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BGC Partners

bgcp · NASDAQ Financial Services
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Ticker bgcp
Exchange NASDAQ
Sector Financial Services
Industry Financial - Capital Markets
Employees 1001-5000
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FY2022 Annual Report · BGC Partners
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2022

ANNUAL REPORT

“ AT THE END OF THE YEAR, 
WE SAW BROAD-BASED 
IMPROVEMENT ACROSS ALL OF 
OUR BUSINESSES. WE’VE SEEN 
THIS GROWTH ACCELERATE IN 
2023 WITH HIGHER REVENUES 
ACROSS EACH OF OUR ASSET 
CLASSES THROUGH THE FIRST 
HALF OF THE YEAR.” 

HOWARD W. LUTNICK
Chairman of the Board and Chief Executive Officer
BGC Group, Inc.

Note:  BGC  completed  its  conversion  to  a  Full  C-Corporation,  effective  at  12:02  am  Eastern  Time  on  July  1,  2023  (the 
“Corporate Conversion”), which included  changing our name from BGC Partners, Inc (“BGC Partners”) to BGC Group, Inc. 
(“BGC  Group”),  and  our  ticker  symbol  to  “BGC.”  Our  new  structure  is  aimed  at  attracting  a  broader  and  more  diversified 
investor base, which we believe will deliver significant value to our shareholders.

This Annual Report includes the results of BGC Partners as of and for the full years ended 2022 and 2021, and information 
regarding the Corporate Conversion. Except as otherwise indicated or the context otherwise requires, as used herein, the 
terms the “Company,” “BGC,” “we,” “our,” and “us” refer to: (i) following the closing of the Corporate Conversion, BGC Group 
and  its  consolidated  subsidiaries,  including  BGC  Partners;  and  (ii)  prior  to  the  closing  of  the  Corporate  Conversion,  BGC 
Partners and its consolidated subsidiaries.

BGC Group Annual Report 2022

01

BGC GROUP, INC. SELECTED 
CONSOLIDATED FINANCIAL DATA1
(in USD 000s except per share data)

Revenues 

Rates

Foreign exchange

Credit

Energy and commodities

Equities 

Data, software, and post-trade

Other2

2022

2021

 $549,503 

 $558,507 

 299,721 

 301,328 

 271,419 

 287,608 

 291,665 

 296,458 

 234,493 

 247,673 

% 
Change
  (2)%

 (1)%

 (6)%

 (2)%

 (5)%

 7%

 96,389 

 52,112 

 89,963 

 55,492 

 (6)%

Total Revenues (excluding Insurance)

 $1,795,302 

 $1,837,029 

(2)%

Insurance

Total Revenues

GAAP Earnings  

–

178,335 

(100)%

 $1,795,302 

 $2,015,364 

(11)%

Income (loss) from operations before income taxes

Net income (loss) for fully diluted shares

 $97,451 

 $176,501 

 (45)% 

63,479

 173,995

 (64)%

Adjusted Earnings  

Adjusted earnings before non-controlling interest in subsidiaries and taxes

Post-tax adjusted earnings

Per Share Data   

Post-tax adjusted earnings per share

GAAP fully diluted earnings (loss) per share

Adjusted EBITDA   

Adjusted EBITDA

Balance Sheet   

Liquidity

Notes payable and other borrowings
Total capital3

 $373,115

 $376,953

 343,841

 350,408

 (1)% 

 (2)%

 $0.69

 $0.13

 $0.65

 $0.32

 6% 

 (59)%

 $486,176

 $588,342

 (17)%

 $524,308

 $594,842

 (12)% 

 1,049,217

 1,052,831

 748,727

 682,076

 (0)%

 10%

1 This Annual Report includes the results of BGC Partners as of and for the full years ended 2022 and 2021, and information regarding the Corporate Conversion. Except as otherwise 
indicated or the context otherwise requires, as used herein, the terms the “Company,” “BGC,” “we,” “our,” and “us” refer to: (i) following the closing of the Corporate Conversion, BGC Group 
and its consolidated subsidiaries, including BGC Partners; and (ii) prior to the closing of the Corporate Conversion, BGC Partners and its consolidated subsidiaries.
2 Other includes fees from related parties, interest and dividend income, not related to Insurance, and other revenues.
3  Defined as redeemable partnership interest, stockholders’ equity, and non-controlling interest in subsidiaries
  Note: Certain numbers and percentage changes may not sum due to rounding.

02

FY 2022 REVENUES 
BY ASSET CLASS

8%

Data, software and  
post-trade, and other2

13%

Equities

15%

Credit

16%

Energy and 
commodities

17%

Foreign 
exchange

31%

Rates

2022

BGC Group Annual Report 2022

REVENUE GROWTH
(USD millions) 

449

319

261

209

101

2014
2014

2016
2016

2018
2018

2020
2020

2022
2022

19%
CAGR

78

2012
2012

04

1  Excludes Insurance Brokerage revenue and historical Newmark Group, Inc. revenue prior to 2018 spin-off.

PERCENTAGE OF 
TOTAL REVENUE1

25%

17 %

13%

14%

9%

6%

2012

2014

2016

2018

2020

2022

BGC Group Annual Report 2022

FY 2022 REVENUES BY 
GEOGRAPHY

15%

Asia Pacific

34%

Americas

51%

EMEA

2022

06

BGC 

  G R O U P,   I N C .

BGC Group Annual Report 2022

2022

TO MY FELLOW

S
T
O
C
K
H
O
L
D
E
R
S

2022: THE BEGINNING OF A NEW GROWTH STORY
The end of 2022 marked the beginning of a new chapter of growth at 
BGC. Following 14 years of manufactured, near-zero percent interest rates, 
we saw strong growth return to our business. 

Since the beginning of the Global Financial Crisis, the historic relationship 
between gross issuance and average daily trading volume (“ADV”) broke 
down. Historically, we would have expected that ADV of U.S. government 
coupon securities would equal approximately 60 percent of annual gross 
issuance. With record levels of issuance, ADV should have reached new 
highs. However, near-zero interest rates and quantitative easing significantly 
reduced volatility and trading volumes. This resulted in our revenues and 
issuance becoming uncorrelated.

For example, in U.S. government coupon securities, gross issuance 
increased by approximately five times since 2008, yet ADV remained flat. In 
U.S. credit markets, we saw corporate debt issuance grow nearly three 
times, while ADV halved.1 These macro challenges resulted in constrained 
growth across the wholesale capital markets. 

During this challenging trading environment we had to manage our business 
to deliver shareholder value through a number of value-expressing, catalyst 
transactions. A few examples include:  

 ▪

In 2013, we sold our eSpeed business to Nasdaq for more than $1.2 
billion, which represented the entire market capitalization of BGC at 
the time.2 We used the sale proceeds to grow Newmark, our 
commercial real estate business – an asset class that performs best in a 
low-interest rate environment. This more than offset lower growth in 
other parts of our business. We grew Newmark’s revenue to more 
than $2 billion at the time when the company was spun-off to BGC 
shareholders in a tax-free transaction in 2018.

 ▪

In 2015, we announced our acquisition of GFI Group, 
Inc. (“GFI”), a publicly listed interdealer broker. We 
acquired the company for $750 million3 and 
immediately sold a single asset, Trayport, to the 
Intercontinental Exchange (“ICE”) for approximately 
$650 million. This resulted in us acquiring $670 million 
of revenue, along with $100 million of synergistic cost 
savings, all for a net effective purchase price of 
approximately $100 million. This was an extraordinarily 
profitable transaction for our shareholders.4  

 ▪ Most recently, in 2021 we sold our Insurance 

Brokerage business, which had generated $190 million 
of revenue in the twelve months prior to the 
announcement. This transaction brought in 
approximately $535 million of gross proceeds5 and 
allowed us to repurchase over 10 percent of the 
outstanding fully diluted shares of the Company that 
year.      

These corporate actions were undertaken to deliver 
shareholder value in the face of a deeply challenging macro 
environment. This is reflected in our significant 
outperformance, compared with our peer group, over this 
time frame.6

Beginning in December 2022, the wholesale financial 
markets fundamentally changed and BGC’s revenue has 
grown in every month since. We expect this growth to 
continue for the foreseeable future, leading to significantly 
higher profitability.  

We are now operating in a new normal, where the 
wholesale capital markets are growing again, providing 
tailwinds to our core business. While we continue to 
explore value-maximizing, catalyst transactions, we can 
also expect the strong growth of our core business to 
deliver tremendous value.   

FENICS’ INDUSTRY-LEADING GROWTH AND 
FMX OPPORTUNITY
Fenics, our high-margin, technology-driven business, had 
another outstanding year. Revenues grew by 
approximately 17 percent in constant currency to nearly 
$450 million. Fenics continued to outperform its electronic 
trading peer group and it represented over 25 percent of 
our total revenue in 2022. As Fenics has grown to 
become a larger part of our overall business, we have 
seen a continual improvement in our Adjusted Earnings 
margins and average revenue per front-office employee.

Fenics UST
Our Fenics UST platform set new records in 2022, ending 
the year with 21 percent central limit order book market 
share. Our position has continued to improve, growing to 
25 percent in June 2023.7 These gains have primarily been 
at the expense of the largest cash U.S. Treasury platform, 
BrokerTec, which is owned by the CME. 

Since we launched Fenics UST in 2018, we have grown 
significantly faster than the overall market and all other 
electronic Treasury platforms. We revolutionized the 

BGC Group Annual Report 2022

9

trading of U.S. Treasuries by offering the tightest spreads 
in the market, which has led to an estimated $400 million 
in client cost savings.8 Fenics UST’s success has led to yet 
another exciting opportunity: Fenics Markets Xchange 
(“FMX”).

FMX
U.S. interest rate futures are the most widely traded 
futures contracts in the world, representing an enormous 
opportunity. FMX combines our leading Fenics UST and 
Fenics FX platforms with our soon to be launched U.S. 
Interest Rate Futures exchange. We will compete directly 
with the CME across these products. The CME dominates 
the market for U.S. interest rate futures, which supports 
its more than $70 billion market capitalization at the time 
of writing this letter.9 

In launching U.S. interest rate futures, we will utilize the 
same blueprint that built our Fenics UST market share to 
25 percent today. We will offer superior technology, highly 
efficient clearing, and strategic partnerships. FMX’s trading 
system has been natively developed to trade both 
treasuries and futures on the same platform, which offers 
seamless execution at much faster speeds. We have 
partnered with the LCH, the world’s largest holder of 
interest rate swap collateral, to provide the most efficient 
cross-margin clearing solution in the market. And lastly, we 
expect our strategic partners, which include the world’s 
largest banks and market makers, to drive fundamental 
liquidity to FMX. We are looking forward to announcing 
the details of our FMX strategic partnerships in the fourth 
quarter of 2023.

COMPLETED CORPORATE CONVERSION, 
NEW COMPANY NAME, AND TICKER 
SYMBOL  
We completed our conversion to a Full C-Corporation on 
July 1, 2023, which included changing our name to the 
BGC Group, Inc., and our ticker symbol to “BGC”. Our 
new structure is aimed at attracting a broader, more 
diversified investor base, which we believe will deliver 
significant value to our shareholders. 

As a result of our conversion, we converted all former 
partnership units into restricted stock and restricted stock 
units. This conversion and redemption resulted in a 
reduction of our fully diluted weighted-average share 
count by 21 million shares, or four percent. 

I’m incredibly proud of all our employees who worked 
tirelessly to complete this conversion. 

LOOKING AHEAD  
At the end of the year, we saw broad-based improvement 
across all of our businesses. We’ve seen this growth 
accelerate in 2023 with higher revenues across each of our 
asset classes through the first half of the year. In addition 
to strong underlying growth, we anticipate several aspects 
of our business to play a pivotal role in delivering near-
term shareholder value. A few of these include: 

Fenics’ Value
Within Fenics, we’ve developed some of the most valuable 
fintech assets across the capital markets. These platforms 
have consistently outperformed and grown their market 

share. Our job is to unlock the value of these assets, which 
we aim to initially accomplish with FMX. We also have 
many other standalone, fully electronic platforms that are 
separable from our core business. We’ve historically sold 
fintech assets for revenue multiples, competitive with the 
best public fintech assets in the world, implying significant 
value for our Fenics businesses, which generated revenues 
of nearly $450 million last year.

The Americas
We’ve continued to expand our global market share, with 
a particular focus on the Americas. We have been 
undersized in this geography since the tragic events of 
September 11th. We are actively investing in this region, 
including adding a new Executive Managing Director, Head 
of the Americas, who has been instrumental in our recent 
market share gains. In 2021, BGC’s Americas’ revenue 
represented 31 percent of total revenue.10 We have grown 
Americas’ revenue to 38 percent through the first half of 
2023. The U.S. has the largest, most liquid capital markets 
in the world and represents an incredible growth 
opportunity for BGC. Ultimately, we expect the Americas’ 
revenue to equal our EMEA region, which is currently our 
largest center. 

Environmental and Cleaner Energy 
Products Driving Growth                
Energy & Commodities continues to become a larger part 
of BGC’s overall business, growing to over $330 million in 
revenue over the last twelve-months ended June 30, 2023. 
Our Energy & Commodities business is primarily focused 

on environmental products and cleaner energy transition 
products, such as natural gas, LNG, and LPG. We are also 
the leading ship broker for these products, where we 
continue to see incredible demand. As the global 
transition towards environmental and cleaner energy 
products continues to accelerate, our business is well 
positioned for sustained, long-term growth.   

BGC Group Annual Report 2022

11

IN CONCLUSION 
We are well positioned to capitalize on the growth that 
has returned to our markets. BGC is responsible for a 
significant amount of the world’s total trading volumes. 
This global breadth and scale is a key differentiator. We 
have built some of the most sophisticated trading 
platforms on the planet, which continue to outperform 
our peers. We are, and expect to remain, a growth 
company for the foreseeable future, with increasing 
revenues producing significantly higher profits.

Sincerely,

It is both a privilege and an honor to lead this remarkable 
organization through such exciting times. My deepest 
gratitude extends to our committed investors, esteemed 
clients, and dedicated employees. My management team 
and I remain steadfast in our devotion to continued 
success. Thank you all for your enduring support.

HOWARD W. LUTNICK 
Chairman of the Board and 
Chief Executive Officer 

  
1 Sources: Bloomberg and SIFMA; U.S. Treasuries statistics are based on primary dealer average daily volume for U.S. Government Coupon Securities from Bloomberg and Gross Issuance for U.S. Treasury Notes 
and Bonds from SIFMA. U.S. Corporate Bonds statistics are based on primary dealer average daily volume for U.S. Corporate Securities from Bloomberg and Issuance for U.S. Corporate Nonconvertible bonds 
from SIFMA.

2 Included $750 million of cash consideration plus an earn-out of 550 million of Nasdaq common stock as of July 1, 2013. For additional information, see press release titled “BGC Announces Close of Sale of its 
Platform for the Fully Electronic Trading of Benchmark, on-the-Run U.S. Treasuries to NASDAQ OMX” dated July 1, 2013, and the related filing on Form 8-K filed on the same day.

3 Excludes a $29.0 million gain under U.S. GAAP with respect to the appreciation of 17.1 million shares of GFI held by BGC prior to the successful completion of the tender offer. 

4  See  press  release  titled  “BGC  and  GFI  Complete  Sale  of  Trayport  to  Intercontinental  Exchange”  dated  December  11,  2015,  and  the  related  filing  on  Form  8-K  filed  on  December  14,  2015,  for  further 
information.

5 On November 1, 2021, BGC closed the sale of its Insurance business to The Ardonagh Group receiving approximately $535 million in gross proceeds, subject to limited post-closing adjustments. For additional 
information, please see press release titled “BGC Completes Sale of Insurance Brokerage Business to The Ardonagh Group” dated November 1, 2021.

6 BGC Group’s interdealer broker peer group includes TP ICAP and Tradition.

7 Source: Company filings and Greenwich Associates; Central limit order book (“CLOB”) market share is from Coalition Greenwich. From Q3 2021 onward, Coalition Greenwich updated its methodology for cal-
culating CLOB market share to more accurately reflect CLOB-only trading volumes.

8 BGC internal estimates based on savings per tick (1/16 of 1/32 = $19.53125) adjusted for tenor multiplied by the quantity of the trade (single counted).

9 Source: CME Group Results FY 2022, Bloomberg, Greenwich Associates, and BGC internal estimates. Rates includes interest rates clearing and transaction fees and BrokerTec fixed income. Market cap as of 
September 1, 2023.

10 Excluding insurance.

Note: U.S. Generally Accepted Accounting Principles is referred to as “GAAP”. This document contains non-GAAP financial measures that differ from the most directly comparable measures calculated and 
presented  in  accordance  with GAAP.  “GAAP  income before income  taxes  and noncontrolling  interests” and “Adjusted Earnings before noncontrolling interests and taxes” may be used interchangeably with 
“GAAP pre-tax income” and “pre-tax Adjusted Earnings”, respectively. See the sections of this document including “Timing of Outlook for Certain GAAP and Non-GAAP Items”, “Non-GAAP Financial Measures”, 
“Adjusted Earnings Defined”, “Reconciliation of GAAP Income (Loss) from Operations before Income Taxes to Adjusted Earnings and GAAP Fully Diluted EPS to Post-Tax Adjusted EPS”, “Fully Diluted Weighted-
Average Share Count under GAAP and for Adjusted Earnings”, “Adjusted EBITDA Defined”, “Reconciliation of GAAP Net Income (Loss) Available to Common Stockholders to Adjusted EBITDA”, and “Liquidity 
Analysis”, including any footnotes to these sections, for the complete and updated definitions of these non-GAAP terms and how, when, and why management uses them, as well as for the differences between 
results under GAAP and non-GAAP for the periods discussed herein

Note: This letter was finalized on September 26, 2023. Any forward-looking statements made in this document are only as of this date, unless otherwise stated. Please see the section in the enclosed Form 10-K 
titled “Special Note on Forward-Looking Information.”

