Financial Data and Key Metrics Changes - The company reported record third quarter revenues of $737 million, a 31% increase from $561 million a year ago [4] - Adjusted earnings grew by 22.4% to $155.1 million, with post-tax adjusted earnings increasing by 11.5% to $141.1 million, resulting in post-tax adjusted earnings per share of $0.29 [12] - Adjusted EBITDA increased by 10.7% to $167.6 million [12] Business Line Data and Key Metrics Changes - ECS revenues grew by 114% to $241.6 million, driven by OTC and strong organic growth [6] - Rates revenues increased by 12.1% to $195.3 million, reflecting higher volumes across major interest rate products [7] - Foreign exchange revenues were up 15.9% to $106.7 million, primarily due to strong growth in emerging market currencies [7] - Credit revenues increased by 1.6% to $69.1 million, driven by higher credit derivative and structured credit volumes [7] - Equities revenues grew by 13.2% to $60.4 million, reflecting strong European and U.S. equity volumes [7] - Data, network, and post-trade revenues grew by 11.9% to $34.3 million, excluding Capital Lab [8] Market Data and Key Metrics Changes - EMEA revenues increased by 37.4%, Americas revenues increased by 28.1%, and Asia-Pacific revenues increased by 17.4% [11] - The U.S. Treasury market share grew to an all-time high of 37%, significantly outpacing the market [5] - FMX UST generated record third quarter average daily volume of $59.4 billion, more than 12% higher compared to last year [9] Company Strategy and Development Direction - The company is focused on enhancing profitability and margins through a $25 million cost reduction program, expected to be completed by year-end [5] - The company aims to continue growing SOFR ADV and open interest, with expectations for similar adoption in U.S. Treasury Futures offerings in 2026 [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong growth in a mixed macro environment, highlighting the strength and scale of its global platform [4] - The company anticipates generating revenues of between $720 million and $770 million in the fourth quarter of 2025, representing approximately 30% revenue growth at the midpoint [13] Other Important Information - The company’s liquidity was reported at $924.7 million as of September 30, compared to $897.8 million at year-end 2024 [12] - The board reapproved a share repurchase authorization for up to $400 million [12] Q&A Session Summary Question: What allowed BGC to outperform some of the industry proxies despite a slowdown in on-exchange volumes? - Management attributed the strong performance to targeted growth within the ECS sector and the hiring of around 150 new brokers, which enabled market share gains [16] Question: Can you elaborate on the strong growth in FMX and expectations for FCM onboardings? - Management noted that FMX has successfully onboarded 11 FCMs and achieved significant growth in SOFR futures ADV and open interest, with expectations for continued growth in U.S. Treasuries [18][20] Question: What contributed to the strong share growth in FMX cash markets? - Management indicated that the growth was due to the hard work over several years and the viability of FMX as a second choice in the market, leading to a market share increase to 37% [23] Question: How much leverage does the energy segment have to higher adoption of cloud and AI? - Management acknowledged involvement in energy procurement for data centers, benefiting from relationships established through Newmark [25] Question: Can electronic credit revenues grow at a similar pace as Tradeweb or MarketAxess? - Management expressed confidence that electronic credit revenues can grow at competitive rates, with ongoing launches of new electronic protocols [27]

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]