BGC Group (BGCP) investor relations material

Business performance and growth

• Achieved 44% year-over-year revenue growth in Q1, reaching $955 million, with most growth from standard market activity and targeted acquisitions.

• First half guidance indicates 22% revenue growth, with 13% organic, despite a quieter April as markets normalized after March volatility.

• Energy and commodities now contribute 30–40% of revenues, up from 15%, following the OTC Global Holdings acquisition.

• Integration of Oil Brokers (OB) from OTC has elevated market position to number one or two globally in key regions.

• Shipping business, led by Poten, provides unique market insights and is targeted for further expansion, potentially via acquisition.

Electronic trading and technology strategy

• Over 25% of business is fully electronic, with most rates, FX, and credit products capable of electronic trading, supporting higher margins.

• ECS business, currently mostly voice, presents a significant opportunity for future electronification as client demand evolves.

• FMX futures platform has recovered from initial volume drops during geopolitical events and is now regaining market share and open interest.

• Cross-margining benefits are expanding, with six FCMs currently offering it and up to 12 expected by Q1 next year, covering over 90% of liquidity.

• Data business is underdeveloped, currently less than 5% of revenues, but seen as a major growth area with potential to reach 15–20% as in other exchanges.

M&A, capital allocation, and future outlook

• Recent acquisitions, including OTC, have shifted focus toward buybacks unless new value-adding opportunities arise.

• Shipping remains a fragmented market and a key area for further investment and consolidation.

• Tokenization and collateral mobility are monitored as potential volume drivers, with preparations in place to benefit if these trends accelerate.

• Non-bank liquidity providers like Citadel are viewed as essential partners, fostering innovation and collaboration.

• Over the next three to five years, expects continued growth in ECS, increased electronification, expanded data monetization, and a shift toward a more integrated, technology-driven market ecosystem.