BGC Group Annual Report 2022

13

CHARITY
DAY 2022

CHARITY DAY IS OUR WAY OF HONORING 

THE 658 CANTOR AND 61 EUROBROKERS 

COLLEAGUES AND FRIENDS WHO PERISHED 

IN THE WORLD TRADE CENTER ATTACKS 

ON SEPTEMBER 11, 2001. EACH YEAR, BGC, 

CANTOR FITZGERALD, AND GFI DONATE 100% 

OF THE GLOBAL REVENUES GENERATED ON 

CHARITY DAY TO THE CANTOR FITZGERALD 

RELIEF FUND (“RELIEF FUND”) AND TO OTHER 

ORGANIZATIONS IN NEED OF OUR HELP 

AROUND THE GLOBE.

9.11.2001. 
NEVER FORGET. GIVE BACK.

Common

Mark Messier

Camille
Kostek

Rob
Gronkowski 

Regina Hall

To make a donation to The Cantor Fitzgerald Relief Fund, please call 
+1 (212) 829-4770 or visit cantorrelief.org/donate-now

BGC Group Annual Report 2022

15

100% 

OF GLOBAL REVENUES FROM 
CHARITY DAY ARE DONATED.

Anne Vyalitsyna

16

BGC Group Annual Report 2022

Shaun White

100% 

Oksana Masters

2022 CHARITY DAY RECAP 

In 2022, Charity Day returned to the trading floor after two years of being held online during the pandemic. We were 

delighted to see our colleagues and friends from the worlds of sports, politics, and entertainment in person again in New 

York City, London, Paris, as well as our other global locations. 

“Charity Day is much more than a day,” Howard W. Lutnick, Chairman of the Board and Chief Executive Officer of 

Cantor Fitzgerald, L.P. and BGC Group, Inc., told reporters at the event. “It was initially smaller in the beginning. We were 

just taking care of the families of the people we lost. Now, we can take care of so many more people – 150 charities 

around the world.”

“It’s  also  about  creating  an  uplifting  day  for  our  employees,”  added  Edie  Lutnick,  President  and  Co-Founder  of  The 

Cantor Fitzgerald Relief Fund. 

Charity Day has become a day of remembrance, celebration, and action. From musician, actor, and activist Common 
rapping verse to commemorate the day; to musician Keith Urban taking orders on the trading floor; to some of the 

world’s biggest sports stars learning the art of trading; Charity Day teams celebrities with licensed brokers to raise and 

donate hundreds of millions of dollars in revenue – not just our profits – for underserved communities and wonderful 

charitable organizations with great need. 

“There can be progress through these struggles,” Common said. “We’re taking one of the most difficult things that this 

country has ever experienced and asking, ‘How can we turn this into doing something good for others?’ This shows 

resilience and strength, and it’s what we want our country to be about.” 

Guests who joined us in 2022 included Keith Urban, Regina Hall, Rob Gronkowski, Eli Manning, Shaun White, Camille 

Kostek, Misty Copeland, Common, Jeffrey Dean Morgan, Edie Falco, Jacob Trouba, Lindsey Jacobellis, and others. 

We are so grateful to them all. We would like to thank everyone who joined us for their friendship, time, and support.

Sadie Frost 

Rio Ferdinand 

Laura Whitmore

BGC Partners held its 18th annual Charity Day in London on September 29, 2022. It was postponed from its original 

date of September 12 as a mark of respect due to the passing of Her Majesty The Queen.

BGC Partners Chief Operating Officer Sean Windeatt, expressed the sentiments of the company: “It is with deep 

sadness that we witness the passing of Her Majesty The Queen. Her life of dignity and unwavering dedication to 

service for the common good is an inspiration to us all.” 

Despite the circumstances, the re-scheduled fundraiser was a great success, with a host of celebrities from the world 

of entertainment, sport, and politics joining BGC at its London offices. They worked with BGC’s licensed brokers, 

with all the revenues from the day being donated to many UK-based charities.

Each anniversary of 9/11 is a poignant occasion, but is also a chance to give back and create something positive and 

uplifting with Charity Day. Guests who joined us in London included: Sam Allardyce, Carlton Cole, Amanda Holden, 
Rio Ferdinand, Sadie Frost, Damian Lewis, Davina McCall, Holly Willoughby, and others.

Carlton Cole 

Amanda Holden

 
 
 
 
IT IS WITH DEEP SADNESS THAT WE WITNESS THE PASSING 
OF HER MAJESTY THE QUEEN. HER LIFE OF DIGNITY 
AND UNWAVERING DEDICATION TO SERVICE FOR THE 
COMMON GOOD IS AN INSPIRATION TO US ALL.

CHARITY DAY UK

Damian Lewis

BGC Group Annual Report 2022

19

THE LEGACY OF BGC AND
CANTOR FITZGERALD 

In order to incentivize and enable our employees to grow both professionally and personally, we build employee resource groups. 

A number of initiatives across our geographic regions are in place to promote our corporate values and foster greater diversity 

and inclusion. Examples include a range of early career work experience and internship programs focusing on diverse talent, 

mentorship programs, and initiatives to foster women’s leadership.

The Network of  Women – The Network of  Women (“NOW”) program supports the recruitment, development, and retention 

of women across our organization.  NOW strives for a variety of opportunities and tools to help our employees make new 

professional contacts, find mentors, and develop their careers with the goal of advancing our business reputation.  These events 

and activities also provide opportunities for our members to support one another through a valuable exchange of experiences, 

advice, and best practices for career success.

THE LEGACY OF BGC AND

CANTOR FITZGERALD 

As an organization dedicated to economic growth, opportunity, integrity, and commitment, we seek to empower women within 

BGC and within the communities we affect and serve as a business.  The work of our long-standing Network of  Women is a key 

driving force in accomplishing this goal.

The Rising Professionals League – The Rising Professionals League (“RPL”) was introduced to build upon the legacy of Cantor 

Fitzgerald by inspiring early career professionals to grow professionally and socially while promoting a cohesive environment and 

positively impacting the community.  RPL strives to instill a strong sense of inclusion and belonging for early career professionals 

through a variety of opportunities that promote professional development and support the community through acts of thoughtful 

service.

BGC Group Annual Report 2022

21

AWARDS & GLOBAL PRESENCE

BGC WAS A CONSISTENT PRESENCE AT THE WORLD’S 
BIGGEST FINANCIAL CONFERENCES IN 2022. KEY 
APPEARANCES INCLUDED:

WORLD FINANCIAL INFORMATION CONFERENCE (WFIC)
The only global event that focuses on the sourcing, compliance, and delivery of financial information, with 
600 industry peers from 40 countries in attendance. At the 2022 event in Prague, our delegation 
included:

 ▪ Howard W. Lutnick, Chairman and CEO of BGC Partners, Chairman of Newmark, and Chairman 

and CEO of Cantor Fitzgerald, was a special guest speaker.

FIXED INCOME LEADERS SUMMIT (FILS)
FMX attended the FILS U.S. in Nashville, Tennessee, from June 22-24, 2022, as the event’s lead sponsor. 
FMX Chairman Howard W. Lutnick kicked off day one of the conference as the keynote speaker. The 
Fixed Income Leaders Summit is the biggest fixed-income buy-side conference in the U.S. Mr. Lutnick’s 
keynote detailed the success of the Fenics U.S. Treasuries platform, expectations for the FMX Futures 
platform, and the importance of accurate, differentiated market data.

We also joined our clients and industry peers in the Fixed Income Leaders’ Summit global event in Nice, 
France, in October 2022. It was great to catch up and discuss innovation in the fixed-income market.

BGC’S 2022 INDUSTRY AWARDS

Fenics Market Data named Best Market Data 
Provider  (Broker)  by  Waters  Technology 
Inside Market Data & Inside Reference Data 
Awards 2022

Fenics Market Data named Data Provider of 
the Year by the FOW Global Investor Group 
at the Asia Capital Markets Awards 2022 

Fenics  Market  Data  named  Data  and 
Analytics Vendor of the Year – Europe & Asia 
by  GlobalCapital  at  the  Global  Derivatives 
Awards 2022 

Fenics  GO  named  OTC  Trading  Platform 
of  the  Year  by  Risk.net  at  the  Asia  Risk      
Awards 2022

22

BGC Group Annual Report 2022

AWARDS & GLOBAL PRESENCE

37TH RMA SECURITIES FINANCE AND COLLATERAL 
MANAGEMENT CONFERENCE
Fenics Repo attended the 37th RMA Securities Finance and Collateral 
Management Conference in Miami, Florida, on October 10-13, 2022. 
We were excited to see and speak with many of our securities lending 
and borrowing peers.

XLOD GLOBAL 
Fenics Market Data (FMD) sponsored the XLoD Global flagship 
event, the world’s leading conference on non-financial risk and 
control, in London, UK, from November 15-17, 2022. We discussed 
how FMD is helping our clients solve the complex data 
requirements for non-listed OTC markets as they relate to trade 
surveillance workflows and market abuse regulation.

48TH ANNUAL FIA CONFERENCE 
FMX Futures Exchange attended the 48th annual FIA 
conference in Boca, Florida, where we were 
approved as an Associate Member of the Futures 
Industry Association (FIA). The FIA supports open, 
transparent, and competitive markets, and 
works to protect the integrity of the financial 
system, so we are honored to become a 
member. We met with conference 
attendees, provided one-to-ones, and 
outlined our goal to bring added liquidity, 
resiliency, and capacity to the U.S. 
interest rate futures market.

BGC Group Annual Report 2022

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(cid:30)(cid:65)(cid:75)(cid:59)(cid:68)(cid:71)(cid:75)(cid:77)(cid:74)(cid:61)(cid:1)(cid:44)(cid:61)(cid:63)(cid:57)(cid:74)(cid:60)(cid:65)(cid:70)(cid:63)(cid:1)(cid:32)(cid:71)(cid:74)(cid:61)(cid:65)(cid:63)(cid:70)(cid:1)(cid:36)(cid:77)(cid:74)(cid:65)(cid:75)(cid:60)(cid:65)(cid:59)(cid:76)(cid:65)(cid:71)(cid:70)(cid:75)(cid:1)(cid:46)(cid:64)(cid:57)(cid:76)(cid:1)(cid:42)(cid:74)(cid:61)(cid:78)(cid:61)(cid:70)(cid:76)(cid:1)(cid:35)(cid:70)(cid:75)(cid:72)(cid:61)(cid:59)(cid:76)(cid:65)(cid:71)(cid:70)(cid:75)

(cid:42)(cid:27)(cid:44)(cid:46)(cid:1)(cid:35)(cid:35)(cid:35)

(cid:35)(cid:46)(cid:31)(cid:39)(cid:1)(cid:16)(cid:15)(cid:13)

(cid:30)(cid:65)(cid:74)(cid:61)(cid:59)(cid:76)(cid:71)(cid:74)(cid:75)(cid:11)(cid:1)(cid:31)(cid:80)(cid:61)(cid:59)(cid:77)(cid:76)(cid:65)(cid:78)(cid:61)(cid:1)(cid:41)(cid:62)(cid:62)(cid:65)(cid:59)(cid:61)(cid:74)(cid:75)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:29)(cid:71)(cid:74)(cid:72)(cid:71)(cid:74)(cid:57)(cid:76)(cid:61)(cid:1)(cid:33)(cid:71)(cid:78)(cid:61)(cid:74)(cid:70)(cid:57)(cid:70)(cid:59)(cid:61)

(cid:31)(cid:80)(cid:61)(cid:59)(cid:77)(cid:76)(cid:65)(cid:78)(cid:61)(cid:1)(cid:29)(cid:71)(cid:69)(cid:72)(cid:61)(cid:70)(cid:75)(cid:57)(cid:76)(cid:65)(cid:71)(cid:70)
(cid:45)(cid:61)(cid:59)(cid:77)(cid:74)(cid:65)(cid:76)(cid:81)(cid:1)(cid:41)(cid:79)(cid:70)(cid:61)(cid:74)(cid:75)(cid:64)(cid:65)(cid:72)(cid:1)(cid:71)(cid:62)(cid:1)(cid:29)(cid:61)(cid:74)(cid:76)(cid:57)(cid:65)(cid:70)(cid:1)(cid:28)(cid:61)(cid:70)(cid:61)(cid:62)(cid:65)(cid:59)(cid:65)(cid:57)(cid:68)(cid:1)(cid:41)(cid:79)(cid:70)(cid:61)(cid:74)(cid:75)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:39)(cid:57)(cid:70)(cid:57)(cid:63)(cid:61)(cid:69)(cid:61)(cid:70)(cid:76)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:44)(cid:61)(cid:68)(cid:57)(cid:76)(cid:61)(cid:60)(cid:1)(cid:45)(cid:76)(cid:71)(cid:59)(cid:67)(cid:64)(cid:71)(cid:68)(cid:60)(cid:61)(cid:74)(cid:1)(cid:39)(cid:57)(cid:76)(cid:76)(cid:61)(cid:74)(cid:75)
(cid:29)(cid:61)(cid:74)(cid:76)(cid:57)(cid:65)(cid:70)(cid:1)(cid:44)(cid:61)(cid:68)(cid:57)(cid:76)(cid:65)(cid:71)(cid:70)(cid:75)(cid:64)(cid:65)(cid:72)(cid:75)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:44)(cid:61)(cid:68)(cid:57)(cid:76)(cid:61)(cid:60)(cid:1)(cid:46)(cid:74)(cid:57)(cid:70)(cid:75)(cid:57)(cid:59)(cid:76)(cid:65)(cid:71)(cid:70)(cid:75)(cid:11)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:30)(cid:65)(cid:74)(cid:61)(cid:59)(cid:76)(cid:71)(cid:74)(cid:1)(cid:35)(cid:70)(cid:60)(cid:61)(cid:72)(cid:61)(cid:70)(cid:60)(cid:61)(cid:70)(cid:59)(cid:61)
(cid:42)(cid:74)(cid:65)(cid:70)(cid:59)(cid:65)(cid:72)(cid:57)(cid:68)(cid:1)(cid:27)(cid:59)(cid:59)(cid:71)(cid:77)(cid:70)(cid:76)(cid:57)(cid:70)(cid:76)(cid:1)(cid:32)(cid:61)(cid:61)(cid:75)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:45)(cid:61)(cid:74)(cid:78)(cid:65)(cid:59)(cid:61)(cid:75)

(cid:35)(cid:46)(cid:31)(cid:39)(cid:1)(cid:16)(cid:16)(cid:13)
(cid:35)(cid:46)(cid:31)(cid:39)(cid:1)(cid:16)(cid:17)(cid:13)
(cid:35)(cid:46)(cid:31)(cid:39)(cid:1)(cid:16)(cid:18)(cid:13)

(cid:35)(cid:46)(cid:31)(cid:39)(cid:1)(cid:16)(cid:19)(cid:13)

(cid:42)(cid:27)(cid:44)(cid:46)(cid:1)(cid:35)(cid:48)

(cid:35)(cid:46)(cid:31)(cid:39)(cid:1)(cid:16)(cid:20)(cid:13)
(cid:35)(cid:46)(cid:31)(cid:39)(cid:1)(cid:16)(cid:21)(cid:13)

(cid:31)(cid:80)(cid:64)(cid:65)(cid:58)(cid:65)(cid:76)(cid:75)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:32)(cid:65)(cid:70)(cid:57)(cid:70)(cid:59)(cid:65)(cid:57)(cid:68)(cid:1)(cid:45)(cid:76)(cid:57)(cid:76)(cid:61)(cid:69)(cid:61)(cid:70)(cid:76)(cid:1)(cid:45)(cid:59)(cid:64)(cid:61)(cid:60)(cid:77)(cid:68)(cid:61)(cid:75)
(cid:32)(cid:71)(cid:74)(cid:69)(cid:1)(cid:16)(cid:15)(cid:12)(cid:37)(cid:1)(cid:45)(cid:77)(cid:69)(cid:69)(cid:57)(cid:74)(cid:81)

(cid:39)(cid:53)(cid:59)(cid:57)

(cid:17)

(cid:16)(cid:16)

(cid:16)(cid:16)

(cid:16)(cid:18)

(cid:18)(cid:22)

(cid:22)(cid:17)

(cid:22)(cid:17)

(cid:22)(cid:18)

(cid:22)(cid:18)

(cid:22)(cid:19)
(cid:23)(cid:16)
(cid:23)(cid:17)

(cid:16)(cid:17)(cid:24)
(cid:16)(cid:18)(cid:17)

(cid:17)(cid:15)(cid:16)
(cid:17)(cid:15)(cid:16)

(cid:17)(cid:15)(cid:16)

(cid:17)(cid:15)(cid:16)

(cid:17)(cid:15)(cid:17)

(cid:17)(cid:15)(cid:17)
(cid:17)(cid:15)(cid:17)
(cid:17)(cid:15)(cid:17)
(cid:17)(cid:15)(cid:17)

(cid:17)(cid:15)(cid:18)
(cid:17)(cid:15)(cid:23)

GLOSSARY OF TERMS, ABBREVIATIONS AND ACRONYMS

The following terms, abbreviations and acronyms are used to identify frequently used terms and phrases that may be 

used in this report: 

TERM

3.750% Senior Notes

The Company’s $300.0 million principal amount of 3.750% senior notes maturing on October 
1, 2024 and issued on September 27, 2019

DEFINITION

4.375% Senior Notes

The Company’s $300.0 million principal amount of 4.375% senior notes maturing on December 
15, 2025 and issued on July 10, 2020

5.125% Senior Notes

The  Company’s  original  $300.0  million  principal  amount  of  5.125%  senior  notes,  which 
matured  on  May  27,  2021  and  were  issued  on  May  27,  2016,  of  which  $44.0  million  was 
redeemed through a cash tender offer by the Company on August 14, 2020

5.375% Senior Notes

The Company’s $450.0 million principal amount of 5.375% senior notes maturing on July 24, 
2023 and issued on July 24, 2018

Adjusted Earnings

A non-GAAP financial measure used by the Company to evaluate financial performance, which 
primarily excludes (i) certain non-cash items and other expenses that generally do not involve 
the receipt or outlay of cash and do not dilute existing stockholders, and (ii) certain gains and 
charges that management believes do not best reflect the ordinary results of BGC

ADV

Algomi

API

Average daily volume

Algomi Limited, a wholly owned subsidiary of the Company, acquired on March 6, 2020

Application Programming Interface

April 2008 distribution 
rights shares

Cantor’s  deferred  stock  distribution  rights  provided  to  current  and  former  Cantor  partners  on 
April 1, 2008

Aqua

ASC

ASU

Aqua Securities L.P., an alternative electronic trading platform, which offers new pools of block 
liquidity  to  the  global  equities  markets  and  is  a  49%-owned  equity  method  investment  of  the 
Company and 51% owned by Cantor

Accounting Standards Codification

Accounting Standards Update

Audit Committee

Audit Committee of the Board

August 2022 Sales 
Agreement

CEO  Program  sales  agreement,  by  and  between  the  Company  and  CF&Co,  dated  August  12, 
2022, pursuant to which the Company can offer and sell up to an aggregate of $300.0 million of 
shares of BGC Class A common stock

Berkeley Point

Berkeley  Point  Financial  LLC,  a  wholly  owned  subsidiary  of  the  Company  acquired  on 
September 8, 2017 and contributed to Newmark in the Separation

Besso

BGC

Besso Insurance Group Limited, formerly a wholly owned subsidiary of the Company, acquired 
on  February  28,  2017.  Sold  to  The  Ardonagh  Group  on  November  1,  2021  as  part  of  the 
Insurance Business Disposition

BGC Partners, Inc. and, where applicable, its consolidated subsidiaries

BGC or our Class A 
common stock

BGC Partners Class A common stock, par value $0.01 per share

2

TERM

BGC or our Class B 
common stock

BGC Credit Agreement

BGC Partners Class B common stock, par value $0.01 per share

DEFINITION

Agreement  between  the  Company  and  Cantor,  dated  March  19,  2018,  that  provides  for  each 
party  or  its  subsidiaries  to  borrow  up  to  $250.0  million,  as  amended  on  August  6,  2018  to 
increase the facility to $400.0 million

BGC Financial or BGCF

BGC Financial, L.P.

