Publicly listed global brokerage company BGC Partners has unveiled in separate press releases its earnings for the first quarter of 2014 and an acquisition aiming to expand the company’s presence in Latin America with an agreement to purchase Mexican inter-dealer broker Remate Lince, S.A.P.I. de C.V. BGC Partners posted flat revenues when compared to the same period of 2013 totaling $445.9 million, while adjusted EBITDA has soared by 24.9% to $74.6 million.
The firm’s electronic spot FX business was the slowest growing sector of the company with revenues rising by 6% over the same period last year. BCG Partners seems to be bucking the trend, as many major banks and retail brokerages have experienced steady declines in their FX business when compared to the same quarter of last year.
Fully Electronic FX volumes have grown by 14.9% over the final quarter of 2013 and by 23.6% from a year ago, totaling $2 trillion for the first quarter of 2014, as the number of transactions has also grown by almost 30% over the same period in 2013 to 1,708,190. It’s worth mentioning that during the same period the CME Group marked an almost 18% year-on-year decline in its FX futures contracts volumes.
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The firm stated that the most vibrant sector of its business has been its real estate arm, Newmark Grubb Knight Frank, where revenues grew by almost 50% over the same period of last year.
Moving on to the acquisition, the target company Remate Lince is specializing in dealing with spot and forward Mexican peso (MXN) FX products, MXN interest rate swaps, cross-currency swaps and various local interest rates derivatives, while boasting substantial business on the local fixed income market. This marks the first new acquisition for BCG Partners in the region after the firm acquired Brazilian Liquidez DTVM Ltda. back in 2009.
Apparently the move represents a renewal of BGC’s commitment to grow its business in the Latin America region. The company’s President, Shaun D. Lynn stated, “BGC is one of the fastest growing inter-dealer brokers in the industry. We continue to expand our international footprint and suite of products, delivering exceptional value to our clients. Latin America has terrific growth potential, as we have seen with Liquidez in Brazil and our Euro Brokers business in Mexico. We look forward to leveraging BGC’s existing presence and expertise to unlock even greater value and to offer our global customers new products in the Mexican market and offer Mexican customers new access to global distribution opportunities, greater liquidity, and all the benefits of our technology platform.”