BGCP - Earnings call transcript Q3 2021

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Operator

Good day, everyone and welcome to the BGC Partners Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. Please be advised, that today's conference is being recorded. At this time, I would now like to turn the conference call over to the Head of your Investor Relations, Jason Chryssicas. go please and you ahead. Thank

Jason Chryssicas

good Thank quarter morning. issued third We financial you results this and XXXX earlier press BGC's presentation morning. release and

can on release XXXX earlier and can presentation. note quarter Unless our ir.bgcpartners.com. of the these with compare investor results additional period. results only stated, provided third quarterly press details year on call You you today's in otherwise find today's at the find Please the

adjusted noncontrolling the total on uses repurchase We EBITDA. unless not today's also accepted earnings equivalents of interest, securities will have our been that an see equity less updated press stockholders' referring define release call be when cash to loaned also today's definitions in We reconciliations adjusted these corresponding capital how, cash as marketable We we as and to basis owned, securities results stated. to for the this for terms. financed, agreements. total any may management our refer press We items partnership accounting and liquidity, results release results see such complete GAAP define of redeemable in reverse generally and relevant otherwise back the which under and securities and agreements and plus and on to terms, refer why subsidiaries. may of non-GAAP Please Please sections principles. interest repurchase

meaningful outlook. are today's effects BGC acquisitions, forward-looking targets pandemic non-GAAP business assume include no Any financial at on our that the the and stock of Additional company's call information risks ir.bgcpartners.com. or results, and forward-looking changes outlook statements. you GAAP extraordinary price. are remind And law, to except statements statements discussed call also company's position, on today's involve information buybacks, also and the call no on available on historical these with to as obligation undertakes respect material update COVID-XX to business forward-looking our about that I by results is and the on website our required any statements not liquidity transactions and uncertainties. Any today's regarding

and SEC For cause but forward-looking BGC's including special to uncertainties, to, not which a and filings in differ additional information risk these statements, limited of any those on from results filings, and see contained note and forth set happy factors discussion actual risks forward-looking the in could Howard am risk note I information forward-looking such Partners. on Board contained to of reports updates subsequent the on XX-Q in CEO Lutnick, factors to Chairman X-K. and of to over that, now until Forms XX-K, call BGC the turn With the Forms

Howard Lutnick

morning quarter Good XXXX us you Jason. joining third all our Thanks, for for call. conference thank and

marketplace, LCH. the our Steve U.S. success UST the me treasury today, along challenge today's Officer, Fenics U.S. the will quo current of announced for a call with clearing our platform, futures of Leveraging and Windeatt. and are futures FMS proven launch agreement solution our with the market. status future of the state-of-the-art Financial Bisgay; BGC's we combined Sean Earlier Officer, Operating Joining our FMX, electronic Chief Chief

the CME. clearing futures Our FMX creation, expect value an for with transaction customers' to than rate announced of proceeds agreement repurchasing On clearing cross IRS trading accelerate units. our closing May, to for in expectation continue believe partners largest executed repurchased world's solution clearance the a FMX the and and to we clearing strategic integrated swaps. in unique We providing that the offer million efficiencies. over and futures LCH business, provides With shares will and will announcing shares created our its for solution leverages the pool XX to resources for respect significant gross provide optimal need at margin of sale response U.S. to more in significant redeemed we and Since $XXX and clearing solution open FMX LCH to million, invest XXXX. Monday, in delivered Fenics margin middle that which growth. FMX the key is trading insurance in cross was futures of our interest we brokerage of

Our I'm to at Fenics ago. a contribution businesses XX% call continue revenues record at to strong higher adjusted productivity BGC's the of to and double-digit earnings over record pace drove provided Steve total turn front-office Bisgay. versus and grow the Fenics improved happy XX.X% revenue services now a during significantly contribution quarter. year approximately financial This

