BGC Partners Inc. (Nasdaq: BGCP), a major financial technology and brokerage firm, announced on Wednesday its plans to change its name to BGC Group, Inc. and its stock ticker symbol to BGC. The move is a part of a broader strategy to simplify and reorganize the current institutional structure under a new Corporate Conversion Agreement.
According to the press release, BGC Partners wants to become a 'Full C-Corporation', currently being 'Up-C Corporation'. A C-Corporation is a legal structure for a company in which shareholders and owners are taxed independently from the institution. Corporations of this type affect the limitation of liability of company representatives. The most owners and shareholders can lose is the amount they have invested.
"With the execution of these agreements, the Company will move rapidly with its conversion to a simpler, more transparent corporate structure. We believe increasing simplicity, while reducing operational complexity, will deliver tremendous value to BGC," Howard W. Lutnick, the Chairman of the Board and Chief Executive Officer of BGC, said.
"We are excited to announce the Company's name change from BGC Partners to BGC Group and our new simpler ticker symbol 'BGC' at closing."
BGC Reports Higher Earnings in Q3
On 2 November 2022, the company reported its financial results for the quarter ended 30 September 2022. According to the published data, revenues were 12.1% compared to the same quarter a year earlier and stood at $416.6 million.
However, the post-tax adjusted earnings amounted to $77.5 million, raising 4.1% year-over-year (YoY). Adjusted EBITDA was also higher, reaching $107.0 million and translating to a 14.3% jump from $93.6 million reported in Q3 2021.
"With respect to our corporate conversion, I am happy to report that we expect to execute definitive agreements prior to the end of the year," Lutnick commented.
In September, BGC Partners recruited Ian Daniels, a well-known sales expert in the finance industry. He joined the publicly-listed company as the Global Head of Fenics NDF, having previously worked for Nomura as the Head of eFX Distribution and an Executive Director for EMEA.