BGC Global OpCo

BGC Global Holdings, L.P., an operating partnership, which is owned jointly by BGC and BGC 
Holdings and holds the non-U.S. businesses of BGC

BGC Entity Group

BGC, BGC Holdings, and BGC U.S. OpCo, and their respective subsidiaries (other than, prior 
to the Spin-Off, the Newmark Group), collectively

BGC Group, Inc.

BGC  Group,  Inc.,  a  Delaware  corporation  and  currently  a  wholly  owned  subsidiary  of  BGC 
Partners. BGC Group was incorporated on April 19, 2021, solely for the purpose of effecting 
the Corporate Conversion and to serve as the new publicly traded holding company for the BGC 
businesses.  Immediately  following  the  Corporate  Conversion,  BGC  Group,  Inc.  Class  A 
common stock is expected to be listed on the NASDAQ Global Select Market under the ticker 
symbol “BGC.” BGC Group, Inc. has not carried on any activities other than in connection with 
the Corporate Conversion

BGC Holdings

BGC  Holdings,  L.P.,  an  entity  owned  by  Cantor,  Founding  Partners,  BGC  employee  partners 
and, after the Separation, Newmark employee partners

BGC Holdings Distribution Pro-rata distribution, pursuant to the Separation and Distribution Agreement, by BGC Holdings 
to  its  partners  of  all  of  the  exchangeable  limited  partnership  interests  of  Newmark  Holdings 
owned by BGC Holdings immediately prior to the distribution, completed on the Distribution 
Date

BGC OpCos

BGC U.S. OpCo and BGC Global OpCo, collectively

BGC Partners

BGC Partners, Inc. and, where applicable, its consolidated subsidiaries

BGC U.S. OpCo

BGC  Partners,  L.P.,  an  operating  partnership,  which  is  owned  jointly  by  BGC  and  BGC 
Holdings and holds the U.S. businesses of BGC

Board

Brexit

Cantor

Board of Directors of the Company

Exit of the U.K. from the EU

Cantor Fitzgerald, L.P. and, where applicable, its subsidiaries

Cantor group

Cantor and its subsidiaries other than BGC Partners, including Newmark

Cantor units

CCRE

CECL

Limited partnership interests of BGC Holdings or Newmark Holdings held by the Cantor group, 
which  units  are  exchangeable  into  shares  of  BGC  Class  A  common  stock  or  BGC  Class  B 
common  stock,  or  Newmark  Class  A  common  stock  or  Newmark  Class  B  common  stock,  as 
applicable

Cantor Commercial Real Estate Company, L.P.

Current Expected Credit Losses

CEO Program

Controlled equity offering program

CF&Co

Cantor Fitzgerald & Co., a wholly owned broker-dealer subsidiary of Cantor

3

TERM

DEFINITION

CF Group Management, Inc., the general partner of Cantor

CFGM

CFS

CFTC

Charity Day

Class B Issuance

CLOB

CME

Cantor Fitzgerald Securities, a wholly owned broker-dealer subsidiary of Cantor

Commodity Futures Trading Commission

BGC’s annual event held on September 11th where employees of the Company raise proceeds 
for charity

Issuance by BGC of 10,323,366 and 712,907 shares of BGC Class B common stock to Cantor 
and CFGM, respectively, in exchange for an aggregate of 11,036,273 shares of BGC Class A 
common stock under the Exchange Agreement, completed on November 23, 2018

Central Limit Order Book

CME Group Inc., the company that acquired NEX in November 2018

Company

BGC Partners, Inc. and, where applicable, its consolidated subsidiaries

Company Debt Securities

The 5.125% Senior Notes, 5.375% Senior Notes, 3.750% Senior Notes, 4.375% Senior Notes 
and any future debt securities issued by the Company

Compensation Committee

Compensation Committee of the Board

Contribution Ratio

Equal  to  a  BGC  Holdings  limited  partnership  interest  multiplied  by  one,  divided  by  2.2  (or 
0.4545)

Corant

Corant Global Limited, BGC's former Insurance brokerage business

Corporate Conversion

The  Corporate  Conversion  of  the  BGC  businesses  through  a  series  of  mergers  and  related 
transactions  pursuant  to  which  BGC  Partners  and  BGC  Holdings  will  become  wholly  owned 
subsidiaries of BGC Group, Inc. Once the Corporate Conversion is completed, it will have the 
effect  of  transforming  the  organizational  structure  of  the  BGC  businesses  from  an  Up-C 
structure to a simplified “Full C-Corporation” structure

Corporate Conversion 
Agreement

The Corporate Conversion Agreement is the agreement entered into on November 15, 2022 by 
and among BGC Partners, BGC Holdings, BGC Group, Inc., and other affiliated entities, and, 
solely  for  the  purposes  of  certain  provisions  therein,  Cantor,  that  provides  for  the  Corporate 
Conversion of the BGC businesses

Corporate Conversion 
Transactions

The  Corporation  Conversion  Transactions  refers  to  the  series  of  mergers  contemplated  by  the 
Corporate Conversion Agreement and related transactions

COVID-19

Coronavirus Disease 2019

CRD

Capital Requirements Directive

Credit Facility

A $150.0 million credit facility between the Company and an affiliate of Cantor entered into on 
April 21, 2017, which was terminated on March 19, 2018

DCM

DCO

Designated Contract Market

Derivatives Clearing Organization

Distribution Date

November  30,  2018,  the  date  that  BGC  and  BGC  Holdings  completed  the  Spin-Off  and  the 
BGC Holdings Distribution, respectively

Dodd-Frank Act

Dodd-Frank Wall Street Reform and Consumer Protection Act

4

TERM

DEFINITION

ECB

Ed Broking

EMIR

EPS

Equity Plan

ESG

eSpeed

European Central Bank

Ed Broking Group Limited, formerly a wholly owned subsidiary of the Company, acquired on 
January  31,  2019  and  sold  to  The  Ardonagh  Group  on  November  1,  2021  as  part  of  the 
Insurance Business Disposition

European Market Infrastructure Regulation

Earnings Per Share

Eighth  Amended  and  Restated  Long  Term  Incentive  Plan,  approved  by  the  Company’s 
stockholders at the annual meeting of stockholders on November 22, 2021

Environmental, social and governance, including sustainability or similar items

Various assets comprising the Fully Electronic portion of the Company’s former benchmark on-
the-run  U.S.  Treasury  brokerage,  market  data  and  co-location  service  businesses,  sold  to 
Nasdaq on June 28, 2013

EU

European Union

Exchange Act

Securities Exchange Act of 1934, as amended

Exchange Agreement

A letter agreement by and between BGC Partners and Cantor and CFGM, dated June 5, 2015, 
that grants Cantor and CFGM the right to exchange shares of BGC Class A common stock into 
shares of BGC Class B common stock on a one-to-one basis up to the limits described therein

Exchange Ratio

Ratio by which a Newmark Holdings limited partnership interest can be exchanged for shares of 
Newmark Class A or Class B common stock

FASB

FCA

FCM

Financial Accounting Standards Board

Financial Conduct Authority of the U.K.

Futures Commission Merchant

February 2012 distribution 
rights shares

Cantor’s  deferred  stock  distribution  rights  provided  to  current  and  former  Cantor  partners  on 
February 14, 2012

Fenics

BGC’s group of electronic brands, offering a number of market infrastructure and connectivity 
services, Fully Electronic marketplaces, and the Fully Electronic brokerage of certain products 
that  also  may  trade  via  Voice  and  Hybrid  execution,  including  market  data  and  related 
information services, Fully Electronic brokerage, connectivity software, compression and other 
post-trade  services,  analytics  related  to  financial  instruments  and  markets,  and  other  financial 
technology solutions; includes Fenics Growth Platforms and Fenics Markets

Fenics Growth Platforms

Consists of Fenics UST, Fenics GO, Lucera, Fenics FX and other newer standalone platforms

Fenics Integrated

Fenics Markets

Represents  Fenics  businesses  that  utilize  sufficient  levels  of  technology  such  that  significant 
amounts  of  their  transactions  can  be,  or  are,  executed  without  broker  intervention  and  have 
expected pre-tax margins of at least 25%

Consists  of  the  Fully  Electronic  portions  of  BGC’s  brokerage  businesses,  data,  software  and 
post-trade revenues that are unrelated to Fenics Growth Platforms, as well as Fenics Integrated 
revenues

FINRA

Financial Industry Regulatory Authority

5

TERM

DEFINITION

FMX

BGC's combined U.S. Treasury and Futures electronic marketplace

Founding Partners

Individuals  who  became  limited  partners  of  BGC  Holdings  in  the  mandatory  redemption  of 
interests in Cantor in connection with the 2008 separation and merger of Cantor’s BGC division 
with  eSpeed,  Inc.  (provided  that  members  of  the  Cantor  group  and  Howard  W.  Lutnick 
(including any entity directly or indirectly controlled by Mr. Lutnick or any trust with respect to 
which  he  is  a  grantor,  trustee  or  beneficiary)  are  not  founding  partners)  and  became  limited 
partners of Newmark Holdings in the Separation

Founding/Working Partners Holders of FPUs

FPUs

Freedom

Founding/Working  Partners  units  in  BGC  Holdings  or  Newmark  Holdings  that  are  generally 
redeemed upon termination of employment

Freedom  International  Brokerage  Company,  a  45%-owned  equity  method  investment  of  the 
Company

Fully Electronic

Broking transactions intermediated on a solely electronic basis rather than by Voice or Hybrid 
broking

Futures Exchange Group

CFLP CX Futures Exchange Holdings, LLC, CFLP CX Futures Exchange Holdings, L.P., CX 
Futures  Exchange  Holdings,  LLC,  CX  Clearinghouse  Holdings,  LLC,  CX  Futures  Exchange, 
L.P. and CX Clearinghouse, L.P.

FX

GDPR

GFI

GILTI

Foreign exchange

General Data Protection Regulation

GFI Group Inc., a wholly owned subsidiary of the Company, acquired on January 12, 2016

Global Intangible Low-Taxed Income

Ginga Petroleum

Ginga Petroleum (Singapore) Pte Ltd, a wholly owned subsidiary of the Company, acquired on 
March 12, 2019

GUI

HDUs

Hybrid

ICAP

ICE

IMO

Graphical User Interface

LPUs with capital accounts, which are liability awards recorded in “Accrued compensation” in 
the Company’s consolidated statements of financial condition

Broking  transactions  executed  by  brokers  and  involving  some  element  of  Voice  broking  and 
electronic trading

ICAP plc, a part of TP ICAP group, and a leading markets operator and provider of execution 
and information services

Intercontinental Exchange

Initial Margin Optimization

Incentive Plan

The Company’s Second Amended and Restated Incentive Bonus Compensation Plan, approved 
by the Company’s stockholders at the annual meeting of stockholders on June 6, 2017

Insurance brokerage 
business

The  insurance  brokerage  business  of  BGC,  including  Corant,  Ed  Broking,  Besso,  Piiq  Risk 
Partners, Junge, Cooper Gay, Global Underwriting and Epsilon, which business was sold to The 
Ardonagh Group on November 1, 2021

6

TERM

Insurance Business 
Disposition

The  sale  of  the  Insurance  brokerage  business  for  $534.9  million  in  gross  cash  proceeds  after 
closing  adjustments,  subject  to  limited  post-closing  adjustments,  completed  on  November  1, 
2021

DEFINITION

IR Act

LCH

Inflation Reduction Act of 2022

London Clearing House

Legacy BGC Holdings 
Units

Legacy Newmark Holdings 
Units

BGC Holdings LPUs outstanding immediately prior to the Separation

Newmark Holdings LPUs issued in connection with the Separation

LGD

LIBOR

LPUs

Lucera

Loss Given Default

London Interbank Offering Rate

Certain  limited  partnership  units  in  BGC  Holdings  or  Newmark  Holdings  held  by  certain 
employees of BGC Partners or Newmark and other persons who have provided services to BGC 
Partners or Newmark, which units may include APSIs, APSUs, AREUs, ARPSUs, HDUs, U.K. 
LPUs, N Units, PLPUs, PPSIs, PPSUs, PSEs, PSIs, PSUs, REUs, and RPUs, along with future 
types of limited partnership units in BGC Holdings or Newmark Holdings

A  wholly  owned  subsidiary  of  the  Company,  also  known  as  “LFI  Holdings,  LLC”  or  “LFI,” 
which is a software defined network offering the trading community direct connectivity

March 2018 Form S-3

CEO Program shelf registration statement on Form S-3 filed on March 9, 2018

March 2018 Sales 
Agreement

CEO  Program  sales  agreement,  by  and  between  the  Company  and  CF&Co,  dated  March  9, 
2018, pursuant to which the Company could offer and sell up to an aggregate of $300.0 million 
of shares of BGC Class A common stock, which agreement expired in September 2021

MEA

MiFID II

Middle East and Africa region

Markets  in  Financial  Instruments  Directive  II,  a  legislative  framework  instituted  by  the  EU 
to regulate financial markets and improve protections for investors by increasing transparency 
and standardizing regulatory disclosures

Mint Brokers

A  wholly  owned  subsidiary  of  the  Company,  acquired  on  August  19,  2010,  registered  as  an 
FCM with both the CFTC and the NFA

Nasdaq

NDF

Newmark

Nasdaq, Inc., formerly known as NASDAQ OMX Group, Inc.

Non-deliverable forwards

Newmark  Group,  Inc.  (NASDAQ  symbol:  NMRK),  a  publicly  traded  and  former  majority-
owned  subsidiary  of  BGC  until  the  Distribution  Date,  and,  where  applicable,  its  consolidated 
subsidiaries

Newmark Class A common 
stock

Newmark Class B common 
stock

Newmark Class A common stock, par value $0.01 per share

Newmark Class B common stock, par value $0.01 per share

Newmark Group

Newmark,  Newmark  Holdings,  and  Newmark  OpCo  and  their  respective  subsidiaries, 
collectively

7

TERM

DEFINITION

Newmark Holdings

Newmark Holdings, L.P.

Newmark IPO

Newmark OpCo

NYAG

NEX

NFA

Non-GAAP

N Units

OCI

OTC

OTF

Initial public offering of 23 million shares of Newmark Class A common stock by Newmark at 
a price of $14.00 per share in December 2017

Newmark  Partners,  L.P.,  an  operating  partnership,  which  is  owned  jointly  by  Newmark  and 
Newmark Holdings and holds the business of Newmark

New York Attorney General’s Office

NEX Group plc, an entity formed in December 2016, formerly known as ICAP

National Futures Association

A  financial  measure  that  differs  from  the  most  directly  comparable  measure  calculated  and 
presented in accordance with U.S. GAAP, such as Adjusted Earnings and Adjusted EBITDA

Non-distributing  partnership  units  of  BGC  Holdings  or  Newmark  Holdings  that  may  not  be 
allocated any item of profit or loss, and may not be made exchangeable into shares of Class A 
common stock, including NREUs, NPREUs, NLPUs, NPLPUs, NPSUs, and NPPSUs

Other comprehensive income (loss), including gains and losses on cash flow and net investment 
hedges, unrealized gains and losses on available for sale securities (in periods prior to January 
1,  2018),  certain  gains  and  losses  relating  to  pension  and  other  retirement  benefit  obligations 
and foreign currency translation adjustments

Over-the-Counter

Organized Trading Facility, a regulated execution venue category introduced by MiFID II

PCD assets

Purchased financial assets with deterioration in credit quality since origination

PD

Probability of Default

Period Cost Method

Treatment  of  taxes  associated  with  the  GILTI  provision  as  a  current  period  expense  when 
incurred rather than recording deferred taxes for basis differences

Poten & Partners

Poten  &  Partners  Group,  Inc.,  a  wholly  owned  subsidiary  of  the  Company,  acquired  on 
November 15, 2018

Preferred Distribution

Allocation of net profits of BGC Holdings or Newmark Holdings to holders of Preferred Units, 
at a rate of either 0.6875% (i.e., 2.75% per calendar year) or such other amount as set forth in 
the award documentation

Preferred Units

Real Estate L.P.