Steven Bisgay

Thank you, Howard and everyone. hello,

from commodities, respectively. with Americas $XXX.X X.X%. XX.X% third As while credit mixed reported by quarter By muted energy ago. by saw rates, and and X.X% by Africa Industry-wide on solid revenues commodities volumes The increased X%, and improvement credit increased XX%, across in X.X%, headcount. and Middle X.X%. million, East trading Credit decreased today's earnings of Beginning equity generated conditions activity challenged total and insurance front cash revenue and XX.X% and of were office X.X%, and last selectively class, spreads year, volatility. with year an tighter we productive revenue derivatives by increase by were equities the Europe, we less energy Asia respectively. geography, By asset XX.X%, and and a release, Pacific decreased BGC FX rates during reduced

towards ago. pretax drive These was year reductions and ago. As to versus increased made compared X.X% higher solutions, year a a productivity technology office adjusted average lower migration earnings up personnel alongside this XX.X% XX.X% which a Fenics result, front were quarter helped

As more we continue of overall business, our profitability increasing. and are automate both productivity to

Moving on to Fenics.

platforms XX.X%. revenue recorded of increase million, had million, an adjusted This by XX.X% XX%. million, of quarter, XX.X%. pretax XX.X% of growing and improvement revenue an Fenics a $XX.X of brokerage Fenics $XX.X net generated $XX.X markets growth earnings generated of of an the million, $XX.X improvement of generated Insurance third revenue revenue Fenics quarter. margin of in

to Now expenses. on moving

higher allocations doubling net compared year due compared to a employee FPUs and increased limited Equity-based and our and XXXX earnings and XXX.X% primarily than weighted more adjusted units volume year compensation under to to quarter average share partnership to Our the revenues expense third income the due to of ago. in period. price of ago benefits GAAP increased compensation

under adjusted earnings to expenses. of and offset other expense, expenses operate. expense selling charges new we and lower COVID-XX to restrictions the were interest by due These parties higher as related noncompensation relaxed geographies many promotion partially decreased primarily reductions X.X%, which Our in across have fees

Moving on to adjusted earnings.

from million, of increase improvement an an point post-tax generated We XXX was and margin pretax $XX.X We million, basis increase basis an a and represents recorded XX.X% X.X%. Our income expansion adjusted year. a margin earnings point expansion. of million, $XX.X of XX.X% XXX of last $XX.X adjusted EBITDA of

share to Turning count.

share share adjusted weighted X.X% fully earnings average by the of due XXX.X diluted third to Our decreased sequentially to count our million XXXX in repurchases. under quarter

held balance period the million the of redeemed XX, ending sale as on repurchased with which September the share September A XXXX. assets our XX.X share to brokerage and presented the quarter. our of of the associated sheet repurchases count As insurance business to XXX.X subsequent reflected a was Since on decrease units. common million third X.X% and sequentially, we during end closed sale, this XXXX, for announcement are sale shares spot Due the the the million for and Class XX, XX.X business which of have XX, May quarter, liabilities

As not are periods. prior balance fully comparable and to line such, sheet equivalents, items, cash cash including

into held million in equivalents within sale. at cash excluded $XX as said, cash and billion, insurance-related example, for $XXX.X of our portion that was there of XXXX, such our $X.XXXX next whereas repaid simpler XX, debt cash and all cash billion. With fully December using liquidity the as million. potential as higher assets million liquidity And equivalents from presented December September $X.XXXX of and the revolver September equivalents that, possible line a XXXX. $XXX.X XX, to Sean. I'm year-end will XXXX, a item Cash committees as corporate was cash over continues call and the are payable turn reviewing BGC's to as of $XXX.X of will happy XXXX explore are liquidity and $XXX and of received advisers of lower conversion. Obviously, included structure. borrowings For insurance-related million $XXX were were and liquidity XXXX. the of $XXX.X with we've proceeds on to The quarter, to Total with hired already and was $XXX.X November Board with other our Notes conversion company XX, X, gross structure compared compared XXXX. million million details and be have versus be our XX, million a compared capital million instead

