BGC Partners

BGC Partners, Inc.
Public
Traded as NASDAQ: BGCP
Industry Banking, Financial Services
Founded 1945 (1945)
Headquarters 499 Park Avenue,
New York, New York, U.S.
Area served
 Worldwide
Key people
 Howard Lutnick
(Chairman & CEO)
Products Fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commercial real estate, commodities, futures, and structured products
Revenue Increase US$ 2.506 billion (2015)[1]
Number of employees
 6,547 (2012)
Website Official website

BGC Partners is an American global financial services company based in New York City. Originally formed as part of the larger Cantor Fitzgerald organization, BGC Partners became its own entity in 2004.

History

1945–1990

In 1945, Bernard Gerald Cantor founded a brokerage service for inter-dealer fixed income markets. The resulting company was B.G. Cantor and Company, which later became Cantor Fitzgerald.[2]

In 1965 Cantor Fitzgerald established an Institutional Equities Sales and Trading Division, which offers large block trading to asset managers, pension funds, and portfolio managers. In 1983, Cantor Fitzgerald became the first firm to offer worldwide screen brokerage services in US Government Securities.

1991–2001

In 1991, Howard Lutnick was named President of Cantor Fitzgerald, after having worked at the firm for the previous eight years.[3] Lutnick placed a new emphasis on technological innovation at the company, and in 1996 lead the development of eSpeed, which went public in 1999.[4]

The September 11, 2001 attacks claimed 658 employees of Cantor Fitzgerald and eSpeed, whose headquarters were in the World Trade Center.[4] In response to the attacks, BGC Partners and Cantor Fitzgerald pledged to donate 25% of their profits to families of deceased employees.[5]

2004–present

BGC Partners was formed in 2004 when Cantor Fitzgerald spun out its voice brokerage business. The initials BGC standing for that company's founder, Bernard Gerald Cantor. As part of the spin-off, Cantor Fitzgerald's Singapore office is renamed BGC.[6]

In April 2005, BGC Partners LP merged with Maxcor Financial Group Inc. to form BGC Partners.[7][8]

In September 2005, BGC Partners held their first annual Charity Day event. The event featured Harry Carson, Boomer Esiason, and Mariano Rivera and raised money for the Cantor Fitzgerald Relief Fund among other charities.[9]

In 2007, BGC Partners opened an office in Seoul, South Korea[10] and became the first inter-dealer broker to open an office in Istanbul, Turkey.[11]

In 2008, BGC Partners merged with eSpeed and becomes BGC Partners Inc.[12][13]

In November 2009, BGC Partners won Asia Risk Magazine's first ever award for Technology Development.[14]

On April 1, 2013, NASDAQ OMX Group agreed to acquire an electronic Treasurys marketplace from brokerage firm BGC Partners Inc. in a cash-and-stock deal valued at as much as $1.23 billion.[15] The sale caused BGC to see the biggest gain in stock prices since going public in December 1999.[16] The assets sold to Nasdaq in this deal represented $100 million in sales in 2012, less than 6% of BGC's overall total.[17]

On October 2, 2013 BGC’s subsidiary BGC Derivative Markets, L.P. launched operations as a Swap Execution Facility (SEF), consistent with the derivatives trading regulations under the Dodd-Frank Act. This followed BGC receiving CFTC approval to operate a Swap Execution Facility in September 2013.[18][19]

Global Charity Day

BGC Charity Day was founded in 2005 to raise money for the Cantor Fitzgerald Relief Fund and other nonprofits as a way to honor the victims of 9/11. Each year on or near September 11, BGC Charity Day brings in celebrities, athletes and politicians alike to man their phones and speak with clients, with all revenue from the day being donated to charities of choice. The Charity Day event has also spread beyond New York to all of BGC Partners' international offices.