Real GDP

Preferred partnership units in BGC Holdings or Newmark Holdings, such as PPSUs, which are 
settled for cash, rather than made exchangeable into shares of Class A common stock, are only 
entitled to a Preferred Distribution, and are not included in BGC’s or Newmark’s fully diluted 
share count

CF  Real  Estate  Finance  Holdings,  L.P.,  a  commercial  real  estate-related  financial  and 
investment  business  controlled  and  managed  by  Cantor,  of  which  Newmark  owns  a  minority 
interest

Real  Gross  Domestic  Product  is  a  macroeconomic  measure  of  the  value  of  economic  output 
adjusted  for  price  changes  (i.e.,  inflation  or  deflation),  which  transforms  the  money-value 
measure, nominal GDP, into an index for quantity of total output

Record Date

Close of business on November 23, 2018, in connection with the Spin-Off

8

TERM

Repurchase Agreements

Revolving Credit 
Agreement

Securities  sold  under  agreements  to  repurchase  that  are  recorded  at  contractual  amounts, 
including interest, and accounted for as collateralized financing transactions

DEFINITION

The  Company’s  unsecured senior revolving credit agreement with Bank of America, N.A., as 
administrative agent, and a syndicate of lenders, dated as of November 28, 2018, that provides 
for a maximum revolving loan balance of $350.0 million, bearing interest at either LIBOR or a 
defined base rate plus additional margin, amended on December 11, 2019 to extend the maturity 
date  to  February  26,  2021  and  further  amended  on  February  26,  2020  to  extend  the  maturity 
date  to  February  26,  2023.  On  March  10,  2022,  the  agreement  was  amended  and  restated  to 
increase  the  size  of  the  credit  facility  to  $375.0  million,  bearing  interest  at  either  SOFR  or  a 
defined base rate plus additional margin, and extend the maturity date to March 10, 2025

ROU

RSUs

Right-of-Use

BGC or Newmark unvested restricted stock units, payable in shares of BGC Class A common 
stock  or  Newmark  Class  A  common  stock,  respectively,  held  by  certain  employees  of  BGC 
Partners  or  Newmark  and  other  persons  who  have  provided  services  to  BGC  Partners  or 
Newmark, or issued in connection with certain acquisitions

Russia's Invasion of Ukraine Russia's invasion of Ukraine, which led to imposed sanctions by the U.S., U.K., EU, and other 

SaaS

SBSEF

SEC

countries on Russian counterparties

Software as a Service

Security-based Swap Execution Facility

U.S. Securities and Exchange Commission

Securities Act

Securities Act of 1933, as amended

SEF

Separation

Swap Execution Facility

Principal  corporate  transactions  pursuant  to  the  Separation  and  Distribution  Agreement,  by 
which BGC, BGC Holdings and BGC U.S. OpCo and their respective subsidiaries (other than 
the  Newmark  Group)  transferred  to  Newmark,  Newmark  Holdings  and  Newmark  OpCo  and 
their respective subsidiaries the assets and liabilities of the BGC Entity Group relating to BGC’s 
real  estate  services  business,  and  related  transactions,  including  the  distribution  of  Newmark 
Holdings  units  to  holders  of  units  in  BGC  Holdings  and  the  assumption  and  repayment  of 
certain BGC indebtedness by Newmark

Separation and Distribution 
Agreement

Separation  and  Distribution  Agreement,  by  and  among  the  BGC  Entity  Group,  the  Newmark 
Group,  Cantor  and  BGC  Global  OpCo,  originally  entered  into  on  December  13,  2017,  as 
amended on November 8, 2018 and amended and restated on November 23, 2018

SMCR

SOFR

SPAC

Senior Managers Certification Regime

Secured Overnight Financing Rate

Special Purpose Acquisition Company

SPAC Investment Banking 
Activities

Spin-Off

Aurel's investment banking activities with respect to SPACs

Pro-rata  distribution,  pursuant  to  the  Separation  and  Distribution  Agreement,  by  BGC  to  its 
stockholders  of  all  the  shares  of  common  stock  of  Newmark  owned  by  BGC  Partners 
immediately  prior  to  the  Distribution  Date,  with  shares  of  Newmark  Class  A  common  stock 
distributed  to  the  holders  of  shares  of  BGC  Class  A  common  stock  (including  directors  and 
executive  officers  of  BGC  Partners)  of  record  on  the  Record  Date,  and  shares  of  Newmark 
Class  B  common  stock  distributed  to  the  holders  of  shares  of  BGC  Class  B  common  stock 
(Cantor and CFGM) of record on the Record Date, completed on the Distribution Date

9

TERM

DEFINITION

Tax Cuts and Jobs Act enacted on December 22, 2017

Troubled Debt Restructurings

Tax Act

TDRs

The Ardonagh Group

The Ardonagh Group Limited; the U.K.'s largest independent insurance broker and purchaser of 
BGC's Insurance brokerage business completed on November 1, 2021

Tower Bridge

Tower Bridge International Services L.P., a subsidiary of the Company, which is 52%-owned 
by the Company and 48%-owned by Cantor

TP ICAP

Tradition

Tullett

TP ICAP plc, an entity formed in December 2016, formerly known as Tullett

Compagnie Financière Tradition (which is majority owned by Viel & Cie)

Tullett Prebon plc, a part of TP ICAP group and an interdealer broker, primarily operating as an 
intermediary in the wholesale financial and energy sectors

U.K.

United Kingdom

U.S. GAAP or GAAP

Generally Accepted Accounting Principles in the United States of America

UBT

VIE

Voice

Unincorporated Business Tax

Variable Interest Entity

Voice-only broking transactions executed by brokers over the telephone

10

SPECIAL NOTE ON FORWARD-LOOKING INFORMATION

This  Annual  Report  on  Form  10-K  contains  forward-looking  statements.  Such  statements  are  based  upon  current 
expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may 
be  deemed  to  be  forward-looking  statements.  For  example,  words  such  as  “may,”  “will,”  “should,”  “estimates,”  “predicts,” 
“possible,” “potential,” “continue,” “strategy,” “believes,” “anticipates,” “plans,” “expects,” “intends,” and similar expressions 
are intended to identify forward-looking statements. The information included herein is given as of the filing date of this Form 
10-K with the SEC, and future results or events could differ significantly from these forward-looking statements. The Company
does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future
events, or otherwise.

RISK FACTOR SUMMARY

The following is a summary of material risks that could affect our business, each of which may have a material adverse 
effect  on  our  business,  financial  condition,  results  of  operations  and  prospects.  This  summary  may  not  contain  all  of  our 
material risks, and it is qualified in its entirety by the more detailed risk factors set forth in Item 1A “Risk Factors.”

•

•

•

•

Our business, financial condition, results of operations and prospects have been and may continue to be affected
both positively and negatively by conditions in the global economy and financial markets generally.

Actions taken by governments in response to rising inflation rates may have a material impact on our business.

The U.K. exit from the EU could materially adversely impact our customers, counterparties, businesses, financial
condition, results of operations and prospects.

The  effects  of  the  COVID-19  pandemic  continue  to  significantly  disrupt  and  adversely  affect  the  environment  in
which we and our customers and competitors operate, including the global economy, the U.S. economy, the global
financial markets, our businesses, financial condition, results of operations and prospects.

• We  may  pursue  opportunities,  including  strategic  alliances,  acquisitions,  dispositions,  joint  ventures  or  other
growth opportunities (including hiring new brokers and salespeople), which could present unforeseen integration
obstacles or costs and could dilute our stockholders. We may also face competition in our acquisition strategy, and
such competition may limit such opportunities.

• We have offerings linked to cryptocurrencies that could expose us to technology, regulatory and financial risks.

• We are subject to certain risks relating to our indebtedness, including constraints on our ability to raise additional
capital, declines in our credit ratings and limitations on our financial flexibility to react to changes in the economy
or  the  financial  services  industry.  We  may  need  to  incur  additional  indebtedness  to  finance  our  growth  strategy,
including in connection with the re-positioning of aspects of our business to adapt to changes in market conditions
in the financial services industry.

• We may not be able to protect our intellectual property rights or may be prevented from using intellectual property

necessary for our business.

•

•

•

The  loss  of  one  or  more  of  our  key  executives,  the  development  of  future  talent  and  the  ability  of  certain  key
employees to devote adequate time and attention to us are a key part of the success of our businesses, and failure to
continue to employ and have the benefit of these executives, may adversely affect our businesses and prospects.

If  we  fail  to  implement  and  maintain  an  effective  internal  control  environment,  our  operations,  reputation,  and
stock price could suffer, we may need to restate our financial statements, and we may be delayed or prevented from
accessing the capital markets.

Consolidation  and  concentration  of  market  share  in  the  banking,  brokerage,  exchange  and  financial  services
industries  could  materially  adversely  affect  our  business,  financial  condition,  results  of  operations  and  prospects
because we may not be able to compete successfully.

11

•

•

The financial services industry in general faces potential regulatory, litigation and/or criminal risks that may result
in damages or fines or other penalties as well as costs, and we may face damage to our professional reputation and
legal  liability  if  our  products  and  services  are  not  regarded  as  satisfactory,  our  employees  do  not  adhere  to  all
applicable legal and professional standards, or for other reasons, all of which could have a material adverse effect
on our businesses, financial condition, results of operations and prospects.

Because competition for the services of brokers, salespeople, managers, technology professionals and other front-
office  personnel,  in  the  financial  services  industry  is  intense,  it  could  affect  our  ability  to  attract  and  retain  a
sufficient number of highly skilled brokers or other professional services personnel, in turn adversely impacting our
revenues,  resulting  in  a  material  adverse  effect  on  our  businesses,  financial  condition,  results  of  operations  and
prospects.

• We are subject to risks inherent in doing business in international financial markets, international expansion and

international operations, including regulatory risks, political risks, and foreign currency risks.

•

•

•

Our activities are subject to credit and performance risks, which could result in us incurring significant losses that
could materially adversely affect our business, financial condition, results of operations and prospects.

Increased scrutiny and changing expectations from stockholders with respect to the Company's ESG practices may
result in additional costs or risks.

If we or BGC Holdings were deemed an “investment company” under the Investment Company Act, the Investment
Company Act’s restrictions could make it impractical for us to continue our business.

• We  are  a  holding  company  with  dual  class  common  stock.  Holders  of  our  Class  A  common  stock  are  subject  to
certain risks resulting from our structure, including our dependence upon distributions from the BGC OpCos and
the  concentration  of  our  voting  control  among  the  holders  of  our  Class  B  common  stock,  which  may  materially
adversely affect the market price of our Class A common stock.

• We  are  controlled  by  Cantor  and  Mr.  Lutnick,  who  have  potential  conflicts  of  interest  with  us  and  may  exercise

their control in a way that favors their interests to our detriment.

•

The expected benefits of the Corporate Conversion may not be obtained.

• We  are  currently  controlled  by  Cantor,  but  the  Corporate  Conversion  will  have  the  effect  of  increasing  the
percentage of voting power held by Cantor as a result of the issuance of BGC Group, Inc. Class B common stock in
exchange for the BGC Holdings exchangeable units held by Cantor. The increase in voting power held by Cantor
could result in Cantor exercising control over BGC Group, Inc. for a longer period of time than it would over us
absent the Corporate Conversion.

•

Purchasers, as well as existing stockholders, may experience significant dilution as a result of offerings of shares of
our Class A common stock. Our management will have broad discretion as to the timing and amount of sales of our
Class A common stock, as well as the application of the net proceeds of any such sales.

12

PART I

ITEM 1. 

BUSINESS

Throughout  this  document,  BGC  Partners,  Inc.  is  referred  to  as  “BGC”  and,  together  with  its  subsidiaries,  as  the 

“Company,” “BGC Partners,” “we,” “us,” or “our.”

Our Business

BGC is a leading global financial brokerage and technology company servicing the global financial markets. Through 
brands  including  BGC®,  Fenics®,  GFI®,  Sunrise  Brokers™,  Poten  &  Partners®,  and  RP  Martin®  among  others,  our 
businesses  specialize  in  the  brokerage  of  a  broad  range  of  products,  including  fixed  income  such  as  government  bonds, 
corporate bonds, and other debt instruments, as well as related interest rate derivatives and credit derivatives. Additionally, we 
provide brokerage products across FX, Equities, Energy and Commodities, Shipping and Futures and Options. Our businesses 
also  provide  a  wide  variety  of  services,  including  trade  execution,  connectivity  solutions,  brokerage  services,  clearing,  trade 
compression and other post-trade services, information, and other back-office services to a broad assortment of financial and 
non-financial institutions.  

Our integrated platform is designed to provide flexibility to customers with regard to price discovery, execution and 
processing of transactions, and enables them to use our Voice, Hybrid, or, in many markets, Fully Electronic brokerage services 
in connection with transactions executed either OTC or through an exchange. Through our Fenics® group of electronic brands, 
we offer a number of market infrastructure and connectivity services, including our Fully Electronic marketplaces, and the Fully 
Electronic brokerage of certain products that also may trade via our Voice and Hybrid execution platforms. The full suite of 
Fenics®  offerings  includes  our  Fully  Electronic  and  Hybrid  brokerage,  market  data  and  related  information  services,  trade 
compression and other post-trade services, analytics related to financial instruments and markets, and other financial technology 
solutions.  Fenics®  brands  also  operate  under  the  names  Fenics®,  FMX™,  FMX  Futures  Exchange™,  Fenics  Markets 
Xchange™, Fenics Futures Exchange™, Fenics UST™, Fenics FX™, Fenics Repo™, Fenics Direct™, Fenics MID™, Fenics 
Market Data™, Fenics GO™, Fenics PortfolioMatch™, kACE2®, and Lucera®.

BGC, BGC Partners, BGC Trader, GFI, GFI Ginga, CreditMatch, Fenics, Fenics.com, FMX, Sunrise Brokers, Poten & 
Partners,  RP  Martin,  kACE2,  Capitalab,  Swaptioniser,  CBID,  and  Lucera  are  trademarks/service  marks,  and/or  registered 
trademarks/service marks of BGC Partners, Inc. and/or its affiliates.

Our  customers  include  many  of  the  world’s  largest  banks,  broker-dealers,  investment  banks,  trading  firms,  hedge 
funds, governments, corporations, and investment firms. We have dozens of offices globally in major markets including New 
York  and  London,  as  well  as  in  Bahrain,  Beijing,  Bogotá,  Brisbane,  Cape  Town,  Chicago,  Copenhagen,  Dubai,  Dublin, 
Frankfurt,  Geneva,  Hong  Kong,  Houston,  Johannesburg,  Madrid,  Manila,  Melbourne,  Mexico  City,  Miami,  Milan,  Monaco, 
Nyon, Paris, Perth, Rio de Janeiro, Santiago, São Paulo, Seoul, Shanghai, Singapore, Sydney, Tel Aviv, Tokyo, Toronto, and 
Zurich.

As  of  December  31,  2022,  we  had  1,985  brokers,  salespeople,  managers,  technology  professionals  and  other  front-

office personnel across our businesses.

Our History

Our business originated from one of the oldest and most established inter-dealer or wholesale brokerage franchises in 
the financial intermediary industry. Cantor started our wholesale intermediary brokerage operations in 1972. In 1996, Cantor 
launched its eSpeed system, which revolutionized the way government bonds are traded in the inter-dealer market by providing 
a Fully Electronic trading marketplace. eSpeed completed an initial public offering in 1999 and began trading on Nasdaq, yet it 
remained one of Cantor’s controlled subsidiaries.

Following  eSpeed’s  initial  public  offering,  Cantor  continued  to  operate  its  inter-dealer  Voice  and  Hybrid  brokerage 
businesses  separately  from  eSpeed.  In  August  2004,  Cantor  announced  the  reorganization  and  separation  of  its  inter-dealer 
Voice and Hybrid brokerage  businesses into  a subsidiary called  “BGC,” in  honor of B.  Gerald Cantor, the pioneer in screen 
brokerage services and fixed income market data products. In April 2008, BGC and certain other Cantor assets merged with and 
into eSpeed, and the combined company began operating under the name “BGC Partners, Inc.” 

In  June  2013,  we  sold  certain  assets  relating  to  our  U.S.  Treasury  benchmark  business  and  the  name  “eSpeed”  to 
Nasdaq. In 2011, we also acquired and built up a commercial real estate services business called “Newmark,” which we spun-
off to BGC’s stockholders in November 2018. In addition, we acquired and built-up an insurance brokerage business, which we 
sold in November 2021. We also acquired the Futures Exchange Group from Cantor in July 2021, which represents our futures 
exchange and related clearinghouse.

13

Prior  to  the  events  of  September  11,  2001,  our  financial  brokerage  business  was  widely  recognized  as  one  of  the 
leading  full-service  wholesale  financial  brokers  in  the  world,  with  a  rich  history  of  developing  innovative  technological  and 
financial  solutions.  After  September  11,  2001  and  the  loss  of  the  majority  of  our  U.S.-based  employees,  our  Voice  financial 
brokerage business operated primarily in Europe.

Since 2001, we have substantially rebuilt our U.S. presence and have continued to expand our global footprint through 
the  acquisition  and  integration  of  established  brokerage  companies  and  the  hiring  of  experienced  brokers.  Through  these 
actions, we have been able to expand our presence in key markets and position our business for sustained growth. Since 2015, 
our  acquisitions  have  included  those  of  GFI,  Sunrise  Brokers  Group,  Poten  &  Partners,  Perimeter  Markets  Inc.,  Lucera, 
Micromega  Securities  Proprietary  Limited,  Ginga  Petroleum,  Emerging  Markets  Bond  Exchange  Ltd,  Kalahari  Ltd,  Algomi, 
and the Futures Exchange Group.

Since the founding of eSpeed, we have continued to pioneer advances in electronic trading across the wholesale capital 
markets. Fenics, BGC’s financial brokerage and technology business, has grown significantly, supported by our investment in 
new trading technologies and platforms, as well as from trends of proliferating electronic execution across the capital markets 
and the demand for electronic data services. 

