BGC Partners Posts Marginal Decrease in FX Revenue in 2022

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BGC Partners, a major
financial technology and brokerage firm, released its fourth quarter and full
year 2022 results on Monday, reporting marginal decreases in its consolidated
revenue from forex trading . The numbers decreased by 0.3% quarter-over-quarter (compared to 2021) to $71.9 million and 0.5% year-over-year (YoY) to $299.7 million.

The decline in revenue also reflects in other asset classes and were even more significant: rates went down 6.2% to $123.6
million in Q4 2022 and 1.6% to $549.5 million during fiscal year 2022. On the
contrary, while the credit market improved by 3.2% to $68.1 million during the
last quarter, revenue from this asset class dropped by 5.6% to $271.4 at the end of last year.

Furthermore, BGC Partners’
energy and commodities revenue rose by 2.9% YoY to $73.6 million during Q4 2022 but
dropped by 1.6% to $291.7 million. Similarly, for equities , the revenue dropped
by 1.6% to $60.7 million during the last four months of 2022 and much fell deeper by 5.3% to $234.5 million by full year.

The total brokerage revenue from these asset groups (excluding insurance) dropped
slightly by 1.3% to $397.8 million, which is down from $403 million during Q4
2022. Year-over-year, total revenue of the asset classes also decreased by 2.6% to
$1.65 billion.

Giving more details in the financial report, BGC Partners noted that it expects to improve its brokerage revenue performance in 2023. This is even as
the financial technology company noted that its brokerage revenue grew 6% in
December 2022 and has maintained the momentum into 2023 with revenue up by 8%.

“Manufactured zero
and near-zero interest rates over the last fourteen years has caused the
breakdown and disappearance of the historic correlation between issuance and
trading volume growth. With meaningful interest rates and issuance that are
multiples above 2008 levels, we believe the return of this strong positive
correlation will drive our trading volumes significantly higher. This has set
the stage for broad-based growth across our businesses and asset classes. We
expect continued growth throughout 2023 and for the foreseeable future,” BGC Partners explained.

Meanwhile, BGC
in November last year rebranded to BGC Group as
part of a broader strategy to simplify and reorganize the current institutional
structure under a new Corporate Conversion Agreement.

BGC Partners, a major
financial technology and brokerage firm, released its fourth quarter and full
year 2022 results on Monday, reporting marginal decreases in its consolidated
revenue from forex trading . The numbers decreased by 0.3% quarter-over-quarter (compared to 2021) to $71.9 million and 0.5% year-over-year (YoY) to $299.7 million.

The decline in revenue also reflects in other asset classes and were even more significant: rates went down 6.2% to $123.6
million in Q4 2022 and 1.6% to $549.5 million during fiscal year 2022. On the
contrary, while the credit market improved by 3.2% to $68.1 million during the
last quarter, revenue from this asset class dropped by 5.6% to $271.4 at the end of last year.

Furthermore, BGC Partners’
energy and commodities revenue rose by 2.9% YoY to $73.6 million during Q4 2022 but
dropped by 1.6% to $291.7 million. Similarly, for equities , the revenue dropped
by 1.6% to $60.7 million during the last four months of 2022 and much fell deeper by 5.3% to $234.5 million by full year.

The total brokerage revenue from these asset groups (excluding insurance) dropped
slightly by 1.3% to $397.8 million, which is down from $403 million during Q4
2022. Year-over-year, total revenue of the asset classes also decreased by 2.6% to
$1.65 billion.

Giving more details in the financial report, BGC Partners noted that it expects to improve its brokerage revenue performance in 2023. This is even as
the financial technology company noted that its brokerage revenue grew 6% in
December 2022 and has maintained the momentum into 2023 with revenue up by 8%.

“Manufactured zero
and near-zero interest rates over the last fourteen years has caused the
breakdown and disappearance of the historic correlation between issuance and
trading volume growth. With meaningful interest rates and issuance that are
multiples above 2008 levels, we believe the return of this strong positive
correlation will drive our trading volumes significantly higher. This has set
the stage for broad-based growth across our businesses and asset classes. We
expect continued growth throughout 2023 and for the foreseeable future,” BGC Partners explained.

Meanwhile, BGC
in November last year rebranded to BGC Group as
part of a broader strategy to simplify and reorganize the current institutional
structure under a new Corporate Conversion Agreement.

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