BGC Voice and Electronic Brokerage

BGC Partners said Monday that it electronically brokered more than 8,500 interest-rate derivatives in the last year, with an estimated value of $825 billion.

The disclosure of “strong performance from the fully electronic trading of interest-rate derivatives “ came as the brokerage for wholesale markets said its net income reached $9.7 million in the second quarter of this year, up 30.6 percent from the $7.4 million recorded in the same period a year earlier. Earnings per share were unchanged, at nine cents.

Revenue reached $364.6 million in the quarter, up from $335.7 million a year earlier.

“BGC's outperformance in the second quarter was driven by our solid top-line growth in equities, foreign exchange, and rates, as well as in overall fully electronic trading,” said Howard W. Lutnick, Chairman and Chief Executive Officer.

Presdient Shaun D. Lynn said the company's revenues related to fully electronic trading grew by 28.4 percent year-over-year, to $40.5 million or 11.1 percent of “distributable earnings revenues.”

These results included continued strong performance from the fully electronic trading of interest rate derivatives., he said.

From August 2010 through the end of June, 2011, BGC brokered more than 8,500 interest rate derivatives transactions electronically, he said, with a notional volume of more than $825 billion.

The company is investing approximately $120 million a year in technology and grew its front office by 10.4 percent in the last year, to 1,780 brokers and salespeople.

“As we continue to expand our e-broking capabilities and increase brokerage staff, we expect BGC's strong earnings growth to continue,'' Lynn said.

Howard Lutnick Comments: BGC Electronically Brokers $825B In Interest Rate Derivatives - Investment Management Weekly

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