Fenics is the foundation for our Fully Electronic and associated Hybrid transactions across all asset classes. For the 
purposes of this document and subsequent SEC filings, all of our Fully Electronic businesses may be collectively referred to as 
“Fenics.”  These  offerings  include  Fully  Electronic  financial  brokerage  products  and  services,  as  well  as  offerings  in  market 
data, software solutions, and post-trade services across the Company. 

We currently operate electronic marketplaces in multiple financial markets through numerous products and services, 
including  Fenics,  BGC  Trader,  and  several  multi-asset  Hybrid  offerings  for  Voice  and  Fully  Electronic  execution,  including 
BGC’s Volume Match and GFI’s CreditMatch. We also operate a number of newer standalone, Fully Electronic platforms such 
as  Fenics  UST,  Fenics  FX,  Fenics  GO,  and  PortfolioMatch,  among  others.  These  electronic  marketplaces  offer  electronic 
trading  of  numerous  OTC  and  listed  financial  products,  including  government  bonds,  interest  rate  derivatives,  spot  foreign 
exchange,  foreign  exchange  derivatives,  corporate  bonds,  and  credit  derivatives.  We  believe  that  we  offer  a  comprehensive 
application providing volume, access, connectivity, speed of execution and ease of use. Our trading platform establishes a direct 
link between our brokers and customers and occupies valuable real estate on traders’ desktops, which is difficult to replicate. 

We believe that we can leverage our platform to offer Fully Electronic trading as additional products transition from 
Voice and Hybrid trading to Fully Electronic execution and additional electronic data services. We intend to continue to invest 
in  this  Fully  Electronic  business.  Going  forward,  we  expect  Fenics  to  become  an  even  more  valuable  part  of  BGC  as  it 
continues  to  grow.  We  continue  to  analyze  how  to  optimally  configure  our  Voice,  Hybrid  and  Fully  Electronic  businesses. 
Further,  we  continue  to  navigate  the  volatile  interest  rate  environment  experienced  over  the  last  year  and  the  impact  of  high 
interest rates on our trading volumes and spreads.

Corporate Conversion

On November 15, 2022, we and BGC Holdings, along with certain other entities, entered into a Corporate Conversion 
Agreement  in  order  to  reorganize  and  simplify  our  organizational  structure  by  converting  us  from  an  Up-C  to  a  “Full  C-
Corporation.” Upon completion of the Corporate Conversion Transactions, the stockholders of BGC Partners and the limited 
partners of BGC Holdings will participate in the economics of the BGC businesses through the same publicly traded corporate 
entity,  BGC  Group,  Inc.  By  simplifying  the  organizational  structure,  the  Corporate  Conversion  Transactions  are  intended  to 
improve transparency and reduce operational complexity.

The  Corporate  Conversion  Agreement  provides  that,  on  the  terms  and  subject  to  the  conditions  set  forth  in  the 
Corporate Conversion Agreement, BGC, BGC Holdings and their applicable subsidiaries will engage in the Mergers, pursuant 
to which:

•

•

each share of Class A Common Stock and Class B Common Stock outstanding at the effective time of the Mergers will
be converted into one share of Class A common stock and Class B common stock, respectively, of BGC Group, Inc.;

each exchangeable limited partnership unit of BGC Holdings held by Cantor or one of its subsidiaries and outstanding at
the effective time of the Mergers will be converted into one share of Class B common stock of BGC Group, Inc., subject
to the terms and conditions of the Corporate Conversion Agreement, provided that a portion of the shares of BGC Group,
Inc. Class B common stock issued to Cantor will exchange into BGC Group, Inc. Class A common stock in the event
that BGC Group, Inc. does not issue at least $75,000,000 in BGC Group, Inc. common stock in connection with certain
acquisition transactions prior to the seventh anniversary of the closing of the Mergers;

14

•

•

each  exchangeable  limited  partnership  unit  of  BGC  Holdings  not  held  by  Cantor  or  any  of  Cantor’s  subsidiaries  and
outstanding  at  the  effective  time  of  the  Mergers  will  be  converted  into  one  share  of  Class  A  common  stock  of  BGC
Group, Inc.; and

each  non-exchangeable  limited  partnership  unit  of  BGC  Holdings  will,  subject  to  certain  limited  exceptions,  be
converted into awards denominated in cash, restricted stock and/or RSUs of BGC Group, Inc., each as further set forth in
the Corporate Conversion Agreement.

In connection with the Corporate Conversion Transactions, BGC Group, Inc. is expected to assume our Equity Plan, 
which is expected to be amended and restated to increase the number of shares of Class A common stock reserved for the grant 
of awards thereunder, to make certain other additional changes in connection with the Corporate Conversion Transactions, and 
to change the name of the Equity Plan to the “BGC Group, Inc., Inc. Long Term Incentive Plan”. It is also expected that, in 
connection  with  the  Corporate  Conversion  Transactions,  BGC  Group,  Inc.  will  assume  our  Incentive  Plan,  as  appropriately 
amended and restated, and renamed the “BGC Group, Inc. Incentive Bonus Compensation Plan.” There will no longer be any 
need for our Participation Plan following the Corporate Conversion Transactions.

The  Corporate  Conversion  Agreement  has  been  approved  by  our  Board  of  Directors,  at  the  recommendation  of  the 
independent  Audit  Committee  and  the  independent  Compensation  Committee  of  the  Board  of  Directors,  sitting  jointly  (the 
“Joint Committee”). The Joint Committee has been advised by independent financial and legal advisors selected by the Joint 
Committee. Houlihan Lokey, Inc., as financial advisor, has provided a fairness opinion to the Joint Committee. 

In  the  first  quarter  of  2023,  we  received  preliminary  approvals  from  various  U.S.  and  international  regulatory 
authorities  relating  to  the  Corporate  Conversion  Transactions.  We  continue  to  seek  regulatory  approvals  where  required. 
Following receipt of such approvals, and subject to other customary closing conditions, including approval of our shareholders, 
which are expected to be satisfied, we expect to close the Corporate Conversion in the third quarter of 2023.

We expect to file a Registration Statement on Form S-4 in connection with the Corporate Conversion in the second 
quarter of 2023. We also expect to provide additional information with respect to our expected tax rates going forward as soon 
as practicable.

Overview of Our Products and Services

Financial Brokerage and Technology

Financial Brokerage

While  Voice  and  Hybrid  brokerage  revenues  still  represent  the  majority  of  BGC’s  overall  revenues,  we  continue  to 
convert  our  Voice  and  Hybrid  brokerage  to  our  higher  margin,  technology-driven  Fenics  business,  which  has  grown  to 
represent  25%  of  total  BGC  revenues  during  the  fourth  quarter  and  year  end  2022.  Over  the  past  several  years,  we  have 
invested  in,  and  developed,  new  state-of-the-art  trading  platforms,  including  Fenics  UST,  Fenics  FX,  Fenics  GO,  and 
PortfolioMatch,  across  Rates,  FX,  Equities,  and  Credit,  respectively.  We  have  also  invested  in,  and  deployed,  trading 
technology solutions across our entire business, including our Voice and Hybrid brokerage desks, with an aim to increase our 
average  broker  productivity  and  to  accelerate  trends  of  electronic  conversion.  Underpinning  our  efforts  to  automate  and 
electronify our overall brokerage business are macro trends across the capital markets, where the adoption of electronic trading 
has accelerated in recent years.

Beginning  in  2021,  we  began  to  categorize  our  Fenics  business  as  Fenics  Markets  and  Fenics  Growth  Platforms  as 

follows: 

•

•

Fenics Markets includes the Fully Electronic portion of BGC’s brokerage business, data, software and post-
trade revenues that are unrelated to Fenics Growth Platforms, as well as Fenics Integrated revenues. Fenics
Integrated, introduced during the second quarter of 2020, seamlessly integrates hybrid liquidity with customer
electronic  orders  either  by  GUI  and/or  API.  Desks  are  categorized  as  “Fenics  Integrated”  if  they  utilize
sufficient  levels  of  technology  such  that  significant  amounts  of  their  transactions  can  be  or  are  executed
without broker intervention and have expected pre-tax margins of at least 25%.

Fenics  Growth  Platforms  includes  Fenics  UST,  Fenics  GO,  Lucera,  Fenics  FX,  PortfolioMatch  and  other
newer  standalone  platforms.  Revenues  generated  from  data,  software  and  post-trade  attributable  to  Fenics
Growth Platforms are included within their related businesses.

We  have  leveraged  our  Hybrid  platform  to  provide  real-time  product  and  price  discovery  information  through 
applications such as BGC Trader. We also provide straight-through processing to our customers for an increasing number of 

15

products.  Our  end-to-end  solution  includes  real-time  and  auction-based  transaction  processing,  credit  and  risk  management 
tools and back-end processing and billing systems. Customers can access our trading application through our privately managed 
global high speed data network, over the Internet, or through third-party communication networks. 

On November 3, 2021, the Company announced FMX, which will include Fenics' U.S. Treasury business with a state-
of-the-art U.S. Rates futures platform. FMX is expected to complete all regulatory filings and submissions by the end of the 
first  quarter.  We  remain  on  track  for  a  soft  launch  of  our  futures  platform,  and  we  expect  to  announce  our  FMX  strategic 
investors  prior  to  the  launch.  For  more  information  about  FMX,  see  “Item  7.  Management’s  Discussion  and  Analysis  of 
Financial Condition and Results of Operations – Overview and Business Environment.” 

The following table identifies some of the key products that we broker:

Rates

Credit

Interest rate derivatives

Benchmark U.S. Treasuries

Off-the-run U.S. Treasuries

Other global government bonds

Agencies

Futures

Inflation derivatives

Repurchase agreements

Non-deliverable swaps

Interest rate swaps and options

Credit derivatives

Asset-backed securities

Convertibles

Corporate bonds

High yield bonds

Foreign Exchange

Emerging market bonds

Foreign exchange forwards and options

G-10

Emerging markets

Cross currencies

Exotic options

Spot FX

Emerging market FX options

Non-deliverable forwards

Energy and Commodities (OTC and listed derivatives)

Environmental products and emissions

Electricity

16

Equity Derivatives and Cash Equities

Natural Gas

Coal

Base and precious metals

Refined and crude oil

Soft commodities

Shipping brokerage

Equity derivatives

Cash equities

Index futures

Other derivatives and futures

Certain  categories  of  trades  settle  for  clearing  purposes  with  CF&Co,  one  of  our  affiliates.  CF&Co  is  a  member  of 
FINRA  and  the  Fixed  Income  Clearing  Corporation  (“FICC”),  a  subsidiary  of  the  Depository  Trust  &  Clearing  Corporation 
(“DTCC”). In addition, certain affiliated entities are subject to regulation by the CFTC, including CF&Co and BGCF. In certain 
products, we, CF&Co, BGC Financial and other affiliates act in a matched principal or principal capacity in markets by posting 
and/or  acting  upon  quotes  for  our  account.  Such  activity  is  intended,  among  other  things,  to  assist  us,  CF&Co  and  other 
affiliates in managing proprietary positions (including, but not limited to, those established as a result of combination of trades 
and errors), facilitating transactions, framing markets, adding liquidity, increasing commissions and attracting order flow.

Technology Offerings

Our market data, software, and post-trade offerings provide a range of trade lifecycle services which include market 
data  and  analytics  services,  infrastructure  and  connectivity  solutions,  and  post-trade  services,  such  as  trade  compression, 
matching and other post-trade optimization services. These businesses have highly recurring and compounding revenue bases, 
which are reported within our overall Fenics business. We have invested in the growth of our Data, Software and Post-trade 
businesses, which continue to scale and represent record levels of overall revenue contribution to our overall business.

Fenics Market Data™ is a supplier of real-time, tradable, indicative, end-of-day and historical market data. Our market 
data  product  suite  includes  fixed  income,  interest  rate  derivatives,  credit  derivatives,  foreign  exchange,  foreign  exchange 
options, money markets, energy, metals, and equity derivatives and structured market data products and services. The data is 
sourced from the Voice, Hybrid and Fully Electronic brokerage operations, across BGC, GFI, RP Martin and Fenics, among 
others. The data is made available to financial professionals, research analysts, compliance and surveillance departments, and 
other market participants via direct data feeds and BGC-hosted FTP environments, as well as via information vendors such as 
Bloomberg, Refinitiv, ICE Data Services, QUICK Corp., and other select specialist vendors. 

Through our Software Solutions business, we provide customized screen-based market solutions to both related and 
unrelated  parties.  Our  clients  are  able  to  develop  a  marketplace,  trade  with  their  customers  and  access  our  network  and  our 
intellectual  property.  We  can  add  advanced  functionality  to  enable  our  customers  to  distribute  branded  products  to  their 
customers  through  online  offerings  and  auctions,  including  private  and  reverse  auctions,  via  our  trading  platform  and  global 
network.

As  part  of  our  Software  Solutions  business,  our  Lucera®  brand  delivers  high-performance  technology  solutions 
designed  to  be  secure  and  scalable  and  to  power  demanding  financial  applications  across  several  offerings:  LumeFX® 
(distributed  FX  platform  with  managed  infrastructure  and  software  stack),  LumeMarkets™  (multi-asset  class  aggregation 
platform), Connect™ (global SDN for rapid provisioning of connectivity to counter-parties), and Compute™ (on-demand, co-
located compute services in key financial data centers).

Through  kACE2,  our  analytics  brand,  we  offer  a  derivative  price  discovery,  pricing  analysis,  risk  management  and 
trading  software  used  by  over  280  client  sites  in  35  countries.  Our  clients  include  mid-tier  banks,  financial  institutions  and 
corporate clients. Our Gateway module links our client base with their counterparties, trading venues and regulators, enabling 
clients to automate order flow, straight through processing, data distribution and regulatory reporting.

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Our Post-Trade Services include post-trade risk mitigation services provided using our Capitalab® brand. Capitalab, a 
division of BGC Brokers L.P. (“BGC Brokers”), provides compression, matching and optimization services that are designed to 
bring  greater  capital  and  operational  efficiency  to  the  global  derivatives  market.  Capitalab  assists  clients  in  managing  the 
growing cost of holding derivatives, while helping them to meet their regulatory mandates. Through the Swaptioniser® service 
for portfolio compression of Interest Rate Swaptions, Interest Rate Swaps, Caps and Floors, and through the Capitalab FX, with 
CLS service offering portfolio compression of FX Forwards, FX Swaps and FX Options, as well as Initial Margin Optimization 
services complete with fully automated trade processing and connection with LCH SwapAgent, Capitalab looks to simplify the 
complexities of managing large quantities of derivatives to promote sustainable growth and lower systemic risk and to improve 
resiliency in the industry.

Shipping Brokerage

In November 2018, we acquired Poten & Partners, a leading ship brokerage, consulting and business intelligence firm 
specializing  in  LNG,  tanker  and  LPG  markets.  Founded  over  80  years  ago  and  with  170  employees  worldwide,  Poten  & 
Partners provides its clients with valuable insight into the international oil, gas and shipping markets.

Energy Brokerage

In March 2019, we acquired Ginga Petroleum, which complemented our existing energy brokerage businesses within 
BGC,  GFI,  and  Poten  &  Partners.  Ginga  Petroleum  provides  a  comprehensive  range  of  broking  services  for  physical  and 
derivative energy products including naphtha, liquefied petroleum gas, fuel oil, biofuels, middle distillates, petrochemicals and 
gasoline.

Industry Recognition 

Our businesses have consistently won global industry awards and accolades in recognition of their performance and 

achievements. Recent examples include: 

•
•
•

•

•

•
•

BGC won Best Broker for Options at the FX Markets Best Bank Awards 2021
Capitalab was named Compression Service of the Year at the GlobalCapital Americas Derivatives Awards 2021
Fenics  Market  Data  named  Data  and  Analytics  Vendor  of  the  Year  —  Europe  &  Asia  at  the  Global  Derivatives
Awards 2022 by GlobalCapital
Fenics Market Data named Best Market Data Provider at WatersTechnology Inside Market Data & Inside Reference
Data Awards 2022
Fenics  Market  Data  named  Data  Provider  of  the  Year  at  The  Asia  Capital  Markets  Awards  2022  by  FOW  Global
Investor Group
Fenics GO was named OTC Trading Platform of the Year at the Asia Risk Awards 2022 by Risk.net
Capitalab was named OTC Infrastructure Service of the Year by Risk.net and Risk magazine at the Risk Awards 2021

Customers and Clients

We  primarily  serve  the  wholesale  financial  markets,  with  clients  including  many  of  the  world’s  largest  banks, 
brokerage  houses,  investment  firms,  hedge  funds,  and  investment  banks.  Customers  using  our  products  and  services  also 
include  professional  trading  firms,  futures  commission  merchants,  and  other  professional  market  participants  and  financial 
institutions. Our market data products and services are available through many platforms and are available to a wide variety of 
capital  market  participants,  including  banks,  investment  banks,  brokerage  firms,  asset  managers,  hedge  funds,  investment 
analysts, compliance and surveillance professionals and financial advisors. We also license our intellectual property portfolio 
and offerings in Software Solutions to various financial markets participants. For the year ended December 31, 2022, our top 
ten  customers,  collectively,  accounted  for  approximately  31.0%  of  our  total  revenue  on  a  consolidated  basis,  and  our  largest 
customer accounted for approximately 4.7% of our total revenue on a consolidated basis.

Sales and Marketing

Our  brokers  and  salespeople  are  the  primary  marketing  and  sales  resources  to  our  customers.  Thus,  our  sales  and 
marketing  program  is  aimed  at  enhancing  the  ability  of  our  brokers  to  cross-sell  effectively  in  addition  to  informing  our 
customers about our product and service offerings. We also employ product teams and business development professionals. We 
leverage our customer relationships through a variety of direct marketing and sales initiatives and build and enhance our brand 
image through marketing and communications campaigns targeted at a diverse audience, including traders, potential partners 

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and the investor and media communities. We may also market to our existing and prospective customers through a variety of 
co-marketing/co-branding initiatives with our partners.