Year Funds Raised (millions) Charities Benefitted (US) Attendees
2005 ₤2.2[20] Cantor Foundation, CLIC Sargent, The Shane Warne Foundation Boomer Esiason, Harry Carson, Mariano Rivera
2006 $5 Safe at Home Foundation, Daniel Pitino Foundation, Happy Hearts, Minority Athletes Networking ETC, Marine Corporation Foundation for Children Phil Simms, Rick Pitino, Petra Němcová, Joe Torre
2007 $6[21] Books for Kids Project FIND, Blythedale Children's Hospital, The Cancer Research Institute, NARSAD, Project Find, Wounded Warrior Project Eli Manning, Tony Sirico, Whoopi Goldberg, Yogi Berra, Bernie Williams, Boomer Esiason
2008 $8[22] Baby Buggy, The Boomer Esiason Foundation, The Children's Institute, Ice Hockey in Harlem, Jubilee Center, Mercy Center, National Downl Syndrome Society, Project Find, Quality Services for the Autism Community, The Valerie Fund, Wounded Warrior Project Tiki Barber, Dr. Ruth Westheimer, Michael Bloomberg, Steve Buscemi, Donald Trump[23]
2009 $10[24] The Bone Marrow Foundation, The Boomer Esiason Foundation, Childhelp, The Children's Institute, Coast to Coast Against Cancer, Friends of the Fighting 69th, Garden of Dreams, Harlem RBI, Jubilee Center, Mercy Center, Quality Services for the Autism Community, The Valerie Fund, Wounded Warrior Project Lady Gaga, Mika Brzezinski, Joe Scarborough, Natalie Morales[25]
2010 $10[26] Baby Buggy, Bone Marrow Foundation, Boomer Esiason Foundation, Building Homes for Heroes, Childhelp, Eli Manning Foundation, The Felix Organization, Foundation for Sight and Sound, Friends of the Fighting 69th, Garden of Dreams, Harlem RBI, Jubilee Center, Level the Field, Mercy Center, Solving Kids Cancer, Team KJ, Tuesday's Children, Wounded Warrior Project, 52nd Street Project. Hilary Duff, Edie Falco, Gabrielle Union, Mark Ruffalo, Jon Voight,[27] Billy Crudup[28]
2011 $12[29] Alliance for Lupus Research, AmeriCares, Boomer Esiason Foundation, Building Homes for Heroes, Felix Organization, Garden of Dreams, Happy Hearts, Harlem RBI, Intrepid Sea, Air and Space, Make-a-Wish Foundation, Services for the Underserved, Solving Kids Cancer, St. Christopher's, Tony Alt Foundation, USTA Serves, Wheelchair Sports Federation, Worldwide Orphans Foundation, Wounded Warrior Project, Youth Consultation Services Ronnie Wood, Prince Harry, Cherie Blair, Bill Clinton, Carmelo Anthony, Eli Manning, Henrik Lundqvist, Ike Davis, John McEnroe, Mark Sanchez, Rex Ryan, George W. Bush, Russell Simmons, Ben Stiller[30][31]
2012 $12[32] Alliance for Lupus Research, Boomer Esiason Foundation, Building Homes for Heroes, The Felix Organization, Garden of Dreams, Solving Kids' Cancer, St. Christopher's, Inc., The Tony Alt Memorial Foundation, Wounded Warrior Project, Youth Consultation Service, The 52nd Street Project, The Allan Houston Legacy Foundation Susan Sarandon, Edie Falco, Curtis "50 Cent" Jackson, Rudy Giuliani, Carmelo Anthony, Mike Woodson, John McEnroe, Andrew Garfield,[33] Carol Alt, Eli Manning,[34] Rex Ryan, Mark Sanchez, Mike Tannenbaum[35]
2013 $12[36] The 52nd Street Project, The Allan Houston Legacy Foundation, Alliance for Lupus Research, Baby Buggy, Boomer Esiason Foundation, Boys Hope Girls Hope of New York, Building Homes for Heroes, Carmelo Anthony Foundation, Catalog for Giving of NYC, Emergency Children's Help Organization, G-Unity Foundation, Garden of Dreams Foundation, Game Knights, Harlem RBI, Jason Kidd Foundation, Only Make Believe, Point of Hope, Self Help Africa, Solving Kids' Cancer, St. Mary's Healthcare System for Children, Todd Ouida Children's Foundation, Tony Alt Memorial Foundation, Wounded Warrior Project, Generation Rescue, The Noreen Fraser Foundation HRH Prince Harry and HRH Prince William, Zachary Quinto,[37] Curtis “50 Cent” Jackson, Sean "Diddy" Combs, Caitlyn Jenner (then Bruce),[lower-alpha 1][39]Julianne Moore,[39] Billy Crystal,[39] Tony Sirico, Bobby Cannavale, Edie Falco,[40] Jenny McCarthy,[41] Boomer Esiason, Craig Carton, Carmelo Anthony,[42] Metta World Peace, Jason Kidd[39] and Deron Williams, Mark Teixeira, Ryan Lochte, Nick Cannon, Carol Alt and Lily Aldridge.

