BGC Partners reports Its FX Business Growing by 6% over Last Year

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.

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 Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, 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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, and all the benefits of our technology platform.”