swaps	547		—		185,701,672		25		—		2,114,412
Forwards	274		1,034		211,199		603		569		197,278
Total	$	4,343	$	4,935	$	192,618,260	$	3,762	$	7,633	$	7,150,798


	September 30, 2023
	Gross Amounts		Gross Amounts Offset		Net Amounts Presented in the Statements of Financial Condition1
Assets
FX swaps	$	3,214	$	(376)	$	2,838
Futures	70,737		(70,053)		684
Interest rate swaps	66,637		(66,090)		547
Forwards	375		(101)		274
Total derivative assets	$	140,963	$	(136,620)	$	4,343
Liabilities
FX swaps	$	4,277	$	(376)	$	3,901
Forwards	1,135		(101)		1,034
Futures	70,053		(70,053)		—
Interest rate swaps	66,090		$	(66,090)	—
Total derivative liabilities	$	141,555	$	(136,620)	$	4,935


	Assets at Fair Value at September 30, 2023
	Level 1		Level 2		Level 3		Netting and Collateral		Total
Financial instruments owned, at fair value—Domestic government debt	$	32,098	$	—	$	—	$	—	$	32,098
Financial instruments owned, at fair value—Foreign government debt	—		12,429		—		—		12,429
Financial instruments owned, at fair value—Equities	586		—		—		—		586
Financial instruments owned, at fair value—Corporate bonds	—		340		—		—		340
FX swaps	—		3,214		—		(376)		2,838
Futures	—		70,737		—		(70,053)		684
Interest rate swaps	—		66,637		—		(66,090)		547
Forwards	—		375		—		(101)		274
Total	$	32,684	$	153,732	$	—	$	(136,620)	$	49,796


	Liabilities at Fair Value at September 30, 2023
	Level 1		Level 2		Level 3		Netting and Collateral		Total
FX swaps	$	—	$	4,277	$	—	$	(376)	$	3,901
Forwards	—		1,135		—		(101)		1,034
Futures	—		70,053		—		(70,053)		—
Interest rate swaps	—		66,090		—		(66,090)		—
Contingent consideration	—				5,999				5,999
Total	$	—	$	141,555	$	5,999	$	(136,620)	$	10,934


	Assets at Fair Value at December 31, 2022
	Level 1		Level 2		Level 3		Netting and Collateral		Total
Financial instruments owned, at fair value—Domestic government debt	$	31,175	$	—	$	—	$	—	$	31,175
Financial instruments owned, at fair value—Foreign government debt	—		7,678		—		—		7,678
Financial instruments owned, at fair value—Equities	466		—		—		—		466
FX swaps	—		3,623		—		(489)		3,134
Forwards	—		746		—		(143)		603
Interest rate swaps	—		895				(870)		25
Futures	—		64,769		—		(64,769)		—
Total	$	31,641	$	77,711	$	—	$	(66,271)	$	43,081


	Liabilities at Fair Value at December 31, 2022
	Level 1		Level 2		Level 3		Netting and Collateral		Total
FX swaps	$	—	$	6,285	$	—	$	(489)	$	5,796
Futures	—		66,037		—		(64,769)		1,268
Forwards	—		712		—		(143)		569
Interest rate swaps	—		870		—		(870)		—
Contingent consideration	—		—		24,279		—		24,279
Total	$	—	$	73,904	$	24,279	$	(66,271)	$	31,912


													Unrealized (gains) losses for the period included in:
	Opening Balance at July 1, 2023		Total realized and unrealized (gains) losses included in Net income (loss)¹		Unrealized (gains) losses included in Other comprehensive income (loss)²		Purchases/ Issuances3		Sales/ Settlements		Closing Balance at September 30, 2023		Net (income) loss on Level 3 Assets/Liabilities Outstanding at September 30, 2023		Other comprehensive income (loss) on Level 3 Assets/Liabilities Outstanding at September 30, 2023
Liabilities
Accounts payable, accrued and other liabilities:
Contingent consideration	$	8,909	$	110	$	—	$	(2,176)	$	(844)	$	5,999	$	44	$	—

SEC Form 10-Q filed by BGC Partners Inc

Chat with this insight

Recent Analyst Ratings for $BGCP

$BGCP Market Insights

Live Market Insights

Monday Is Your Last Chance To Buy BGC Partners Before The Dividend Payout

BGC Partners: Q1 Earnings Insights

BGC Partners Q1 EPS $0.23, Inline, Sales $532.90M Miss $535.40M Estimate

$BGCP Press Releases

Fastest customizable press release news feed in the world

BGC Group Hires Nicholas and Eric Ernst to Launch Weather Derivatives Desk

BGC's Second Quarter 2023 Financial Results Announcement to Be Issued Prior to Market Open on Wednesday, August 2, 2023

BGC Partners Completes Corporate Conversion to Full C-Corporation, Name Change to BGC Group, Inc., and Ticker Symbol Change to "BGC"

$BGCP Analyst Ratings

Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

Credit Suisse initiated coverage on BGC Partners with a new price target

$BGCP Large Ownership Changes

This live feed shows all institutional transactions in real time.