Philanthropy

Hurricane Sandy Relief

When Hurricane Sandy hit the New York and New Jersey coasts in October 2012, damages quickly totaled in the billions, with thousands of family homes completely destroyed along beach properties. A Hurricane Sandy Family Relief Program was established and funded largely by BGC Partners and Cantor Fitgerald's Charity Day efforts. $10 million in the form of $1,000 debit cards were handed out to families whose homes were damaged in the storm.[43] The eligible families were identified through nineteen schools located in areas hardest hit by the storm.[44]

Cantor Fitzgerald Slacks On 9/11 Pledge, But Promises $10 Million To Sandy Relief [45]

Oklahoma Tornado Relief

On May 20, 2013, a tornado struck Moore, Oklahoma, killing 24 people and injuring hundreds more. Two days later, Howard Lutnick appeared on the Piers Morgan Live TV show and pledged to donate $2 million to families affected by the tornado. The donation was given out in the form of $1,000 debit cards given out to area families.

Management & Directors

Offices

The company's global headquarters are in Midtown, New York City, while it also has an office in the Downtown Financial District. The company and its associated businesses also operate offices around the world:

North America

South America

Europe

Asia

Australia

Africa

Associated businesses

Controversy

In May 2012 the Financial Services Authority, Britain's financial regulator, announced its decision to prohibit Anthony Verrier (a senior executive at BGC) from performing any function in relation to any regulated activity in the financial services industry.[59] The FSA stated it believes that Verrier is not a fit and proper person due to concerns over his honesty, integrity and reputation. Its decision followed a civil court ruling that Verrier led an unlawful poaching conspiracy against rival interdealer broker Tullett Prebon and did not tell the truth about it in court.

Also in May 2012 a story was published by the New York Daily News under the headline 'Cantor Fitzgerald VP was boss from hell, secretary says in suit'[60] which reported on a lawsuit brought against the company by former employee Crystal Mitchell. Mitchell worked as an executive assistant to Michael Lampert at BGC USA, an affiliate of Cantor Fitzgerald, in March 2011. According to the suit filed by her lawyer David Harrison, her boss once threw a cup of tea at her because she hadn't removed the teabag. "The boiling hot liquid spilled on [Mitchell], burning her stomach and upper leg, and staining her clothes.” the suit said, adding that “Almost daily, Lampert humiliated and degraded Mitchell, yelling at her as if she was inferior and calling her: ‘stupid,’ ‘moron,’ ‘the dumbest person I ever met,’ ‘incompetent,’ and ‘idiot,’ ”. Elsewhere in the discrimination suit, she says she complained about the treatment to human resource managers — but her pleas for help were ignored.

In October 2012 the New York Post ran an article entitled 'Cantor, Moody's Dogfight' reporting on a 'feud' between the company and Moody's Investors Service.[61] The article stated that Cantor Fitzgerald and Moody's had been feuding for months over differing opinions of Cantor's profitability. In July 2012 Cantor terminated its relationship with Moody's. In October 2012 the ratings agency dropped BGC's status to Ba2.[62] In December 2012 Bloomberg reported that S&P cut Cantor to BBB- and left the rating for BGC Partners Inc., the company’s interdealer broker affiliate, unchanged at the lowest investment grade.[63]

Two articles appeared in January 2013 written by Bloomberg journalist Zeke Faux. The first, dated January 8th was titled 'Cantor May Face Another Ratings Cut as Fitch Cites Slump' and quoted Mohak Rao, a Fitch analyst.[64] Rao wrote in a report "Cantor’s institutional business and BGC’s financial brokerage business will remain challenged in the medium term because of lower trading volume”.

Two days later Zeke Faux published a second, much longer, article titled 'Cantor Growth Plan Sputters as 41% of Touted Hires Exit' citing that 41% of the 158 traders and bankers whose hirings Cantor announced in news releases since 2009 had left, according to industry records.[65]

Sponsorship

In 2012 the company became the title sponsor of the Masters snooker tournament.[66]

Notes

  1. ↑ Jenner changed her name due to gender transition in 2015.[38]

