Platforms · Software · Providers · Markets
BGC Group said Thursday that third-quarter net income for fully diluted shares reached $68.7 million, compared with $26.8 million in the same period a year earlier. The result included a $35.0 million gain from selling Water Street Labs and CX Clearinghouse to Fanatics. Revenue for the quarter ending September 30 climbed 13.0% to $832.6 million, which the company described as its highest third-quarter total.
Foreign exchange brokerage revenue increased 13.9% to $121.5 million. FMX FX, BGC's electronic currency venue, recorded a 43% rise in average daily trading to $18.7 billion. The company attributed the increase to spot FX and non-deliverable forwards, and linked broader FX revenue growth to emerging markets, G10 forwards and Macro Hive.
Energy, commodities and shipping remained the group's largest business after its expansion through the purchase of OTC Global Holdings. Revenue there grew 18.8% to $287.1 million, roughly a third of group revenue.
JP Aubin will leave the co-chief executive role at year-end to become vice chairman. BGC said earlier this week that John Abularrage and Sean Windeatt will remain co-CEOs.
Trading and earnings figures
| Measure | Reported figure |
|---|---|
| Net income and sale gain | $68.7 million, against $26.8 million; the Fanatics sale added $35.0 million |
| Revenue and FX brokerage | Revenue rose 13.0% to $832.6 million; FX brokerage grew 13.9% to $121.5 million |
| FMX FX activity | Daily average rose 43% to $18.7 billion |
| Venue comparisons | Cboe FX averaged $56.8 billion a day in July to September, up 21.4%; Euronext FX averaged $30.3 billion, up 26.1%; 360T recorded $40.1 billion a day |
| FMX and US Treasuries | FMX revenue increased more than 35% to $30.5 million. Treasury cash activity averaged $83.0 billion a day, up 40%; its central limit order book share moved to 42% from 37% |
| FMX Futures Exchange | More than 80,000 contracts a day, nearly seven times the year-earlier level; September averaged 112,000 after the full Treasury futures curve was listed in August |
| Fenics and growth platforms | Fenics revenue grew 13.3% to $181.3 million; growth platforms rose 39.8% to $36.2 million, compared with 22.9% in the second quarter |
| Other brokerage lines | Interest rates: $219.6 million, up 12.4%; equities: $77.3 million, up 28.0%; credit: $67.4 million, down 2.5% |
| Adjusted earnings and expenses | Pre-tax adjusted earnings rose 20.9% to $187.5 million; GAAP expenses increased 11.0% to $783.5 million |
| Fourth-quarter outlook | Revenue forecast at $805 million to $865 million, compared with $756.4 million a year earlier; adjusted pre-tax earnings forecast at $178 million to $196 million |
| Liquidity and dividend | Liquidity was $917.3 million at September 30. The $0.02 per share quarterly dividend is payable on December 9 to shareholders of record on November 25 |
Management ties gains to activity
Comparisons with other electronic FX venues, based on their published figures, were compiled by Finance Magnates. FMX FX remained the smallest of the compared platforms, although its quarterly growth rate was the highest. Cboe FX's average was about three times FMX FX's, while its growth was around half as fast.
BGC said its technology investments included its first fully AI-brokered institutional trade and the Fanatics prediction-markets partnership. The company also reported that FMX's Treasury cash share rose, citing Coalition Greenwich data.
The FMX Futures Exchange has Commodity Futures Trading Commission (CFTC) approval for Treasury and SOFR futures. BGC excluded the Fanatics gain from adjusted earnings. The cost-reduction programme generated $9.9 million in charges. Separately, BGC recorded a non-cash $22.6 million impairment against long-lived assets.
What this changes for operators
The reported growth spans electronic FX, Treasury cash and futures, but the results do not describe any platform migration or change to connectivity. Operators assessing exposure to BGC venues should check whether their existing market-data, order-routing and post-trade processes cover FMX FX and the FMX Futures Exchange. What interfaces and product mappings are required, and how are fills reconciled across those venues?
The company did not give implementation costs, latency figures or operational details for its AI-brokered trade. Teams evaluating the reported activity should ask what execution workflow was used, what controls govern it and what data is available for monitoring. The Fanatics disposal also raises an operational question for counterparties: which reporting or processing arrangements, if any, change when Water Street Labs and CX Clearinghouse move to a new owner?
