BGC Partners Experiences Yearly Growth in Revenues Across All Asset Classes for Q3 2023

BGC Partners, Inc. (BGC Partners), a leading global brokerage and financial technology company, has released its financial results for the quarter ended September 30, 2023 (Q3 2023), seeing an overall increase across all asset classes on a year-on-year (YoY) basis.

Revenue totaled $482.7 million for the quarter, up 15.9% from $416.6 million in Q3 2022. Brokerage revenues were $435.0 million, 14.8% higher than $379.0 million in the year ago quarter. Revenue of data, network, and post-trade rose by 16.8% from $23.8 million to $27.8 million on a YoY basis. Interest and dividend income, fees from related parties and other revenues came in at $19.9 million, an increase of 44.4% compared to $13.8 million in Q3 of last year.

More specifically, rates revenue accounted for the most in the total revenue, up 12.1% from $130.0 million in Q3 2022 to $145.7 million. Compared to the same period of last year, FX revenue rose by 8.6% from $73.5 million to $79.8 million; credit revenue rose by 9.6% from $58.2 million to $63.7 million; energy and commodities revenue rose by 35.0% from $69.0 million to $$93.1 million; equities revenue rose by 8.8% from $48.4 million to $52.7 million.

Fenics revenue increased by 18.7% from $105.6 million in Q3 2022 to $125.4 million, driven by the growth in electronic Rates and Credit products, as well as data, network and post-trade businesses.

Adjusted EBITDA amounted to $135.9 million for the period, up 27.0% compared to $107.0 million in the third quarter of 2022.

Post-tax adjusted earnings were $94.1 million, increasing 21.4% compared to $77.5 million in Q3 2022. Post-tax adjusted earnings per share was $0.19, increasing 18.8% compared to $0.16 per share in Q3 of last year.

Howard W. Lutnick, Chairman and CEO of BGC Group, commented: "We had another outstanding quarter, generating revenue growth of 16%, reflecting increased volumes across all of our asset classes. BGC is extraordinarily well positioned to benefit from the return of interest rates, which we expect to drive our trading volumes, revenue and profitability higher for the foreseeable future.

"Fenics revenue improved by 19%, outperforming both its electronic trading platform and exchange peers. This was led by another record quarter for Fenics Growth Platforms, which grew by over 45%. Fenics UST, our electronic U.S. Treasury platform, reached a record 25% market share of the volume traded on U.S. Treasury exchange marketplaces during the year."