References

  1. ↑ http://www.nasdaq.com/symbol/bgcp/revenue-eps
  2. ↑ Edward Helmore (July 13, 1996), Obituary: Gerald Cantor The Independent.
  3. ↑ Bloomberg: Howard Lutnick Bio
  4. 1 2 Craig, Susanne. "The Survivor Who Saw the Future for Cantor Fitzgerald". DealBook. The New York Times.
  5. ↑ Kulkarni, Sangeeta. "Cantor Fitzgerald to set up backoffice operations". The Economic Times. Bennett, Coleman & Co. Ltd. Retrieved 5 June 2013.
  6. ↑ Jessica Jaganathan (May 20, 2012). "Brokerage Mint Partners to start Singapore operations: sources". Reuters.
  7. ↑ http://www.sec.gov/Archives/edgar/data/931707/000095017205001053/ny585102_4.txt
  8. ↑ "COMPANY NEWS; BGC TO BUY MAXCOR, A RIVAL BROKERAGE FIRM". The New York Times. 5 April 2005. Retrieved 13 May 2013.
  9. ↑ "BGC Partners Hold First Annual Charity Day". BusinessWire. Retrieved 13 May 2013.
  10. ↑ SEC Registration Statement
  11. ↑ "BGC Opens New Office In Istanbul, Turkey - Rapid Global Expansion With Addition In Continental Europe". MondoVisione. Retrieved 13 May 2013.
  12. ↑ "A Story of Rebuilding" (PDF). Leaders Magazine. 34 (4): 45–46. Oct–Dec 2001.
  13. ↑ http://www.banking.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=7842faef-6cc5-49f8-834e-e41557a0c954
  14. ↑ "BGC Partners Wins Asia Risk Award for Technology Development". Bloomberg. Retrieved 13 May 2013.
  15. ↑ Jacob Bunge; Kristin Jones (2 April 2013). "Nasdaq to buy eSpeed for up to $1.23 billion". Market Watch. The Wall Street Journal. Retrieved 13 May 2013.
  16. ↑ Faux, Zeke (2 April 2013). "BGC Partners Jumps as Lutnick Sells ESpeed Unit". Bloomberg. Retrieved 13 May 2013.
  17. ↑ Whiteman, Lou (2 April 2013). "Nasdaq buys eSpeed from BGC Partners". The Deal Pipline. Retrieved 13 May 2013.
  18. ↑ "BGC Partners launches swap execution facility". HedgeWeek. GFM Ltd. Retrieved 8 November 2013.
  19. ↑ "BGC launches SEF". Automated Trader. Automated Trader Ltd. Retrieved 8 November 2013.
  20. ↑ MCGREGOR, KATE. "Cantor's BGC Hitting its Stride in Full Voice". Institutional Investor. Institutional Investor LLC. Retrieved 5 June 2013.
  21. ↑ "BGC Partners Raises over $6 Million on Third Annual Global Charity Trading Day" (Press release). BGC Partners. September 12, 2007.
  22. ↑ "BGC raises over $8M". Philanthropy Journal. Institute for Nonprofits at NC State University. Retrieved 31 May 2013.
  23. ↑ "Charity Day attracts Lady Gaga, Donald Trump and kids from Hoboken". NJ.com. New Jersey On-Line LLC.
  24. ↑ "BGC Partners giving $10 million". Philanthropy Journal. Institute for Nonprofits at NC State University. Retrieved 31 May 2013.
  25. ↑ "Charity Day attracts Lady Gaga, Donald Trump and kids from Hoboken". NJ.com. New Jersey On-Line LLC. Retrieved 31 May 2013.
  26. ↑ "Sept. 15: Walmart, Piper, Prudential, and more". Philanthrophy Journal. Institute for Nonprofits at NC State University. Retrieved 31 May 2013.
  27. ↑ "'Sopranos' stars, Hilary Duff lend a hand at BGC Charity Day". Los Angeles Times. Los Angeles Times. Retrieved 31 May 2013.
  28. ↑ D'Zurilla, Christie. "Billy Crudup as Timothy Geithner — 'Eat Pray TARP'?". Ministry of Gossip. Los Angeles Times. Retrieved 18 June 2013.
  29. ↑ "Cantor Fitzgerald and BGC Partners Globally Raised Approximately $12 Million on Charity Day to Commemorate the 10th Anniversary". Bloomberg. Bloomberg L.P. Retrieved 31 May 2013.
  30. ↑ "Eli Manning Hangs with Bill Clinton at Cantor Fitzgerald Charity Day". TerezOwens.com.
  31. ↑ "Russell Simmons And Friends Make Big Money Deals At The BGC Partners Inc Charity (PHOTOS)". The Decider. Global Grind.
  32. ↑ "BGC Partners And Cantor Fitzgerald Raise Approximately $12 Million On Their September 11, 2012 Charity Day". Marketplace The Numbers. American Public Media. Retrieved 31 May 2013.