Sean Windeatt

good everyone. Thanks, and Steve day,

up revenue strong Services and Our net of XX.X% Financial our growth Fenics of from represented total XX.X% businesses revenue, year ago. a XX.X% generated

more in detail. Fenics at Looking

FX, by product revenues and of sevenfold and Fenics market-leading optimization from XX.X% U.S. a growth ADV Fenics Fenics Our Fenics revenue commercial U.S. by offerings Fenics year growth clients. increased driven across platforms new agreements, new Treasuries, Lucera. of treasury ago, driven over growth, onboarding improved GO

third ADV CLOB the XX% over UST the the quarter, from quarter. Fenics over share During XX% Fenics UST outpacing ago market to of market. a growth XX% in overall year had increased third

on U.S. Fenics to Additionally, which repo the platform U.S. launched August, continues scale. treasury in

capture. over have We progress by the have gain which strong recurring a Its quarter. with was new adds bank XXXX XX% significant volatility. improved XX% first NDF with expanding and growth continued to and XXX% electronic and our Fenics infrastructure made highly ultra year-over-year clients revenue environment generated the compounding FX subscription and increased new volumes traction against versus third onboarding XX% and platform, to tempered FX quarter fourth continued new driven institutional the launched quarter of trading CME. challenging growth to quarter existing versus trading XXXX, where double-digit October Lucera, sequentially. the clients fee base. our offering, business software low-latency the by and quarter FX, in into FX relationships over during Winning Lucera's Fenics see first volumes of of improving strong growth volume new revenue clients

Additionally, to Lucera started clients offering access [indiscernible]. has

Howard Lutnick

Windeatt's sound. I think lost Mr. we've

So but was - saying... he

Operator

case opened backup to as well. This is the I've that opened be line - conference the up needs in back line operator.

Howard Lutnick

Well, Steve right? continue Windeatt, on just why Bisgay, get lines. to don't his - can't Mr. All can't hear you I'll his You on so Mr. right? continue Everybody Windeatt, right.

just Lucera, Okay? and business, just - over He was go Steve. our software back infrastructure

Steven Bisgay

highly and and and the relationship and institutional adds revenue to infrastructure clients progress quarter. base. significant business Lucera's onboarding made new software our recurring subscription clients existing bank Lucera, Winning compounding new expanding during

Additionally, with more Lucera Lucera's derivatives equity equities traction and recently compliant leveraging that matching platforms platform options Fenics doubling access these clients U.S. providing credit second online a driven currently cryptocurrency revenue automates and by platform of European integration electronic global its quarter match, into management nearly from the platform, electronic continue and launch XXXX. electronic supports to of MatchBox is trading, session-based to fourth integration than investment-grade the Fenics doubled gain trading electronic are contracts. year Go during platform U.S. lifestyle an Fenics focused Fenics credit MatchBox provide cryptocurrencies, with its U.S. sequentially trading offering, from and Go, match trading European during sessions high-yield expected a exchanges, offering that solution. infrastructure existing quarter. ago, clients investment-grade credit is offering. credit. world-class comprehensive X its credit on Portfolio our started The of global with the solution trade to equity-driven high-yield quarter leading the portfolio fully volumes of deployed clients the connectivity offers our platforms custodians. to workflows. booking

data. spot and with during across driven markets. rates, data recurring foreign activity XXX% improved Fenics traction leading driven compared our a year. strong contracts by by the risk subscription growth its MIDFX the data continued match Asian to XXXX, launch at gain grew versus revenue higher NDF Fenics Since by signed Capitalab's market market NDF for exchange our Fenics to reduction. its new match business, its growth newer last XX% compared revenue. compounding quarter, exposure, NDF Fenics total that Looking in market has clients which year, by to has XX%, advanced by Revenues its last year web-based FX revenue FX its contracted across and and market increasing value a XX.X%, approximately helps volumes to ago. over year. platform throughout has reduce solution driving its share matching third offering, grown post-trade grew XX by highly become double-digit

X.X% voice/hybrid due the of to down million, to continued business from of revenues voice/hybrid last Our revenue. $XXX.X conversion year Fenics generated

U.S. strong across derivatives. market products, strength particular with European X.X% rates. emerging grew business rates derivatives equity inflation Our listed and driven bonds, growth cash XX.X%, by Equity and equities government of and U.S. rates had

of energy reduction renewables. volatility energy saw of we supported to heightened helped also year XX% revenue clean the ago. business growth and facilitation environmental our marketplaces energy as business in renewable environmental complex, across commodities carbon credits of and emissions along This, global the and for the promote Our a growth with of XX.X% and compared drive through

insurance of During quarter, $XX.X generated growing brokerage million, the XX%. our business revenue

this As internal an Howard sale the previously for our business of of XX.X% rate mentioned, on return November of resulting we in closed X, shareholders.