Our  brokerage  product  team  is  composed  of  product  managers  who  are  each  responsible  for  a  specific  part  of  our 
brokerage business. The product managers seek to ensure that our brokers, across all regions, have access to technical expertise, 
support  and  multiple  execution  methods  in  order  to  grow  and  market  their  business.  This  approach  of  combining  marketing 
with our product and service strategy has enabled us to turn innovative ideas into both deliverable Fully Electronic and Hybrid 
solutions.

Our  team  of  business  development  professionals  is  responsible  for  growing  our  global  footprint  through  raising 
awareness of our products and services. The business development team markets our products and services to new and existing 
customers. As part of this process, they analyze existing levels of business with these entities in order to identify potential areas 
of growth and also to cross-sell our multiple offerings.

Our market data, software solutions, and post-trade products and services are promoted to our existing and prospective 

customers through a combination of sales, marketing and co-marketing campaigns.

These  efforts  are  supported  by  a  central  team  of  professionals  across  marketing,  design,  event  planning,  public 

relations, and corporate communications.

Technology

Pre-Trade Technology. Our financial brokers use a suite of pricing and analytical tools that have been developed both 
in-house and in cooperation with specialist software suppliers. The pre-trade software suite combines proprietary market data, 
pricing  and  calculation  libraries,  together  with  those  outsourced  from  external  providers.  The  tools  in  turn  publish  to  a 
normalized, global market data distribution platform, allowing prices and rates to be distributed to our proprietary network, data 
vendor pages, secure websites and trading applications as indicative pricing.

Inter-Dealer and Wholesale Trading Technology. We utilize a sophisticated proprietary electronic trading platform to 
provide execution and market data services to our customers. The services are available through our proprietary API, FIX and a 
multi-asset  proprietary  trading  platform,  operating  under  brands  including  BGC  Trader™,  CreditMatch®,  Fenics®,  FMX™ 
GFI  ForexMatch®,  BGCForex™,  BGCCredit™,  BGCRates™,  FenicsFX™,  FenicsUST™,  FenicsDirect™,  Fenics  GO™, 
MidFX, GBX™, and Fenics Invitations™. This platform presently supports a wide and constantly expanding range of products 
and  services,  which  includes  FX  options,  corporate  bonds,  credit  derivatives,  OTC  interest  rate  derivatives  in  multiple 
currencies, US REPO, TIPS, MBS, government bonds, spot FX, NDFs, and other products. Every product on the platform is 
supported in either view-only, Hybrid/managed or Fully Electronic mode, and can be transitioned from one mode to the next in 
response to market demands. The flexible BGC technology stack is designed to support feature-rich workflows required by the 
Hybrid mode as well as delivering high throughput and low transaction latency required by the Fully Electronic mode. Trades 
executed  by  our  customers  in  any  mode  are,  when  applicable,  eligible  for  immediate  electronic  confirmation  through  direct 
straight-through processing (“STP”) links as well as STP hubs. The BGC trading platform services are operated out of several 
globally  distributed  data  centers  and  delivered  to  customers  over  BGC’s  global  private  network,  third-party  connectivity 
providers  as  well  as  the  Internet.  BGC’s  proprietary  graphical  user  interfaces  and  the  API/FIX  connectivity  are  deployed  at 
hundreds of major banks and institutions and service thousands of users.

Post-Trade Straight Through Processing Technology. Our platform automates previously paper and telephone-based 
transaction  processing,  confirmation  and  other  functions,  substantially  improving  and  reducing  the  cost  of  many  of  our 
customers’ back offices and enabling STP. In addition to our own system, confirmation and trade processing is also available 
through third-party hubs, including MarkitWIRE, ICElink, Reuters RTNS, and STP in FIX for various banks.

We  have  electronic  connections  to  most  mainstream  clearinghouses,  including  DTCC,  CLS  Group,  Euroclear, 
Clearstream, Monte Titoli, LCH.Clearnet, Eurex Clearing, CME Clearing and the Options Clearing Corporation (“OCC”). As 
more products become centrally cleared, and as our customers request that we use a particular venue, we expect to expand the 
number of clearinghouses to which we connect in the future.

Systems  Architecture.  Our  systems  consist  of  layered  components,  which  provide  matching,  credit  management, 
market data distribution, position reporting, customer display and customer integration. The private network currently operates 
from six concurrent core data centers (three of which are in the U.K., one each in Trumbull, Connecticut, Weehawken, New 
Jersey and Secaucus, New Jersey) and many hub cities throughout the world acting as distribution points for all private network 
customers.  The  redundant  structure  of  our  system  provides  multiple  backup  paths  and  re-routing  of  data  transmission  in  the 
event of failure.

19

In addition to our own network system, we also receive and distribute secure trading information from customers using 
the  services  of  multiple,  major  Internet  service  providers  throughout  the  world.  These  connections  enable  us  to  offer  our 
products and services via the Internet to our global customers.

Software Development

We devote substantial efforts to the development and improvement of our Hybrid and Fully Electronic marketplaces 
and  licensed  software  products  and  services.  We  work  with  our  customers  to  identify  their  specific  requirements  and  make 
modifications  to  our  software,  network  distribution  systems  and  technologies  that  are  responsive  to  those  needs.  Our  efforts 
focus on internal development, strategic partnering, acquisitions and licensing.

Our Intellectual Property

We regard our technology and intellectual property rights, including our brands, as a critical part of our business. We 
hold various trademarks, trade dress and trade names and rely on a combination of patent, copyright, trademark, service mark 
and  trade  secret  laws,  as  well  as  contractual  restrictions,  to  establish  and  protect  our  intellectual  property  rights.  We  own 
numerous  domain  names  and  have  registered  numerous  trademarks  and/or  service  marks  in  the  United  States  and  foreign 
countries. Our trademark registrations must be renewed periodically, and, in most jurisdictions, every 10 years.

We  have  adopted  a  comprehensive  intellectual  property  program  to  protect  our  proprietary  technology  and 
innovations.  We  currently  have  licenses  covering  various  patents  from  related  parties.  We  also  have  agreements  to  license 
technology  that  may  be  covered  by  several  pending  and/or  issued  U.S.  patent  applications  relating  to  various  aspects  of  our 
electronic  trading  systems,  including  both  functional  and  design  aspects.  We  have  filed  a  number  of  patent  applications  to 
further protect our proprietary technology and innovations and have received patents for some of those applications. We will 
continue to file additional patent applications on new inventions, as appropriate, demonstrating our commitment to technology 
and innovation.

Our patent portfolio continues to grow, and we continue to look for opportunities to license and/or otherwise monetize 

the patents in our portfolio.

Competition

We encounter competition in all aspects of our business. We compete primarily with other inter-dealer or wholesale 
financial  brokers  for  market  share,  brokers,  salespeople,  and  suitable  acquisition  candidates.  Our  existing  and  potential 
competitors  are  numerous  and  include  other  wholesale  financial  brokerage  and  inter-dealer  brokerage  firms,  multi-dealer 
trading  companies,  financial  technology  companies,  market  data  and  information  vendors,  securities  and  futures  exchanges, 
electronic  communications  networks,  crossing  systems,  software  companies,  financial  trading  consortia,  shipping  brokers, 
business-to-business marketplace infrastructure companies, as well as niche market energy and other Internet-based commodity 
trading systems.

Inter-Dealer or Wholesale Financial Brokers

We primarily compete with four publicly traded, diversified inter-dealer and/or wholesale financial brokers. These are 
TP  ICAP,  Tradition,  Dealerweb,  an  inter-dealer  and  wholesale  financial  brokerage  business  within  Tradeweb  Markets,  Inc. 
(“Tradeweb”),  and  XP  Inc.'s  fixed  income  and  FX  inter-dealer  broking  business.  Other  competitors  include  a  number  of 
smaller, private firms that tend to specialize in specific product areas or geographies, such as Marex Spectron Group Limited in 
energy and commodities, and Gottex Brokers Holding SA, which is an affiliate of Tradition, in OTC interest rate derivatives. 

Demand for wholesale brokerage services is directly affected by the overall level of economic activity, international 
and domestic economic and political conditions, including central bank policies, broad trends in business and finance, including 
employment  levels,  the  level  and  volatility  of  interest  rates,  changes  in  and  uncertainty  regarding  tax  laws  and  substantial 
fluctuations  in  the  volume  and  price  levels  of  securities  transactions.  Other  significant  factors  affecting  competition  in  the 
brokerage industry are the quality and ability of professional personnel, the depth and pricing efficiency of the markets in which 
the  brokers  transact,  the  strength  of  the  technology  used  to  service  and  execute  on  those  markets  and  the  relative  prices  of 
products and services offered by the brokers and by competing markets and trading processes. 

Business  development  is  another  highly  competitive  component  of  wholesale  financial  brokerage.  During  the 
COVID-19  pandemic,  traditional  business  development  efforts  were  adversely  impacted  for  both  us  and  our  competitors. 
Competition  for  new  and  existing  client  business  remains  high,  as  does  the  importance  of  developing  new  ways  to  execute 
successful business development efforts in the current environment.

20

Market Data, Financial Software and Post-Trade Solution Vendors 

The majority of our large inter-dealer and wholesale financial broker competitors also sell proprietary market data and 
information,  which  competes  with  our  market  data  offerings.  In  addition  to  direct  sales,  we  resell  market  data  through  large 
market data and information providers. These companies have established significant presences on the vast majority of trading 
desks in our industry. Some of these market data and information providers, such as Bloomberg L.P. and Refinitiv, include in 
their product mix electronic trading and execution of both OTC and listed products in addition to their traditional market data 
offerings.  In  January  2021,  Refinitiv  was  acquired  by  the  London  Stock  Exchange  Group  (“LSEG”),  which  also  sells 
proprietary market data and information.

Growth  in  new  trading  venues  has  led  to  fragmentation  of  liquidity  across  the  financial  markets.  Our  software 
solutions  business  helps  aggregate  liquidity  and  connect  counterparties  across  these  marketplaces.  We  compete  with  other 
market infrastructure and connectivity providers, such as Pico, ION Group and Broadway Technology in this space.

Our post-trade services that offer derivative compression, matching and optimization services operate in an industry 
which  has  benefitted  from  increased  regulatory  requirements.  Competition  in  this  space  includes  OSSTRA,  a  joint  venture 
between  CME  Group  Inc.  and  IHS  Markit  Ltd,  Parameta  Solutions,  TP  ICAP’s  data  and  analytics  business,  Quantile  Group 
Limited  (“Quantile”)  and  Capitolis.  Quantile  was  acquired  by  the  LSEG  in  December  2020  for  a  maximum  aggregate 
consideration of £274 million.

Exchanges and Other Trading Platforms

Although our business will often use exchanges to execute transactions brokered in both listed and OTC markets, we 
believe that exchanges have sought and will seek to migrate products traditionally traded in OTC markets by inter-dealer and/or 
wholesale financial brokers to exchanges. However, we believe that when a product goes from OTC to exchange-traded, the 
underlying or related OTC market often continues to experience growth in line with the growth of the exchange-traded contract. 
In  addition,  ICE  operates  both  regulated  exchanges  and  OTC  execution  services,  and  in  the  latter,  it  competes  directly  with 
inter-dealer  and/or  wholesale  financial  brokers  in  energy,  commodities,  and  credit  products.  ICE  entered  these  OTC  markets 
primarily  by  acquiring  independent  OTC  brokers.  We  also  compete  with  CME  via  its  acquisition  of  NEX  and  our  expected 
launch of U.S. Rates Futures in the second quarter of 2023. We believe that it is likely ICE, CME, or other exchange operators 
may seek to compete with us in the future by acquiring other such brokers, by creating listed products designed to mimic OTC 
products, or through other means. 

In  addition  to  exchanges,  other  electronic  trading  platforms  which  primarily  operate  in  the  dealer-to-client  markets, 
including  those  run  by  MarketAxess  Holdings  Inc.  (“MarketAxess”)  and  Tradeweb  now  compete  with  us  in  the  inter-dealer 
markets. At the same time, we have begun to offer an increasing number of our products and services to the customers of firms 
like MarketAxess and Tradeweb. Further, ICE also operates a SEF, as does Tradeweb, and we expect that other exchanges and 
trading platforms may also seek to do so. 

Banks and Broker-Dealers

Banks and broker-dealers have in the past created and/or funded consortia to compete with exchanges and inter-dealer 
brokers. For example, CME’s wholesale businesses for fully electronic trading of U.S. Treasuries and spot foreign exchange 
both began as dealer-owned consortia before being acquired by ICAP plc, the predecessor company to CME’s NEX platform. 
An  example  of  a  current  and  similar  consortium  is  Tradeweb.  Several  large  banks  continue  to  hold  public  equity  stakes  in 
Tradeweb.  Refinitiv,  which  was  acquired  by  the  LSEG  in  January  2021,  is  Tradeweb’s  single  largest  shareholder.  Although 
Tradeweb operates primarily as a dealer to customer platform, some of its offerings include a voice and electronic inter-dealer 
platform  and  a  SEF.  Tradeweb’s  management  has  previously  said  that  it  would  like  to  further  expand  into  other  inter-dealer 
markets, and in June 2021, it acquired Nasdaq’s U.S. fixed income electronic trading platform, formerly known as eSpeed. In 
2013, BGC sold the eSpeed platform to Nasdaq, and subsequently launched a competing platform, Fenics UST.

In addition, certain investment management firms that traditionally deal with banks and broker-dealers have expressed 
a desire to have direct access to certain parts of the wholesale financial markets via firms such as ours. We believe that over 
time, interdealer-brokers will therefore gain a growing percentage of the sales and trading market currently dominated by banks 
and  broker-dealers.  Since  their  collective  revenues  are  many  times  those  of  the  global  inter-dealer  market,  we  believe  that 
gaining  even  a  small  share  of  banks  and  broker-dealers’  revenues  could  lead  to  a  meaningful  increase  in  our  revenues. 
Additionally,  wholesale  financial  brokers  have  aimed  to  grow  their  agency  brokerage  businesses,  which  typically  serve  a 
broader  client  set,  including  banks,  broker-dealers,  and  institutional  clients,  such  as  TP  ICAP’s  acquisition  of  Liquidnet  in 
March 2021. 

21

Overall, we believe that we may also face future competition from market data and technology companies and some 
securities  brokerage  firms,  some  of  which  are  currently  our  customers,  as  well  as  from  any  future  strategic  alliances,  joint 
ventures or other partnerships created by one or more of our potential or existing competitors.

Seasonality

Traditionally, the financial markets around the world generally experience lower volume during the late summer and at 
the end of the year due to a slowdown in the business environment around holiday seasons. Therefore, our revenues tend to be 
strongest in the first quarter and lowest in the second half of the year. For both of the years ended December 31, 2022 and 2021, 
we earned approximately 28.2% of our revenues in the first quarter.

Partnership Overview

Many of our key brokers, salespeople, managers, technology professionals and other front office professionals have a 
substantial  amount  of  their  own  capital  invested  in  our  business,  aligning  their  interests  with  our  stockholders.  Limited 
partnership  interests  in  BGC  Holdings  and  Newmark  Holdings  (received  in  connection  with  the  Spin-Off)  consist  of:  (i) 
“founding/working partner units” held by limited partners who are employees; (ii) “limited partnership units,” which consist of 
a variety of units that are generally held by employees such as REUs, RPUs, PSUs, PSIs, PSEs, HDUs, U.K. LPUs, APSUs, 
APSIs, APSEs, AREUs, ARPUs and NPSUs; (iii) “Cantor units” which are the exchangeable limited partnership interests held 
by  Cantor  entities;  and  (iv)  Preferred  Units,  which  are  working  partner  units  that  may  be  awarded  to  holders  of,  or 
contemporaneous  with,  the  grant  of  certain  limited  partnership  units.  For  further  details,  see  “Our  Organizational  Structure.” 
NPSUs are partnership units that are not entitled to participate in partnership distributions, not allocated any items of profit or 
loss and may not be exchangeable into shares of our common stock. On terms and conditions determined by us as the general 
partner  of  BGC  Holdings  in  our  sole  discretion,  NPSUs  are  expected  to  be  replaced  by  a  grant  of  limited  partnership  units, 
which may be set forth in a written schedule and subject to additional terms and conditions, provided that, in all circumstances 
such grant of limited partnership units shall be contingent upon our, including our affiliates, earning, in aggregate, at least $5 
million in gross revenues in the calendar quarter in which the applicable award of limited partnership units is to be granted. In 
addition, we have N Units which are non-distributing partnership units that may not be allocated any item of profit or loss and 
may  not  be  made  exchangeable  into  shares  of  our  Class  A  common  stock.  Subject  to  the  approval  of  the  Compensation 
Committee  or  its  designee,  the  N  Units  are  expected  to  be  converted  into  the  underlying  unit  type  (i.e.,  an  NREU  will  be 
converted into an REU) and then participate in distributions from BGC Holdings, subject to terms and conditions determined by 
us as the general partner of BGC Holdings in our sole discretion, including that the recipient continue to provide substantial 
services to us and comply with his or her partnership obligations. 

We  believe  that  our  emphasis  on  equity-based  compensation  promotes  recruitment,  motivation  of  our  brokers  and 
employees and alignment of interest with shareholders. Virtually all of our executives and front-office employees have equity 
or  partnership  stakes  in  us  and  our  subsidiaries  and  generally  receive  grants  of  deferred  equity  or  LPUs  as  part  of  their 
compensation.  A  significant  percentage  of  BGC’s  fully  diluted  shares  are  owned  by  its  executives,  partners  and  employees. 
While BGC Holdings limited partnership interests generally entitle our partners to participate in distributions of income from 
the  operations  of  our  business,  upon  leaving  BGC  Holdings  (or  upon  any  other  redemption  or  purchase  of  such  limited 
partnership interests as described below), any such partners are only entitled to receive over time, and provided he or she does 
not violate certain partner obligations, an amount for his or her BGC Holdings limited partnership interests that reflects such 
partner’s capital account or compensatory grant awards, excluding any goodwill or going concern value of our business unless 
Cantor, in the case of the founding partners, and we, as the general partner of BGC Holdings, otherwise determine. We may 
effect  redemptions  of  BGC  Holdings  LPUs  and  FPUs,  and  concurrently  grant  shares  of  our  Class  A  common  stock,  or  may 
grant our partners the right to exchange their BGC Holdings limited partnership interests for shares of our Class A common 
stock (if, in the case of founding partners, Cantor so determines and, in the case of working partners and limited partnership unit 
holders, we, as the BGC Holdings general partner, with Cantor’s consent, determine otherwise) and thereby realize any higher 
value  associated  with  our  Class  A  common  stock.  Similar  provisions  with  respect  to  Newmark  Holdings  limited  partnership 
interests are contained in the Newmark Holdings limited partnership agreement. We believe that having invested in us, partners 
feel  a  sense  of  responsibility  for  the  health  and  performance  of  our  business  and  have  a  strong  incentive  to  maximize  our 
revenues and profitability. 

