BGC Group has reported a strong third quarter, highlighted by a 16% year-over-year revenue increase to $561 million, driven by robust performance across all asset classes and regions. Additionally, pre-tax adjusted earnings rose by over 24%, reflecting the company’s focus on expanding both traditional and emerging markets.
Strong Performance Across All Divisions
A significant contributor to BGC’s growth was its Fenics division, which posted a 13.3% increase in revenue, reaching $142.1 million. Fenics Growth Platforms, including FMX and PortfolioMatch, showed substantial gains as the company further strengthened its position in electronic trading.
BGC has also completed its acquisition of Sage Energy Partners and is in the final stages of acquiring OTC Global Holdings, with both deals expected to add over $450 million annually in revenue. This strategic move aligns with BGC’s shift toward the energy and commodities markets, positioning the company for growth in high-demand sectors. The integration of these acquisitions is anticipated by the end of Q1 2025.
Record-Breaking Activity on FMX Platform
The FMX platform reported record daily trading volumes, particularly in U.S. Treasury and FX markets. FMX’s average daily volume in U.S. Treasury trading reached $53 billion, marking a 40% year-over-year increase, while FX trading volumes rose by over 38%, surpassing $9 billion.
Regional Revenue Expansion
Revenue growth was broad-based, with notable increases in the Americas, EMEA, and APAC regions, up by 19%, 16.5%, and 8.3%, respectively. Key areas such as rates, environmental and commodities solutions (ECS), and foreign exchange showed double-digit gains, demonstrating BGC’s successful expansion across asset classes.
- The rates segment led with a 19.6% increase, fueled by higher trading volumes.
- ECS revenue grew by 21.3%, boosted by BGC’s expanded offerings in energy and environmental solutions.
- FX revenues increased by 15.4%, driven by demand in emerging markets and G10 options.
- Equities posted modest growth of 1.3%, with demand in U.S. and European derivatives balancing softer Asian markets.
In its data and network business, BGC’s subscription-based services, including its Lucera division, saw a 34% revenue increase, indicating high demand for trading infrastructure.
Financial Strength and Shareholder Returns
BGC’s total adjusted EBITDA rose by 11.4% for the quarter, underscoring its solid financial foundation and commitment to reinvesting in growth. The company announced a quarterly dividend of $0.02 per share, payable to shareholders on December 4, 2024.
With a continued focus on high-growth sectors and strategic acquisitions, BGC Group is well-positioned to capitalize on new opportunities within the energy and commodities markets.