  33. ↑ "Annual Charity Day Hosted By Cantor Fitzgerald and BGC". Retrieved 18 June 2013.
  34. ↑ "Dialing for Dollars on Wall Street". NY Culture. Dow Jones & Company, Inc. Retrieved 18 June 2013.
  35. ↑ "Jets Are 'Trading Partners' in NYC on 9/11". New York Jets. Retrieved 18 June 2013.
  36. ↑ "BGC Partners And Cantor Fitzgerald Raise Approximately $12 Million On Their September 11, 2013 Charity Day". Yahoo! Finance. Retrieved 8 November 2013.
  37. ↑ Billard, Mary. "Zachary Quinto: A Playwright's Home, an Actor's Muse". The New York Times. The New York Times Company. Retrieved 8 November 2013.
  38. ↑ Buzz Bissinger (June 1, 2015). "Introducing Caitlyn Jenner". Vanity Fair. Retrieved June 1, 2015.
  39. 1 2 3 4 "NYC FIRM THAT LOST 658 ON 9/11 HOLDS CHARITY DAY". AP Newswire. Associated Press. Retrieved 8 November 2013.
  40. ↑ Stock, Kyle. "Cantor Fitzgerald Continues to Give It All Away on 9/11". BloomberyBusinessweek. Bloomberg L.{. Retrieved 8 November 2013.
  41. ↑ McCarthy, Jamie. "Annual Charity Day Hosted by Cantor Fitzgerald and BGC". Getty Images. Yahoo!. Retrieved 8 November 2013.
  42. ↑ "KIDD TEASES BUT MELO SERIOUS: NO FREE AGENT TALK". Associated Press. Retrieved 8 November 2013.
  43. ↑ "Cantor Fitzgerald gives $10M to victims". Bloomberg News. CRAIN COMMUNICATIONS INC. Retrieved 25 June 2013.
  44. ↑ "Cantor Fitzgerald Relief Fund Donates $10 Million to Sandy Relief". Philanthropy News Digest. Foundation Center. Retrieved 25 June 2013.
  45. ↑ http://www.huffingtonpost.com/2013/01/15/cantor-fitzgerald-911-donation_n_2480753.html
  46. 1 2 3 4 5 6 "MANAGEMENT TEAM". BGC Partners. Retrieved 21 May 2013.
  47. ↑ Mehta, Nina (October 2009). "Aqua Looks to Make Mark in Crossing". Traders Magazine.
  48. 1 2 3 4 5 SEC List of Subsidiaries of BGC Partners, Inc.
  49. ↑ "Company Overview of Aurel BGC SASU". Bloomberg Businessweek. Retrieved 13 May 2013.
  50. ↑ "BGC Partners Finalizes Acquisition of Liquidez". Reuters. 17 June 2009. Retrieved 13 May 2013.
  51. ↑ "BGC Partners Inc (BGCP.O)". Reuters.
  52. ↑ Detrixhe, John (19 August 2010). "BGC Partners Adds More Than 100 Brokers With Purchase of Mint Businesses". Bloomberg. Retrieved 13 May 2013.
  53. ↑ Rusli, Evelyn M. (28 April 2011). "BGC Partners Buys Newmark". The New York Times. Retrieved 13 May 2013.
  54. ↑ Roose, Kevin (21 February 2012). "Grubb & Ellis Files for Bankruptcy and Agrees to Sell Assets to BGC". The New York Times. Retrieved 13 May 2013.
  55. ↑ "Company Overview of BGC Radix Energy L.P.". Bloomberg Businessweek.
  56. ↑ Armstrong, Mike (2 January 2013). "BGC Partners acquires Philadelphia's Smith Mack brokerage". Philadelphia Inquirer. Interstate General Media, LLC. Retrieved 13 May 2013.
  57. ↑ Davidson, Michael (2 January 2013). "BGC Partners acquires Frederick Ross Co.". Boulder County Business Report. Retrieved 13 May 2013.
  58. ↑ Steinert-Threlkeld, Tom (25 February 2013). "FX: BGC Acquires London Currency Broker". Traders Magazine Online. Retrieved 13 May 2013.
  59. ↑ "FSA decides to ban BGC senior executive Anthony Verrier". Financial Services Authority. 16 May 2012.
  60. ↑ Schapiro, Rich (3 May 2012). "Cantor Fitzgerald VP was boss from hell, secretary says in suit". New York Daily News.
  61. ↑ DeCambre, Mark (6 October 2012). "Cantor, Moody's dogfight". New York Post.
  62. ↑ http://www.investopedia.com/terms/b/ba2-bb.asp#axzz2EAswdz45
  63. ↑ Faux, Zeke (4 December 2012). "Cantor Fitzgerald Credit Rating Cut to Near Junk by S&P". Bloomberg.
  64. ↑ Faux, Zeke (8 January 2013). "Cantor May Face Another Ratings Cut as Fitch Cites Slump". Bloomberg.
  65. ↑ Faux, Zeke (10 January 2013). "Cantor Growth Plan Sputters as 41% of Touted Hires Exit". Bloomberg.
  66. ↑ "BGC Partners Sponsor The Masters". World Snooker. January 12, 2012.

External links

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