Impact of Corporate Conversion

In  connection  with  the  Corporate  Conversion  Transactions,  each  exchangeable  limited  partnership  unit  of  BGC 
Holdings held by Cantor or one of its subsidiaries and outstanding at the effective time of the Mergers will be converted into 
one  share  of  Class  B  common  stock  of  BGC  Group,  Inc.,  subject  to  the  terms  and  conditions  of  the  Corporate  Conversion 
Agreement, provided that a portion of the shares of BGC Group, Inc. Class B common stock issued to Cantor will exchange 

22

into BGC Group, Inc. Class A common stock in the event that BGC Group, Inc. does not issue at least $75,000,000 in BGC 
Group, Inc. common stock in connection with certain acquisition transactions prior to the seventh anniversary of the closing of 
the Mergers; each exchangeable limited partnership unit of BGC Holdings not held by Cantor or any of Cantor’s subsidiaries 
and outstanding at the effective time of the Mergers will be converted into one share of Class A common stock of BGC Group, 
Inc.;  and  each  non-exchangeable  limited  partnership  unit  of  BGC  Holdings  will,  subject  to  certain  limited  exceptions,  be 
converted into awards denominated in cash, restricted stock and/or RSUs of BGC Group, Inc., each as further set forth in the 
Corporate Conversion Agreement. See “—Our History—Corporate Conversion.”

Relationship Between BGC Partners and Cantor

See  "—Our  Organizational  Structure"  and  “Risk  Factors  —  Risks  Related  to  our  Relationship  with  Cantor  and  its 

Affiliates.”

Debt

For information about our credit agreements and senior notes, see “Item 7 — Management’s Discussion and Analysis 

of Financial Condition and Results of Operations — Liquidity and Capital Resources.”

Regulation

U.S. Regulation

The financial services industry in the United States is subject to extensive regulation under both federal and state laws. 
As registered broker-dealers, introducing brokers and FCMs, and other types of regulated entities as described below, certain of 
our subsidiaries are subject to laws and regulations which cover all aspects of financial services, including sales methods, trade 
practices,  use  and  safekeeping  of  customers’  funds  and  securities,  minimum  capital  requirements,  recordkeeping,  business 
practices,  securities  lending  and  financing  of  securities  purchases  and  the  conduct  of  associated  persons.  We  and  our 
subsidiaries  also  are  subject  to  the  various  anti-fraud  provisions  of  the  Securities  Act,  the  Exchange  Act,  the  Commodity 
Exchange Act, certain state securities laws and the rules and regulations thereunder. We also may be subject to vicarious and 
controlling person liability for the activities of our subsidiaries and our officers, employees and affiliated persons.

The  SEC  is  the  federal  agency  primarily  responsible  for  the  administration  of  federal  securities  laws,  including 
adopting rules and regulations applicable to broker-dealers (other than government securities broker-dealers) and enforcing both 
its  rules  regarding  broker-dealers  and  the  Treasury’s  rules  regarding  government  securities  broker-dealers.  In  addition,  we 
operate a number of platforms that are governed pursuant to SEC Regulation ATS. Broker-dealers are also subject to regulation 
by state securities administrators in those states in which they conduct business or have registered to do business. In addition, 
Treasury rules relating to trading government securities apply to such activities when engaged in by broker-dealers. The CFTC 
is the federal agency primarily responsible for the administration of federal commodities future laws and other acts, including 
the adoption of rules applicable to FCMs, Designated Contract Markets (“DCM”) and SEFs such as BGC Derivative Markets, 
L.P. (“BGC Derivative Markets”) and GFI Swaps Exchange LLC.

Much  of  the  regulation  of  broker-dealers’  operations  in  the  United  States  has  been  delegated  to  self-regulatory 
organizations.  These  self-regulatory  organizations  adopt  rules  (which  are  subject  to  approval  by  the  SEC)  that  govern  the 
operations  of  broker-dealers  and  government  securities  broker-dealers  and  conduct  periodic  inspections  and  examinations  of 
their operations. In the case of our U.S. broker-dealer subsidiaries, the principal self-regulatory organization is FINRA. FINRA 
was formed from the consolidation of the NASD’s member regulation operations and the regulatory arm of the NYSE Group to 
act  as  the  self-regulatory  organization  for  all  broker-dealers  doing  business  within  the  United  States.  Accordingly,  our  U.S. 
broker-dealer subsidiaries are subject to both scheduled and unscheduled examinations by the SEC and FINRA. In our futures-
related activities, our subsidiaries are also subject to the rules of the CFTC, futures exchanges of which they are members and 
the NFA, a futures self-regulatory organization. 

The changing regulatory environment, new laws that may be passed by Congress, and rules that may be promulgated 
by  the  SEC,  the  Treasury,  the  Federal  Reserve  Bank  of  New  York,  the  CFTC,  the  NFA,  FINRA  and  other  self-regulatory 
organizations,  or  changes  in  the  interpretation  or  enforcement  of  existing  laws  and  rules,  if  adopted,  may  directly  affect  our 
operations and profitability and those of our competitors and customers and of the securities markets in which we participate in 
a way that could adversely affect our business.

The SEC, self-regulatory organizations and state securities administrators conduct informal and formal investigations 
of  possible  improprieties  or  illegal  action  by  broker-dealers  and  their  “associated  persons,”  which  could  be  followed  by  the 
institution of administrative, civil and/or criminal proceedings against broker-dealers and/or “associated persons.” Among the 

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sanctions  that  may  result  if  administrative,  civil  or  criminal  proceedings  were  ever  instituted  against  us  or  our  “associated 
persons” are injunctions, censure, fines, penalties, the issuance of cease-and-desist orders or suspension or expulsion from the 
industry  and,  in  rare  instances,  even  imprisonment.  The  principal  purpose  of  regulating  and  disciplining  broker-dealers  is  to 
protect customers and the securities markets, rather than to protect broker-dealers or their creditors or equity holders. From time 
to time, our “associated persons” have been and are subject to routine investigations, none of which to date have had a material 
adverse effect on our business, financial condition, results of operations or prospects.

Regulators  and  legislators  in  the  U.S.  and  EU  continue  to  craft  new  laws  and  regulations  for  the  global  OTC 
derivatives  markets.  The  Dodd-Frank  Act  mandates  or  encourages  several  reforms  regarding  derivatives,  including  new 
regulations  for  swaps  markets  creating  impartiality  considerations,  additional  pre-  and  post-trade  transparency  requirements, 
and heightened collateral or capital standards, as well as recommendations for the obligatory use of central clearing for most 
standardized derivatives. The law also requires that standardized OTC derivatives be traded in an open and non-exclusionary 
manner on a DCM or a SEF. 

BGC  Derivative  Markets  and  GFI  Swaps  Exchange,  our  subsidiaries,  operate  as  SEFs.  Mandatory  Dodd-Frank  Act 
compliant execution on SEFs by eligible U.S. persons commenced in February 2014 for “made available to trade” products, and 
a  wide  range  of  other  rules  relating  to  the  execution  and  clearing  of  derivative  products  were  finalized  with  implementation 
periods in 2016 and beyond. We also own ELX, which became a dormant contract market on July 1, 2017 and in July 2021, we 
completed the purchase of the CX Futures Exchange (now FMX Futures Exchange) from Cantor, which represents our futures 
exchange  and  related  clearinghouse.  As  these  rules  require  authorized  execution  facilities  to  maintain  robust  front-end  and 
back-office IT capabilities and to make large and ongoing technology investments, and because these execution facilities may 
be  supported  by  a  variety  of  voice  and  auction-based  execution  methodologies,  we  expect  our  Hybrid  and  Fully  Electronic 
trading capability to perform strongly in such an environment.

On  June  25,  2020,  the  CFTC  approved  a  final  rule  prohibiting  post-trade  name  give-up  for  swaps  executed, 
prearranged or prenegotiated anonymously on or pursuant to the rules of a SEF and intended to be cleared. The rule provides 
exemptions for package transactions that include a component transaction that is not a swap that is intended to be cleared. The 
rule  went  into  effect  on  November  1,  2020  for  swaps  subject  to  the  trade  execution  requirement  under  the  Commodity 
Exchange  Act  Section  2(h)(8)  and  July  5,  2021  for  swaps  not  subject  to  the  trade  execution  requirement,  but  intended  to  be 
cleared.

On  April  6,  2022,  the  SEC  proposed  Rules  for  the  Registration  and  Regulation  of  Security-Based  Swap  Execution 
Facilities. The SEC proposed new Regulation SE under the Exchange Act to create a regime for the registration and regulation 
of  SBSEFs.  The  new  regulatory  framework  was  one  of  the  major  reforms  required  under  Title  VII  of  the  Dodd-Frank  Act 
relating to the over-the-counter derivatives market.

In developing this proposal, the SEC sought to harmonize as closely as practicable with parallel rules of the CFTC that 
govern SEFs and swap execution generally. The proposal was published on SEC.gov and in the Federal Register with a public 
comment  period  of  60  days.  If  adopted  as  proposed,  the  proposal  would  implement  the  Exchange  Act’s  trade  execution 
requirement for security-based swaps and address the cross-border application of that requirement; implement Section 765 of 
the  Dodd-Frank  Act  to  mitigate  conflicts  of  interest  at  SBSEFs  and  national  securities  exchanges  that  trade  security-based 
swaps; and promote consistency between proposed Regulation SE and existing rules under the Exchange Act.

In  addition,  several  state  laws  that  have  recently  come  to  into  effect,  and  may  come  into  effect  in  the  future,  have 

created and will create new compliance obligations in related to personal data.

While  we  continue  to  have  a  compliance  framework  in  place  to  comply  with  both  existing  and  proposed  rules  and 
regulations, it is possible that the existing regulatory framework may be amended, which amendments could have a positive or 
negative impact on our business, financial condition, results of operations and prospects. 

Recent Settlements

On September 29, 2022, one of the Company’s subsidiaries, CX Futures Exchange, L.P. a/k/a FMX Futures Exchange, 
L.P. (CX) a designated contract market, reached a settlement with the CFTC. The CFTC alleged that from September 2017 to
August  2021,  CX  failed  to  comply  with  certain  system  safeguards  regulations.  The  CFTC  also  alleged  that  from  November
2017 to June 2020, CX failed to report certain data for approximately 200,000 options transactions to the CFTC, and that from
November 2017 to August 2022, CX failed to report certain data for the same transactions to a swap data repository. The CFTC
further  alleged  that  in  connection  with  a  2017  request  for  a  no-action  letter  regarding  its  swap  data  repository  reporting
obligations, CX represented to CFTC staff that its trading data was being reported to the CFTC when it had not been reported.
In connection with the settlement, CX paid a $6.5 million civil monetary penalty, and agreed to comply with certain conditions
and undertakings, including that CX back-report all required swap reporting data. A criminal penalty was not imposed.

24

U.K. Regulation

The FCA is the relevant statutory regulator for the United Kingdom financial services industry. The FCA’s objectives 
are to protect customers and financial markets, protect and enhance the integrity of the United Kingdom financial system and 
promote  competition  between  financial  services  providers.  It  has  broad  rule-making,  investigative  and  enforcement  powers 
derived  from  the  Financial  Services  and  Markets  Act  2000  and  subsequent  and  derivative  legislation  and  regulations.  The 
FCA’s  recent  focus  has  been  on  financial  and  operational  resilience,  and  promoting  market  integrity.  Currently,  we  have 
subsidiaries regulated by the FCA (some include BGC Brokers L.P., GFI Securities Limited, and GFI Brokers Limited). 

From time to time, we have been and are subject to periodic examinations, inspections and investigations, including 
periodic risk assessment and related reviews of our U.K. group. As a result of such reviews, we may be required to include or 
enhance  certain  regulatory  structures  and  frameworks  in  our  operating  procedures,  systems  and  controls.  When  acquiring 
control of regulated entities, we may be required to obtain the consent of their applicable regulator.

The  FCA  has  in  the  past  developed  a  practice  of  requiring  senior  officers  of  regulated  firms  to  provide  individual 
attestations or undertakings as to the status of a firm’s control environment, compliance with specific rules and regulations, or 
the  completion  of  required  tasks.  Officers  of  BGC  Brokers  L.P.  and  GFI  Brokers  Limited  have  previously  given  such 
attestations  or  undertakings  and  may  do  so  again  in  the  future.  Similarly,  the  FCA  can  seek  a  voluntary  requirement  notice, 
which is a voluntary undertaking on behalf of a firm that is made publicly available on the FCA’s website. The SMCR came 
into effect in the U.K. on December 9, 2019 for FCA solo-regulated firms. Personal accountability requirements fall on senior 
managers, and a wider population of U.K. staff are subject to certification requirements and conduct rules. SMCR has increased 
the cost of compliance and will potentially increase financial penalties for non-compliance.

Recent Settlements

On December 8, 2022, certain of the Company’s U.K. subsidiaries, BGC Brokers LP, GFI Brokers Limited and GFI 
Securities  Limited,  were  fined  a  total  US$5.8  million,  or  GBP  4.8  million,  in  relation  to  what  the  FCA  characterized  as  a 
“legacy matter for the Firms”, for failings in relation to aspects of their trade surveillance systems during the period July 2016 
to January 2018. The firms engaged in a remediation process during the course of late 2017 and much of 2018, during which 
the surveillance systems and controls were significantly enhanced. The fines are therefore in respect of matters that have been 
fully remediated for some years now.

European Regulation

The  EMIR  Directive  on  OTC  derivatives,  central  counterparties  and  trade  repositories  was  adopted  in  July  2012. 
EMIR fulfills several of the EU’s G20 commitments to reform OTC derivatives markets. The reforms are designed to reduce 
systemic risk and bring more transparency to both OTC and listed derivatives markets.

Along  with  the  implementation  of  EMIR  reporting  requirements,  the  Regulation  on  Wholesale  Energy  Markets 
Integrity and Transparency (“REMIT”) Implementation Acts became effective on January 7, 2015. The REMIT Implementing 
Acts developed by the European Commission define the details of reporting under REMIT, drawing up the list of reportable 
contracts  and  derivatives;  defining  details,  timing  and  form  of  reporting,  and  establishing  harmonized  rules  to  report  that 
information to the Agency for the Cooperation of Energy Regulators (“ACER”). They enable ACER to collect information in 
relation to wholesale energy market transactions and fundamentals through the Agency’s REMIT Information System (ARIS), 
to analyze this data to detect market abuse and to report suspicious events to the National Competent Authorities, which are 
responsible  for  investigating  these  matters  further,  and  if  required,  imposing  sanctions.  Market  participants  and  third  parties 
reporting on their behalf have had to: (i) report transactions executed at organized marketplaces and fundamental data from the 
central  information  transparency  platforms;  and  (ii)  report  transactions  in  the  remaining  wholesale  energy  contracts  (OTC 
standard and non-standard supply contracts, transportation contracts) and additional fundamental data.

To  achieve  a  high  level  of  harmonization  and  convergence  in  regular  supervisory  reporting  requirements,  the 
Committee  of  European  Banking  Supervisors  issued  guidelines  on  prudential  reporting  with  the  aim  of  developing  a 
supervisory reporting framework based on common formats, known as COREP. COREP has become part of European Banking 
Authorities’ implementing technical standards on reporting under Basel III. Basel III (or the Third Basel Accord) is a global 
regulatory standard on bank capital adequacy, stress testing and market liquidity risk introduced by bank regulators in most, if 
not  all,  of  the  world’s  major  economies.  Basel  III  is  designed  to  strengthen  bank  capital  requirements  and  introduces  new 
regulatory requirements on bank liquidity and bank leverage. The ongoing adoption of these rules could restrict the ability of 
our  large  bank  and  broker-dealer  customers  to  operate  proprietary  trading  businesses  and  to  maintain  current  capital  market 
exposures under the present structure of their balance sheets, and will cause these entities to need to raise additional capital in 
order to stay active in our marketplaces. Meanwhile, global “Basel IV” standards are expected be adopted in the years to come.

25

Much of our global derivatives volumes continue to be executed by non-U.S. based clients outside the U.S. and subject 
to local prudential regulations. As such, we will continue to operate a number of European regulated venues in accordance with 
EU  or  U.K.  legislation  and  licensed  by  the  FCA  or  EU-based  national  supervisors.  These  venues  are  also  operated  for  non-
derivative  instruments  for  these  clients.  MiFID  II  was  published  by  the  European  Securities  and  Markets  Authority  in 
September 2015 and implemented in January 2018 and introduced important infrastructural changes.

MiFID  II  requires  a  significant  part  of  the  market  in  these  instruments  to  trade  on  trading  venues  subject  to 
transparency regimes, not only in pre- and post-trade prices, but also in fee structures and access. In addition, it has impacted a 
number  of  key  areas,  including  corporate  governance,  transaction  reporting,  pre-  and  post-trade  transparency,  technology 
synchronization, best execution and investor protection.