Sean Windeatt

days And now approximately fourth follows. of when to quarter is revenues, for the as back XXXX between X% brokerage, last generate outlook. excluding Steve. million. period of the revenue compared $XXX as the Outlook to compared expect were and higher $XXX.X million fourth the Thanks, to BGC's for $XXX first We, trading quarter XX turning to same insurance total therefore, year. million of

anticipate X% versus to adjusted of the for And brokerage to that, included $XX year we adjusted to tax rate full in million it $XX.X XXXX pretax As Howard. revenues. I'd million in of range be reminder, versus XX% range and the a $XX.X be with turn anticipate XXXX. of to fourth $XXX XXXX year to earnings our back the million full over like We XX.X% quarter to insurance million of

Howard Lutnick

and back Sean said futures, and previously market a FMX the of UST you, buy would insurance number build we Fenics of for sale significant grow We and Steve. our you, our Thank complete model shares. share, thank establish

call, fronts. As on you heard we executing today's on are all

to note. more personal Turning a

or Monday, my every more working in detail remain second I exception am. talking of view November X my the our started things which, can X. me videos my recently supported company treatment at receive is the and website employees you phone I'm this still every to I to And News section and which management and you'd is those non-Hodgkin's the of hung deep to day. schedule over the night, treatment, the you As mining. know. and out I videos just night I running capable third for by work with And expect incredible, team. I When when at picked couple my and was the X:XX morning type ended weeks up if XX:XX the you if doctors - with our same, curable. phone last example, up and know, means sent on I past under lymphoma, in may to treatable In I'm on like highly explain diagnosed tell the YouTube, much which these at

would questions. it With love seems that call I to lot So a open of because, for time spent frankly, I it. that, like operator, the I

Operator

from Repetto [Operator Instructions] question. your question comes Please Our first today from Sandler. with ahead Piper Rich go

Richard Repetto

morning, the John. and We've best been to... a while health. and good Steve on wishes And Howard quite first, and your now this and treatments Yes, Howard hope doing

Howard Lutnick

you, Thank Rich.

Richard Repetto

I be the the could that create guess, and FMX, efficiency time, long - the too. futures that, cash thought said you And you Continue I gotten margin so for cross-margin that the mentioned explain treasuries incumbent. the interest the at the there'd think, a treasuries XX% I say in With clearing of swaps in that they've CME, than and established more remarks prepared close efficiencies than cross test a they've would the efficiencies. CME? XX% think, rate more or LCH And futures to, in - why you

Howard Lutnick

in XX% both, or as and CME best I to the different the says FICC it only LCH can. efficiency. X would LCH high gotten can collateral you - collateral, cash the mean, to When the they XX%. maybe is can and you can they've Whereas If get holds do cross-margin that to XX% will together get you So the that's with well holds only be you below the it in as way clearer expect XX%. XXs come the that you pots. efficiencies, Historically, if margin can and for get do together futures

about without So efficiency the rates. good that to a either it's least can CME when our collateral collateral as clients for start and that's or we platform efficient is on mean expect I cross-margin And more cross time, the hold exciting regard expect worrying And therefore, to basically how doing over it on really, freely as together. U.S. better. the we that that futures, trade platform we at to from or play first play FMX day, and way the a to It margining the well will all out think And last. will on out. the really first FMX the

Richard Repetto

you're the and swaps versus I And But about Okay. between get there. efficiencies And how cash what futures saying to X that's like more where the that, percentage. quick and is and futures? Howard, overall follow-up efficiencies the

