BGC Group (BGCP) investor relations material

Strategy and market position

• Multi-asset marketplace spans U.S. Treasuries, inflation, repo, spot FX/NDFs and U.S. interest rate futures, aiming to increase competition and reduce single-venue dependence.

• Ten banks and market makers invested $172M in April 2024 at a $667M post-money valuation for a 26% stake, plus 10% subject to volume targets.

• Strategy applies the cash Treasury playbook: client-led product development, tighter pricing, technology and service rather than competing as a like-for-like venue.

• Year 3 futures plan (Q4 2026–Q3 2027) emphasizes buy-side adoption, cash-futures basis trading and capital efficiency through LCH clearing.

Operating progress

• U.S. Treasuries ADV reached $84B YTD Sep 2026, up 35% YoY; CLOB share hit 42%, with 150+ connected clients, despite lacking access to an estimated 25%-30% of the market.

• FX ADV reached $19B YTD Sep 2026, up 33% YoY; share versus Cboe FX Hotspot and Euronext FX was 16%, with 70+ connected clients.

• Futures ADV hit a monthly record of 112K contracts in Sep 2026 and 162K on Oct. 2; SOFR prices equaled or beat CME 82% of the time in Q3 2026, and Treasury futures did so 68% of the time.

• Inflation CLOB reached 35% of its market in under 18 months; overnight repo is live, with term repo electronification in development.

• Market data revenue is expected to reach $7M in 2026E; initiatives include scaling with futures volume, Fenics Market Data cross-selling and analytics products.

Futures adoption and client connectivity

• Twelve FCMs were connected, covering 80% of customer cleared swap funds; management expects 70% of bank partners to be ready to provide margining in Q1 next year.

• Lou Scotto expects 40 buy-side clients trading and 15 onboarding during the year, with another 15-20 expected by mid-next year.

• Hedge funds are expected to lead near-term adoption; asset managers may follow as OMS connectivity is completed over the next 6-12 months.

• Clients using API/algo execution trade 10x the contracts of clients still implementing it; material connectivity work is expected to finish within three months.

• Management cited product competitiveness, not additional strategic investors, as the adoption driver; onboarded clients taking market data were expected to begin trading before quarter-end.