Financial Data and Key Metrics Changes - The company reported record quarterly revenues of over $664 million, a 15% increase compared to the previous year's first quarter [5] - Adjusted earnings per share improved by 16% to $0.29 per share [17] - Adjusted EBITDA decreased by 4.1% to $199.8 million, but would have increased by 16.3% excluding a prior period mark to market gain [18] Business Line Data and Key Metrics Changes - Rates revenue increased by 14.8% to a record $200.9 million, driven by higher volumes across major interest rate products [8] - ECS revenue grew by 26.6% to a record $149.9 million, supported by strong growth in environmental and energy transition products [9] - Foreign exchange revenues rose by 31% to a record $110 million, reflecting broad-based growth across all FX products [10] - Credit revenues decreased by 0.7% to $86.9 million due to lower emerging market and European credit volumes [10] - Equities revenues remained flat at $62.9 million, with higher European and US equity volumes offset by lower Asian equity derivative volumes [10] - Fenics revenues improved by 15.6% to $172.7 million, with Fenics Markets reporting revenues of $145.5 million, an increase of 14.2% [11] Market Data and Key Metrics Changes - Americas revenues increased by 23.3%, while Europe, Middle East, and Africa revenues rose by 12.2%, and Asia Pacific revenues increased by 2.4% [16] Company Strategy and Development Direction - The acquisition of OTC Global Holdings is expected to add over $400 million in annualized revenue, nearly doubling the size of the existing ECS business, positioning the company as the world's largest ECS broker [6] - The company anticipates that the acquisition will be immediately accretive and generate meaningful shareholder value [6] - The company is focused on integrating OTC into its global platform and expects to see growth in its businesses as market volatility increases [7] Management's Comments on Operating Environment and Future Outlook - Management noted that global market volatility has led to broad organic growth across businesses, benefiting secondary trading volumes [7] - The company expects total revenues for the second quarter of 2025 to be between $715 million and $765 million, representing approximately 34% revenue growth at the midpoint [21] Other Important Information - The company’s liquidity as of March 31 was $1.146 billion, compared to $897.8 million at the end of 2024 [20] - The company plans to increase share repurchases throughout the remainder of the year [20] Q&A Session Summary Question: What drove the delay in the FMX launch? - Management acknowledged that extreme volatility in April created an unsuitable environment for a successful launch but confirmed the launch is scheduled for May [25][26] Question: Updated expectations on the OTC Global Holdings acquisition? - Management indicated that they are pleased with the integration progress and expect revenue growth from cross-selling opportunities, with margins expected to improve over time [30][31][34] Question: Key milestones after treasury futures? - Management outlined a three-year plan focusing on connectivity in year one, increasing volumes in year two, and full competition with CME in year three [39] Question: Cash burn related to FMX futures? - Management clarified that the cash burn to BGC is zero, as the partners are funding future development [40] Question: Clarity on Howard shares divestment? - Management confirmed compliance with Senate Ethics Committee standards and indicated that public SEC filings will be required upon divestment [43] Question: Tax rate expectations going forward? - Management expects the tax rate to be between 10% and 12% for the full year 2025 [46]

Financial Data and Key Metrics Changes - BGC Group reported record fourth quarter and full year revenues, growing by 10.8% to $572.3 million, with full year revenues increasing by 11.2% [7][9] - Pre-tax adjusted earnings grew by 16.9% to $129.5 million, while post-tax adjusted earnings increased by 21.9% to $123.5 million, resulting in a post-tax adjusted earnings per share improvement of 19% to $0.25 [17] - Adjusted EBITDA was $192 million, reflecting a 26.7% improvement [17] - Liquidity as of December 31 was $897.8 million, compared to $701.4 million at the end of 2023 [19] Business Line Data and Key Metrics Changes - Brokerage revenues grew by 11.8% to $516.1 million, with rates revenues increasing by 8.8% to $169.6 million due to higher volumes in interest rate derivatives and U.S. Treasuries [10] - DCS revenues surged by 28% to $134.1 million, driven by strong growth in the Energy Complex and the acquisition of Sage Energy Partners [10] - Foreign exchange revenues rose by 21.3% to $93.6 million, primarily due to higher options and emerging market foreign exchange volumes [10] - Credit revenues decreased by 4.9% to $62.4 million, while equities revenues declined by 3.5% to $56.3 million [11] Market Data and Key Metrics Changes - Americas revenues increased by 17.1%, Asia Pacific revenues rose by 10.2%, and Europe, Middle East, and Africa revenues grew by 6.5% [16] - FMX UST generated average daily volumes of over $52 billion for the fourth quarter, translating to over 30% market share, up from 29% last quarter and 26% a year ago [13] - FMXFX volumes improved by approximately 80% compared to last year, achieving record average daily volumes of more than $11 billion [13] Company Strategy and Development Direction - The company expects to close the acquisition of OTC Holdings around the end of the first quarter, which is anticipated to contribute more than $450 million in annual revenues [8][9] - The management emphasized the importance of electronic trading and strategic acquisitions to enhance shareholder value and market position [6][25] - The company aims to maintain a growth trajectory with a target of approximately 10% revenue growth in the core business [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue strong revenue growth, with trading volumes currently outpacing the record set in Q1 2024 [7][9] - The leadership transition is expected to be smooth, with Howard Lutnick complying with Senate Ethics Committee standards regarding his holdings [23][24] - The company anticipates total revenues for Q1 2025 to be between $610 million and $660 million, representing approximately 10% growth year-over-year [20] Other Important Information - The company reported that Fenix revenues improved by 8.6% to $142.1 million, with growth driven by higher electronic volumes across rates and foreign exchange [12] - The management highlighted the importance of stock-based compensation for retention and growth, indicating no plans to change this approach [41][42] Q&A Session Summary Question: Timeline of executive leadership transition and planned sale of Howard's BGC shares - Howard will comply with Senate Ethics Committee standards, divesting his holdings within 90 days of confirmation, with no expected sales on the open market [23][24] Question: Contribution of Sage acquisition to revenue growth - Sage added between 1% and 2% to the 11.7% growth in Q4, with similar expectations for Q1 2025 [27] Question: Drivers of pretax adjusted earnings margin expansion - The company benefits from a stable cost base that does not grow in line with revenue, leading to improved margins [28] Question: Progress on FMX and U.S. Treasury futures launch - The company remains on track for the launch, expecting to have 10 FCMs connected by the end of Q1 2025 [34] Question: Revenue expectations from OTC acquisition - OTC is expected to generate around $400 million in annual revenues, with initial margins anticipated to be lower than BGC's core business [38] Question: Treatment of stock-based compensation in earnings - The company believes stock-based compensation is crucial for retention and growth, with no plans to change this practice [41][42]