Howard Lutnick

changes, euro those dollars for however interest a swaps. and rates, are those So short-term derivative

series that So long call maturity Rich, what get treasury would swaps. X of them on to short-term a futures euro the And normally or lean we swaps. long swaps. would whereas because long-dated is a also treasury rates consider derivative naturally rate then years first put mimic against you right, dollars swap to Those of years is really X as are when of or contract. dated, month That X:X contracts we futures, interest you together dated, that U.S. is or FCC X a interest the a

And math, just well X you do work the they are good those and together. So complements. natural really really if

clearing across they and better. be to walk collateral in, a could Fenics they trade morning futures to want in holding they're big or that will the the the It's a can to they be has the CME as will in be IRS. totally LCH's clearing next And it, the have will they the business a to can't connected dollars competitor bank, stand pieces standing have be really, with will trading the time to of one dollars is they interest with trade, had euro all time with good, who ever And be gigantic treasuries, doing you do see and can't whether not first first to good. I CME the change, be they and on want to and euro people everywhere FMX. trade that - And at indifferent really CME. rates, respect collateral it. with toe-to-toe they trade, the with margin this like as of and efficiency things different at short-term electronic you great that the pool will it So if system better And however will moment means that and efficiency puzzle everybody, the than of they the it think what that UST,

I think our some exciting in to be contender. competition it clients. It They really, exciting really are the And great is I for like just is space. us. the we would think really going for

you, We are contender. the last we said I will that great you within had tell I - in be that share share the week. on going the the would market tell to last XX% CLOB this we day we market touched XX% week, quarter. last

So extraordinary system think it's coming, our treasury is coming. and is FMX I

Richard Repetto

Got it.

I'll you, back Howard. thank queue. the Okay, get in

Operator

[Operator question comes your James. with Raymond go Please from O'Shaughnessy Patrick questions. Instructions] Our ahead next from

Patrick O'Shaughnessy

good Hey, good your morning and fight total looks victory add that think wishes also to and the best for shade Howard, to on I'd you. my I speedy like add and a

Howard Lutnick

Thank you.

Patrick O'Shaughnessy

Question on Fenics.

million it's been revenue Fenics volume-based? is just been of by that the quarters. X revenue, how at Can look because you the of And last late. $XX.X subscription-based I'm remind I'm asking versus we how each as much me of growth steady So it's platforms surprised

Sean Windeatt

described and as I would more far that before, But more at it's on volume-based a is moment little bit different it's the it's - say moment, any But volume-based. become Howard probably given at more think will subscription-based. I the Yes. quarter.

Patrick O'Shaughnessy

post-trade down a X% line? the growth with that revenue, you. why rate growth about revenue Fenics, the I in that's Got second Can seeing external that slowdown and data I'm the talk a quarter in sticking from rate Thank you software we're and the and year-over-year X% the rate third in it. the XX% in first. maybe getting growth And revenue, believe then

Howard Lutnick

really were There Yes. pieces. X

bounce data compression back post Our business a rapid the third quarter slower continues quarter, to in and and at in little that the a our fourth grow pace. market will business trade was the

I to it. runway up So It a the the to business, long, our - is growth data market got even in catch peer has group. long to think, most other a - still

has post-trade both a just I you'll it avenues. we'll lots those bounce I numbers, quarter, it's to we think go now expect. of back the but the see back up the So rates think wrinkle growth And for growth will and next quarter that

Patrick O'Shaughnessy

slide asset Slide quarter there of et it. class, past In to by Fenics you. see rates, you Fenics able cetera. that? the X. on of the allocation ForEx, breakdown your in Thank revenue the credit Got was slide, this overview your Are a quarters, I don't provide that presentation,

Howard Lutnick

we'll Yes. Sure. out, it If wasn't it put go out.

Patrick O'Shaughnessy

able track be to to helpful just It's that. Okay.

