FX Revenues at BGC Partners Drop by 5% QoQ, as FX Volumes Rise by 17%
- This being the last quarter affected by the sale of eSpeed to NASDAQ OMX, the company has reported that it is expecting its overall earnings to increase between 39 and 60% in the third quarter of 2014.
Global brokerage company, BGC Partners, has announced its results for the second quarter of 2014. Focusing on the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term part of business we are seeing revenues rise by 25% in the company's fully electronic FX business, with the quarter on quarter figure marking a 5% decline due to low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term throughout the second quarter and regulatory issues affecting BGC's bank customers.
At the same time the company is reporting that volumes of foreign exchange derivatives and spot FX have totaled $2.45 trillion, which is higher by 17% over last quarter's figures. According to the company's earnings announcement, GAAP revenues were lower by 65% to $417 million, while on the bottom line the firm registered a 92% decline to $14.9 million, which is 92% lower when compared to last year's numbers. These are the last year-on-year results affected by the sale of the firm's eSpeed business to NASDAQ OMX.
Howard W. Lutnick, Chairman and Chief Executive Officer of BGC, stated: “We achieved this improvement in the face of difficult market conditions in our Financial Services segment, and despite the sale of eSpeed, which generated approximately $24 million in revenues and $14.2 million in pre-tax profits in the second quarter of 2013." He elaborated on the eSpeed sale, stating: “Within a year of the NASDAQ OMX transaction, we have effectively replaced the distributable earnings from eSpeed. We expect our pre-tax distributable earnings to increase by between 39 percent and 60 percent year-on-year in the third quarter of 2014. Our cash position5 is over $640 million and we expect to receive approximately $600 million in NASDAQ OMX stock. This gives us over a billion dollars of firepower to grow our profits.
Global brokerage company, BGC Partners, has announced its results for the second quarter of 2014. Focusing on the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term part of business we are seeing revenues rise by 25% in the company's fully electronic FX business, with the quarter on quarter figure marking a 5% decline due to low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term throughout the second quarter and regulatory issues affecting BGC's bank customers.
At the same time the company is reporting that volumes of foreign exchange derivatives and spot FX have totaled $2.45 trillion, which is higher by 17% over last quarter's figures. According to the company's earnings announcement, GAAP revenues were lower by 65% to $417 million, while on the bottom line the firm registered a 92% decline to $14.9 million, which is 92% lower when compared to last year's numbers. These are the last year-on-year results affected by the sale of the firm's eSpeed business to NASDAQ OMX.
Howard W. Lutnick, Chairman and Chief Executive Officer of BGC, stated: “We achieved this improvement in the face of difficult market conditions in our Financial Services segment, and despite the sale of eSpeed, which generated approximately $24 million in revenues and $14.2 million in pre-tax profits in the second quarter of 2013." He elaborated on the eSpeed sale, stating: “Within a year of the NASDAQ OMX transaction, we have effectively replaced the distributable earnings from eSpeed. We expect our pre-tax distributable earnings to increase by between 39 percent and 60 percent year-on-year in the third quarter of 2014. Our cash position5 is over $640 million and we expect to receive approximately $600 million in NASDAQ OMX stock. This gives us over a billion dollars of firepower to grow our profits.