SEC Form SC 13G/A filed by BGC Partners Inc (Amendment)

SEC Form SC 13D/A filed by BGC Partners Inc (Amendment)

SEC Form SC 13D/A filed by BGC Partners Inc (Amendment)

$BGCP Financials

Live finance-specific insights

BGC's Second Quarter 2023 Financial Results Announcement to Be Issued Prior to Market Open on Wednesday, August 2, 2023

BGC Partners Updates its Outlook for the Second Quarter of 2023 and Provides an Update on the Corporate Conversion

BGC Partners Reports First Quarter 2023 Financial Results

$BGCP Leadership Updates

Live Leadership Updates

BGC Partners Appoints Jason W. Hauf as Chief Financial Officer

BGC Partners Updates its Outlook for the Fourth Quarter of 2020

$BGCP SEC Filings

BGC Partners Inc filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits

BGC Partners Inc filed SEC Form 8-K: Financial Statements and Exhibits

BGC Partners Inc filed SEC Form 8-K: Regulation FD Disclosure, Financial Statements and Exhibits

$BGCP Insider Trading

Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

Merkel Stephen M sold 136,891 shares, decreasing direct ownership by 93% to 9,618 units (SEC Form 4)

Richards David was granted 7,874 shares, increasing direct ownership by 12% to 71,173 units (SEC Form 4)

Mbanefo Arthur U was granted 7,874 shares, increasing direct ownership by 21% to 44,619 units (SEC Form 4)

Recent Analyst Ratings for
$BGCP

$BGCP
Market Insights

$BGCP
Press Releases

$BGCP
Analyst Ratings

$BGCP
Large Ownership Changes

$BGCP
Financials

$BGCP
Leadership Updates

$BGCP
SEC Filings

$BGCP
Insider Trading


													Unrealized (gains) losses for the period included in:
	Opening Balance at July 1, 2022		Total realized and unrealized (gains) losses included in Net income (loss)¹		Unrealized (gains) losses included in Other comprehensive income (loss)²		Purchases/ Issuances		Sales/ Settlements		Closing Balance at September 30, 2022		Net (income) loss on Level 3 Assets/Liabilities Outstanding at September 30, 2022		Other comprehensive income (loss) on Level 3 Assets/Liabilities Outstanding at September 30, 2022
Liabilities
Accounts payable, accrued and other liabilities:
Contingent consideration	$	22,791	$	(62)	$	—	$	—	$	—	$	22,729	$	(62)	$	—


													Unrealized (gains) losses for the period included in:
	Opening Balance at January 1, 2023		Total realized and unrealized (gains) losses included in Net income (loss)¹		Unrealized (gains) losses included in Other comprehensive income (loss)²		Purchases/ Issuances3		Sales/ Settlements		Closing Balance at September 30, 2023		Net income (loss) on Level 3 Assets / Liabilities Outstanding at September 30, 2023		Other comprehensive income (loss) on Level 3 Assets / Liabilities Outstanding at September 30, 2023
Liabilities
Accounts payable, accrued and other liabilities:
Contingent consideration	$	24,279	$	723	$	—	$	2,499	$	(21,502)	$	5,999	$	116	$	—


													Unrealized (gains) losses for the period included in:
	Opening Balance at January 1, 2022		Total realized and unrealized (gains) losses included in Net income (loss)¹		Unrealized (gains) losses included in Other comprehensive income (loss)²		Purchases/ Issuances		Sales/ Settlements		Closing Balance at September 30, 2022		Net (income) loss on Level 3 Assets/Liabilities Outstanding at September 30, 2022		Other comprehensive income (loss) on Level 3 Assets/Liabilities Outstanding at September 30, 2022
Liabilities
Accounts payable, accrued and other liabilities:
Contingent consideration	$	29,756	$	(516)	$	—	$	—	$	(6,511)	$	22,729	$	(516)	$	—


	Fair Value as of September 30, 2023
	Assets		Liabilities		Valuation Technique	Unobservable Inputs	Range	Weighted Average
						Discount rate1	7.2%-9.2%	8.3%

Contingent consideration	$	—	$	5,999	Present value of expected payments	Probability of meeting earnout and contingencies	90%-100%	97.4%2


	Fair Value as of December 31, 2022
	Assets		Liabilities		Valuation Technique	Unobservable Inputs	Range	Weighted Average
						Discount rate1	6.8%-10.2%	9.9%

Contingent consideration	$	—	$	24,279	Present value of expected payments	Probability of meeting earnout and contingencies	5%-100%	71.2%2


	September 30, 2023				December 31, 2022
	Investment		Maximum Exposure to Loss		Investment		Maximum Exposure to Loss
Variable interest entities¹	$	1,886	$	2,316	$	2,530	$	2,959


	September 30, 2023		December 31, 2022
Computer and communications equipment	$	100,414	$	95,730
Software, including software development costs	348,830		320,275
Leasehold improvements and other fixed assets	95,910		94,875
	545,154		510,880
Less: accumulated depreciation and amortization	(368,755)		(327,402)
Fixed assets, net	$	176,399	$	183,478


	Goodwill
Balance at December 31, 2022	$	486,585
Acquisitions	14,831
Measurement period adjustments	(1,493)
Cumulative translation adjustment	874
Balance at September 30, 2023	$	500,797


	September 30, 2023
	Gross Amount		Accumulated Amortization		Net Carrying Amount		Weighted- Average Remaining Life (Years)
Definite life intangible assets:
Customer-related	$	195,846	$	93,699	$	102,147	8.8
Technology	23,997		23,997		—		N/A
Noncompete agreements	20,144		19,258		886		3.6
Patents	11,880		10,628		1,252		3.0
All other	18,434		8,419		10,015		9.6
Total definite life intangible assets	270,301		156,001		114,300		8.8
Indefinite life intangible assets:
Trade names	79,570				79,570		N/A
Licenses	2,208				2,208		N/A
Domain name	454				454		N/A
Total indefinite life intangible assets	82,232		—		82,232		N/A
Total	$	352,533	$	156,001	$	196,532	8.8


2023	$	4.0
2024	16.2
2025	16.2
2026	15.8
2027	11.5
2028 and thereafter	50.6
Total	$	114.3