I appreciate So that.

roughly brokerage folks so Your quarter. headcount per declining keeps XX or

still You of the actions this eliminate about prepared replacing? positions. productive less spoke taking at some just ongoing taking attrition it remarks that on of kind you you're point, to is Are actions? kind Or not

Sean Windeatt

the overall the platform I what is the revenue is said we in remarks, also from higher. markets key I as from our our and side the have electronic see into per the to usage is prepared why adaptation think But as profitability. of the and that move is mentioned, about usage, head the of brokerage I way you it we in trading uptake - the Fenics it's that think

charge But You manage to this And is see there this brokers. you'll should to restructuring as to of business less see normal what million hiring as did remain what talking our opportunities for our we're well. exactly in quarter, as a also about. linked you we will equally, well take $X.X that on daily business productive expect part our in continue basis a

Patrick O'Shaughnessy

very Got it, thank much. you

Howard Lutnick

a process make going it's efficient. of to and Fenics more us more more natural is But

a important brokers who And more say the to business for more they our are time, less the become do remain Every - and more the once and as be brokers and us efficient business. So more while important. those relationships just efficient, you've more productive They make best with over But heard best business best not us. away just that in they'll automates. we money. fall us important they'll more and the become as with were

So like to work that's going and model. you're we way seeing I think over continue its And just really the it through time.

Patrick O'Shaughnessy

XX% are on that, so up follow basis, reducing annualized brokerage Like they are morale "Hey, that they looking kind the to on folks shoulder how to over as or roughly does turn?" you impact how Is saying, do tapped next your going manage by on I quarter? an there? Or you're my And of do am headcount still it the this the get of who know - like that?

Howard Lutnick

math a thing. It's

no and and the - everybody there's there's there know okay? They are only were know not looking "I brokers, one's So top were shoulder." know did they're that they to supports most and Those staff. there great of the was secrets they it's this how they the best staff their and are There's X X then going production shoulder best it. math, to doing. say, The let's year top And support the they wondering looking over Eventually, brokers, knows X the support - who staff. support - because a productive. them no be brokers about saying, are math broker over just brokers there $XXX,XXX

with guys you for They're brokers. And long that's with on process them are and embracing about, keeping So right, making that automation. they and a money best we time. we've been more our focused a talking are

and area, different they the move productive. a the there's becoming math. world might product, that to in everybody understands not So a math the fear But They they they're of might Everybody right? to no company. knows winning. - it's move know the it's different And less

Patrick O'Shaughnessy

your on What's right. from proceeds sales Thank of All That's the you. your Corant? rate tax helpful. expected

Steven Bisgay

expect low pretty to actually, overall. be We it

without to So do the giving number, deductions a we itself. a believe have taxation of minimize offsets appropriate sale and specific on number we that

rather So expecting we are to low. be

Howard Lutnick

suffer its beneficial. probably the the comparatively amount It's have. that the to with comes for but The - above we complex complexity structure structure, but it's right? company when of tremendously We which these low. still overall kind consistent, It's things, it

money So you buy to enhanced see we we of our have. the - to drive of shares use bottom to to that because is and back back structure amount line the the buy can

Patrick O'Shaughnessy

Got the X me. revenue outlook? last it. fourth revenue I within What from October your for the, X that's month, embedded is Corant And then guess, contribution quarter

Steven Bisgay

It's circa million, circa million. $XX $XX

the you it's $XX science million. exact but circa If think not midpoint it, about

Patrick O'Shaughnessy

you perfect. right, Thank questions. taking my for All

Operator

next from Berman. Please Our questions. with Neuberger comes Eisman from ahead question Steven go your

Steven Eisman

Hi, thank this off, internal? you for want spin early - just idea the I thinking Is to eventually taking understand keep in my you're what is so? what launches just to or this say? to months when X the question. it Or to it too

Howard Lutnick

that, and be company. it And be a think will our off. is to we plan And my spun into that. eventually our guess with players partner think would significant our I Well, do key said we business strategic once I we futures objective to build U.S. rates

Steven Eisman

obviously, frame early. too But on time no that,

Howard Lutnick

open be ship, And got in rocket CME, This for Well, the okay? the if of beginning in XXXX rocket a quicker that that's pieces but is ship things first. in to make delighted I'd it pieces all and to significant the one's be middle the to the of to No market This place. - have we before. ever then is all challenger place is build the share. had

