BGC Partners Rebrands as BGC Group and Transforms to C-Corp

BGC Partners, the global brokerage and financial technology company, has announced the completion of its corporate conversion to a full C-Corporation. As part of this transition, the company will now be known as BGC Group, Inc. and has updated its Nasdaq ticker symbol from ‘BGCP’ to ‘BGC’.

The change also extends to the company's digital presence. The main website is now accessible at http://www.bgcg.com and the investor relations website at http://ir.bgcg.com.

BGC Group Starts a New Chapter in Corporate Structure

BGC Group, Inc. will commence trading on Nasdaq under the new ticker symbol at the market opening on 3 July 2023. News of the rebranding was first published in November. After more than six months, the process of structural change is now complete.

Howard W. Lutnick, the Chairman of the Board and Chief Executive Officer of BGC, views the latest move as a significant development for the company. "Today represents an important step for BGC, with its conversion to a simpler, more efficient corporate structure," he commented.

Lutnick believes the revamped BGC will attract a broader and more diverse investor base in the future. The company aims to foster growth and deliver substantial long-term value to its shareholders. With improving trading conditions across the business and the upcoming launch of FMX, the company's electronic trading platform, Lutnick regards this as an exciting time for BGC.

BGC Group, Inc. is a leading global brokerage and financial technology company. Its various affiliates Affiliates Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Read this Term offer a broad range of products, including foreign exchange (FX), equities and futures. Additionally, BGC provides brokerage, clearing, and other back-office services to financial and non-financial institutions.

What Is the C-Corporation?

C-Corporations, commonly known as C-Corps, are one of the most prevalent types of legal structures for corporations in the United States. Unlike other corporate structures, a C-Corp is an independent legal entity distinct from its owners, the shareholders.

This separation provides a crucial benefit: limited liability. Shareholders are typically held accountable only for their investment in the corporation's stock, which means they are shielded from personal liability for the corporation's debts and legal obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term.

This corporate structure provides fluidity in terms of ownership. Shares in a C-Corp are easily transferable, allowing shareholders to sell their stakes without substantial barriers. Moreover, corporations can raise growth capital by issuing either common or preferred stock.

Despite the advantages, one significant downside of the C-Corp is double taxation. This situation arises when the corporation's profits are taxed initially at the corporate level and then again at the individual level when these profits are distributed as dividends to shareholders.

Analyzing BGC’s Financial Performance

According to BGC Partners report for 2022, which was published in February, the company saw a marginal decline in revenues 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 total brokerage revenue from all traded asset groups (excluding insurance) experienced a slight drop of 1.3% to $397.8 million, which is down from $403 million during Q4 2022. Furthermore, on a YoY basis, the total revenue of the asset classes declined 2.6% to $1.65 billion.

Three months later, Finance Magnates reported on BGC's results for the first quarter of 2023. FX revenues experienced modest growth this time, rising 0.2% to $80.2 million (or 1% in constant currency) compared to the first quarter of 2022.