But build going think to in just many We're strategic us. is it. going go We're And with of will value great to to go I execute. exciting get and Eventually our and try go company can't great you CME produce scenario? and likely I tremendous no, a the a to But there from we'll for to a competitor frame. build think And I we're players. with the time it going sure. so build is partnership for this - that

Steven Eisman

you. thank Okay,

Operator

from And our from Repetto Sandler. Rich a next question follow-up is Piper

Richard Repetto

and the FMX, at think are why but partners potential still Howard, join? - Hey, Who ask who you question. and so you've they it and could hit I this on would I'll the

Howard Lutnick

who incoming got talk CNE, from, whom in the clients, and clients. choose from. banks, are people. is Exchanges trading partners use world's we've to going list to people large So be The use firms, the who we're this. from features, that obviously, We exchanges to of not lots would like trading

Richard Repetto

Understood.

Okay. talk this expenses you as the can And incur put expected then you together? about that you'll

Howard Lutnick

numbers. Actually, they're already in our

So for do We waiting now it. building this. to started weren't we

In fact, had part of integrating it it. at we us building why and business already to already - the we LCH it wanted with because hard were do

just couldn't and this get from from That's you months done today practical. X So start scratch launch. not

have for have time You quite and that's numbers. built to in it some our

change. see So think don't materially you I will numbers our

lots we're of hard at it. people. going more of they're employ part We hard lots but We've employed at it our already are to We're numbers. and continue to

Richard Repetto

volatility on And Howard, the rate it. guidance for volatility of of rate me. - rate you could the that I the a you And on about a Got - Steve, in interest rate October. because do the and rates you I talk suspect XQ just, BGCP's sensitivity, guess proxy. But we see sensitivity? general, as at how sensitivity? CME interest used or since last interest in beginning But interest look at lot the X rates

Steven Bisgay

our was at we revolver, point our sensitivity volatility own to that, as pay exposure it's have it been point interest it is fully are set. our I down of this rates. that might fully in LIBOR. as as one But to balance which sheet, relates have down little obligations very than said, our paid but of other indexed now to outstanding Rich, Well, relates The all

Howard Lutnick

as But volatility BGC interest business. rate loves a

more. rates cannot volatility franchise of rates enjoy Our

are rates. rooting volatility in for we So

We rate franchise rates. we have love of and volatility a giant

great So if no to around moves bit. opportunity it and little cost very economically, a

about chat Sean didn't we cryptocurrency. thing X was the mentioned So

be world. to other to work trade opportunity many firms, There's If think able all of seeing think they're so great each eyes many low-latency, our Lucera more are Lucera trading the for using over connects a are many with demand and minute, traders are They the to They so and trade people there? your connect How of want is in them There's real-time, banks, many are now And connect and How so each can tradable rails. us about the of world. them to other just there? with there? decentralized incomings everywhere close we rails. you for Lucera other in with Where fashion are in venues an they everywhere each they? crypto. our and lots and the exchanges are in to world. many the everywhere efficient, are who How lots to exchanges, and from

So I haven't an think of. of people Lucera's is area thought that business that

grow I think business will it of a quickly. serious world. It is around clients a the broad for range

just I lot to endless sea of and us. people it's vast a a of more And it's fun for connect. think

business pointed we and time, to think I much And think. But and for a think Lucera become that's than material so out. significant I quicker over that people going

Operator

today's And any ladies question-and-answer gentlemen, with floor that, over the end and I'd Mr. remarks. closing to session. Lutnick for we'll turn like to back

Howard Lutnick

today. for all joining me Thank you

As and speaking you giving notes learn to all just lymphoma, really, to our it support But look that I please next been an And you want of you forward you the YouTube. on my quarter to go in details to I've if and website, non-Hodgkin's received. or said, about It's more your of I particular I see appreciate update. kind. uplifting can really

Have everyone. a great thanks, So day.

Operator

thank conclude do with and today's we'll conference today's attending that, And We for ladies you presentation. call. gentlemen,

may your disconnect You now lines.

BGC (BGC) 3 Nov 212021 Q3 Earnings call transcript