MiFID II was intended to help improve the functioning of the EU single market by achieving a greater consistency of 
regulatory standards. By design, therefore, it was intended that EU member states should have very similar regulatory regimes 
in relation to the matters addressed to MiFID. MiFID II has also introduced a new regulated execution venue category called an 
OTF  that  captures  much  of  the  voice-and  hybrid-oriented  trading  in  the  EU.  Much  of  our  existing  EU  derivatives  and  fixed 
income execution business now take place on OTFs. Further to its decision to leave the EU, the U.K. has implemented MIFID 
II’s requirements into its own domestic legislation. Brexit may impact future market structures and MiFID II rulemaking and 
implementation  due  to  potential  changes  in  mutual  passporting  and  equivalence  arrangements  between  the  U.K.  and  EU 
member states. See “— Brexit” below.

Rights in relation to an individual's personal data in the EU and U.K. are governed respectively by the General Data 
Protection Regulation ("GDPR") in the EU and the equivalent Data Protection Act 2018 in the U.K. Since May 25, 2018, when 
these two pieces of legislation came into effect, we have been subject to new compliance obligations in relation to such personal 
data and the possibility of significant financial penalties for non-compliance.

Apart from some minor non-material changes, at this time there has not been any legislation from the EU Commission 
or the U.K. Government that have materially changed how the U.K. and EU approach financial regulation since MiFID II and 
the implementation of Brexit. Although divergence of U.K. regulation from EU regulation may occur, there has been no firm 
legislative change signaled or published by the FCA or the U.K. Government. While we generally believe the net impact of the 
rules and regulations are positive for our business, it is possible that unintended consequences of the rules and regulations may 
materially adversely affect us in ways yet to be determined.

Brexit

On January 1, 2021, the U.K. formally left the EU and U.K.-EU trade became subject to a new agreement that was 
concluded in December of 2020. The exit from the EU is commonly referred to as Brexit. Financial services fall outside of the 
scope  of  this  trade  agreement.  At  the  time  the  relationship  was  expected  to  be  determined  by  a  series  of  “equivalence 
decisions,” each of which would grant mutual market access for a limited subset of financial services where either party finds 
the other party has a regulatory regime that achieves similar outcomes to its own. In March 2021, the U.K. and EU agreed a 
Memorandum of Understanding on Financial Services Regulatory Cooperation which creates a structure for dialogue but does 
not include commitments on equivalence.

In  light  of  ongoing  uncertainties,  market  participants  are  still  adjusting  the  way  in  which  they  conduct  business 
between the U.K. and EU. The impact of Brexit on the U.K.-EU flow of financial services and economies of the U.K. and the 
EU member states continues to evolve.

We  implemented  plans  to  ensure  continuity  of  service  in  Europe  and  continue  to  have  regulated  offices  in  place  in 
many  of  the  major  European  markets.  As  part  of  our  ongoing  Brexit  strategy,  ownership  of  BGC  Madrid,  Copenhagen  and 
Frankfurt  &  GFI  Paris,  Madrid  and  Dublin  branches  was  transferred  to  Aurel  BGC  SAS  (a  French-based  operation  and 
therefore  based  in  the  EU)  in  July  2020.  We  have  been  generally  increasing  our  footprint  in  the  EU  which  includes  the 
establishment  of  a  new  branch  office  of  Aurel  BGC  SAS  in  Milan  and  a  new  office  in  Monaco  under  a  new  local  Monaco 
subsidiary.

Regardless of these and other mitigating measures, our European headquarters and largest operations are in London, 
and  market  access  risks  and  uncertainties  have  had  and  could  continue  to  have  a  material  adverse  effect  on  our  customers, 
counterparties, business, prospects, financial condition and results of operations. Furthermore, in the future the U.K. and EU’s 
regulation may diverge, which could disrupt and increase the costs of our operations, and result in a loss of existing levels of 
cross-border market access. 

26

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(cid:28)(cid:57)(cid:70)(cid:67)(cid:65)(cid:70)(cid:63)(cid:1) (cid:57)(cid:70)(cid:60)(cid:1) (cid:45)(cid:61)(cid:59)(cid:77)(cid:74)(cid:65)(cid:76)(cid:65)(cid:61)(cid:75)(cid:1) (cid:40)(cid:57)(cid:76)(cid:65)(cid:71)(cid:70)(cid:57)(cid:68)(cid:1) (cid:29)(cid:71)(cid:69)(cid:69)(cid:65)(cid:75)(cid:75)(cid:65)(cid:71)(cid:70)(cid:11)(cid:1) (cid:29)(cid:71)(cid:69)(cid:65)(cid:75)(cid:65)(cid:71)(cid:70)(cid:1) (cid:40)(cid:57)(cid:59)(cid:65)(cid:71)(cid:70)(cid:57)(cid:68)(cid:1) (cid:28)(cid:57)(cid:70)(cid:59)(cid:57)(cid:74)(cid:65)(cid:57)(cid:1) (cid:81)(cid:1) (cid:60)(cid:61)(cid:1) (cid:48)(cid:57)(cid:68)(cid:71)(cid:74)(cid:61)(cid:75)(cid:1)
(cid:7)(cid:29)(cid:40)(cid:28)(cid:48)(cid:8)

(cid:29)(cid:71)(cid:69)(cid:69)(cid:65)(cid:75)(cid:75)(cid:65)(cid:71)(cid:70)(cid:1)(cid:62)(cid:71)(cid:74)(cid:1)(cid:76)(cid:64)(cid:61)(cid:1)(cid:29)(cid:71)(cid:70)(cid:76)(cid:74)(cid:71)(cid:68)(cid:1)(cid:71)(cid:62)(cid:1)(cid:32)(cid:65)(cid:70)(cid:57)(cid:70)(cid:59)(cid:65)(cid:57)(cid:68)(cid:1)(cid:27)(cid:62)(cid:62)(cid:57)(cid:65)(cid:74)(cid:75)(cid:1)(cid:7)(cid:29)(cid:29)(cid:27)(cid:32)(cid:8)

(cid:39)(cid:65)(cid:70)(cid:65)(cid:75)(cid:76)(cid:61)(cid:74)(cid:65)(cid:71)(cid:1)(cid:60)(cid:61)(cid:1)(cid:31)(cid:59)(cid:71)(cid:70)(cid:71)(cid:69)(cid:65)(cid:59)(cid:57)(cid:1)(cid:81)(cid:1)(cid:32)(cid:65)(cid:70)(cid:57)(cid:70)(cid:82)(cid:57)(cid:75)

(cid:45)(cid:61)(cid:59)(cid:77)(cid:74)(cid:65)(cid:76)(cid:65)(cid:61)(cid:75)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:31)(cid:80)(cid:59)(cid:64)(cid:57)(cid:70)(cid:63)(cid:61)(cid:1)(cid:29)(cid:71)(cid:69)(cid:69)(cid:65)(cid:75)(cid:75)(cid:65)(cid:71)(cid:70)

(cid:32)(cid:61)(cid:60)(cid:61)(cid:74)(cid:57)(cid:68)(cid:1)(cid:45)(cid:61)(cid:74)(cid:78)(cid:65)(cid:59)(cid:61)(cid:1)(cid:62)(cid:71)(cid:74)(cid:1)(cid:32)(cid:65)(cid:70)(cid:57)(cid:70)(cid:59)(cid:65)(cid:57)(cid:68)(cid:1)(cid:39)(cid:57)(cid:74)(cid:67)(cid:61)(cid:76)(cid:75)

(cid:39)(cid:71)(cid:70)(cid:61)(cid:76)(cid:57)(cid:74)(cid:81)(cid:1)(cid:27)(cid:77)(cid:76)(cid:64)(cid:71)(cid:74)(cid:65)(cid:76)(cid:81)(cid:1)(cid:71)(cid:62)(cid:1)(cid:45)(cid:65)(cid:70)(cid:63)(cid:57)(cid:72)(cid:71)(cid:74)(cid:61)

(cid:45)(cid:71)(cid:77)(cid:76)(cid:64)(cid:1)(cid:27)(cid:62)(cid:74)(cid:65)(cid:59)(cid:57)

(cid:36)(cid:71)(cid:64)(cid:57)(cid:70)(cid:70)(cid:61)(cid:75)(cid:58)(cid:77)(cid:74)(cid:63)(cid:1)(cid:45)(cid:76)(cid:71)(cid:59)(cid:67)(cid:1)(cid:31)(cid:80)(cid:59)(cid:64)(cid:57)(cid:70)(cid:63)(cid:61)

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South Korea

Spain

Switzerland

Ministry of Strategy and Finance, The Bank of Korea, The Financial Services Commission 
and The Financial Supervisory Service

Comision Nacional del Mercado de Valores (CNMV)

Financial Markets Supervisory Authority (FINMA), Swiss Federal Banking Commission

United Kingdom

Financial Conduct Authority

Capital Requirements

U.S.

Every  U.S.-registered  broker-dealer  is  subject  to  the  Uniform  Net  Capital  Requirements.  FCMs,  such  as  our 
subsidiary, Mint Brokers (“Mint”), are also subject to CFTC capital requirements. These requirements are designed to ensure 
financial soundness and liquidity by prohibiting a broker or dealer from engaging in business at a time when it does not satisfy 
minimum net capital requirements.

In  the  United  States,  net  capital  is  essentially  defined  as  net  worth  (assets  minus  liabilities),  plus  qualifying 
subordinated borrowings and less certain mandatory deductions that result from excluding assets that are not readily convertible 
into cash and from conservatively valuing certain other assets, such as a firm’s positions in securities. Among these deductions 
are adjustments, commonly referred to as “haircuts,” to the market value of securities positions to reflect the market risk of such 
positions prior to their liquidation or disposition. The Uniform Net Capital Requirements also impose a minimum ratio of debt 
to equity, which may include qualified subordinated borrowings.

Regulations have been adopted by the SEC that prohibit the withdrawal of equity capital of a broker-dealer, restrict the 
ability  of  a  broker-dealer  to  distribute  or  engage  in  any  transaction  with  a  parent  company  or  an  affiliate  that  results  in  a 
reduction of equity capital or to provide an unsecured loan or advance against equity capital for the direct or indirect benefit of 
certain persons related to the broker-dealer (including partners and affiliates) if the broker-dealer’s net capital is, or would be as 
a  result  of  such  withdrawal,  distribution,  reductions,  loan  or  advance,  below  specified  thresholds  of  excess  net  capital.  In 
addition,  the  SEC’s  regulations  require  certain  notifications  to  be  provided  in  advance  of  such  withdrawals,  distributions, 
reductions, loans and advances that exceed, in the aggregate, 30% of excess net capital within any 30-day period. The SEC has 
the authority to restrict, for up to 20 business days, such withdrawal, distribution or reduction of capital if the SEC concludes 
that it may be detrimental to the financial integrity of the broker-dealer or may expose its customers or creditors to loss. Notice 
is  required  following  any  such  withdrawal,  distribution,  reduction,  loan  or  advance  that  exceeds,  in  the  aggregate,  20%  of 
excess net capital within any 30-day period. The SEC’s regulations limiting withdrawals of excess net capital do not preclude 
the payment to employees of “reasonable compensation.”

Four of our subsidiaries, BGCF, GFI Securities LLC, Fenics Execution, LLC and Mint, are registered with the SEC 
and  are  subject  to  the  Uniform  Net  Capital  Requirements.  As  an  FCM,  Mint  is  also  subject  to  CFTC  minimum  capital 
requirements. BGCF, GFI Securities LLC, Fenics Execution, LLC and Amerex Brokers LLC are registered as an Introducing 
Broker with the NFA. BGCF is also a member of the FICC, which imposes capital requirements on its members. 

In  addition,  our  SEFs,  BGC  Derivative  Markets,  GFI  Swaps  Exchange,  FMX  Futures  Exchange,  and  CX 
Clearinghouse, L.P. are required to maintain financial resources to cover operating costs for at least one year, keeping at least 
enough cash or highly liquid securities to cover six months’ operating costs. The Company also operates a designated contract 
market  (DCM)  and  derivatives  clearing  organization  (DCO)  through  the  Futures  Exchange  Group,  which  are  required  to 
maintain  financial  resources  to  cover  operating  costs  for  at  least  one  year,  keeping  at  least  enough  cash  or  highly  liquid 
securities to cover six months’ operating costs. Compliance with the Uniform Net Capital Requirements may limit the extent 
and  nature  of  our  operations  requiring  the  use  of  our  registered  broker-dealer  subsidiaries’  capital,  and  could  also  restrict  or 
preclude our ability to withdraw capital from our broker-dealer subsidiaries or SEFs. 

Non-U.S.

Our  international  operations  are  also  subject  to  capital  requirements  in  their  local  jurisdictions.  BGC  Brokers  L.P., 
BGC European Holdings, L.P, GFI Brokers Limited, and GFI Securities Limited, which are based in the U.K., are currently 
subject to capital requirements established by the FCA. The capital requirements of our French entities (and their EU branches) 
are predominantly set by ACPR and AMF. U.K. and EU authorities apply stringent provisions with respect to capital applicable 
to the operation of these brokerage firms, which vary depending upon the nature and extent of their activities. EU policymakers 

28

have  introduced  a  new  capital  regime  applicable  to  EU  Investment  Firms  with  a  phased  implementation  beginning  in  June 
2021. The U.K. has introduced a regime that, while applying different rules and methods, is largely similar in its objectives. 
This regime has commenced a phased implementation beginning in January 2022. 

In addition, the majority of our other foreign subsidiaries are subject to similar regulation by the relevant authorities in 
the countries in which they do business. Additionally, certain other of our foreign subsidiaries are required to maintain non-U.S. 
net  capital  requirements.  For  example,  in  Hong  Kong,  BGC  Securities  (Hong  Kong),  LLC,  GFI  (HK)  Securities  LLC  and 
Sunrise Brokers (Hong Kong) Limited are regulated by the Securities and Futures Commission. BGC Capital Markets (Hong 
Kong) Limited and GFI (HK) Brokers Ltd, are regulated by The Hong Kong Monetary Authority. All are subject to Hong Kong 
net  capital  requirements.  In  France,  Aurel  BGC  and  BGC  France  Holdings;  in  Australia,  BGC  Securities  (Australia)  Pty 
Limited, BGC (Securities) Pty Limited and GFI Australia Pty Ltd.; in Japan, BGC Shoken Kaisha Limited’s Tokyo branch and 
BGC Capital Markets Japan LLC’s Tokyo Branch; in Singapore, BGC Partners (Singapore) Limited, GFI Group Pte Ltd and 
Ginga  Global  Market  Pte  Ltd;  in  South  Korea,  BGC  Capital  Markets  &  Foreign  Exchange  Broker  (Korea)  Limited  and  GFI 
Korea  Money  Brokerage  Limited;  and  in  Turkey,  BGC  Partners  Menkul  Degerler  AS,  all  have  net  capital  requirements 
imposed upon them by local regulators. In addition, the LCH (LIFFE/LME) clearing organization, of which BGC Brokers L.P. 
is a member, also imposes minimum capital requirements. In Latin America, BGC Liquidez Distribuidora De Titulos E Valores 
Mobiliarios Ltda. (Brazil) has net capital requirements imposed upon it by local regulators. 

We had net assets in our regulated subsidiaries of $666.0 million and $667.2 million for the years ended December 31, 

2022 and 2021, respectively.

Human Capital Management

Human Capital Resources

BGC is an organization built on strong values, employee engagement and ownership. At our core, we are committed to 
our  employees  by  providing  an  opportunity  to  participate  in  our  success.  We  believe  that  by  cultivating  a  dynamic  mix  of 
people and ideas, we enrich the performance of our business, the experience of our increasingly diverse employee base and the 
dynamism of our communities.

Workforce

As of December 31, 2022, we employed approximately 3,818 employees in 26 countries spread across five continents. 
Within this total, 99% of our employee base was comprised of full-time employees. Brokers, salespeople, managers, technology 
professionals and other front-office personnel across our business comprise approximately 1,985 employees, representing 52% 
of  the  total  workforce.  Approximately  28%  of  our  brokers,  salespeople,  managers,  technology  professionals  and  other  front-
office personnel were based in the Americas, and approximately 50.5% were based in Europe, the Middle East and Africa, with 
the  remaining  approximately  21.5%  based  in  the  Asia-Pacific  region.  On  November  1,  2021,  we  completed  the  Insurance 
Business  Disposition  and  approximately  519  front  and  back-office  employees  in  our  insurance  brokerage  business  were 
transferred  in  connection  with  the  transaction.  Various  of  our  employees  also  work  for  Cantor  and  its  affiliates  and  provide 
services to us pursuant to the Administrative Services Agreement and devote only a portion of their time to our business, and 
therefore  have  not  been  included  in  the  counts  above.  Generally,  our  employees  are  not  subject  to  any  collective  bargaining 
agreements,  except  for  certain  of  our  employees  based  in  our  Latin  American  and  European  offices  that  are  covered  by  the 
national, industry-wide collective bargaining agreements relevant to the countries in which they work.

We  have  invested  significantly  in  our  human  capital  resources  through  acquisitions,  and  the  hiring  of  new  brokers, 
salespeople, managers,  technology  professionals and other  front-office personnel. The business climate for these acquisitions 
and recruitment has been competitive, and it is expected that these conditions will persist for the foreseeable future. We have 
been able to attract businesses and brokers, salespeople, managers, technology professionals and other front-office personnel to 
our platform as we believe they recognize that we have the scale, technology, experience and expertise to succeed.

BGC is an organization built on strong values, employee engagement and ownership. At our core, we are committed to 
our  employees  by  providing  an  opportunity  to  participate  in  our  success.  We  believe  that  by  cultivating  a  dynamic  mix  of 
people and ideas, we enrich the performance of our business, the experience of our increasingly diverse employee base and the 
dynamism of our communities.

Human Capital Measures and Objectives

In  operating  our  business,  we  focus  on  certain  human  capital  measures  and  objectives  that  are  key  drivers  of  our 
revenues and margins. We continually work to expand our trading across more asset classes and geographical regions and to 
grow our Fully Electronic business while seeking to manage our human capital resources to maximize our profitability in the 
face of shifting demands and conditions. 

29

Our  key  human  capital  measures  and  objectives  include  front-office  employee  headcount  (described  above)  and 
average revenue per front-office employee. As we continue to deepen the integration of Fenics technology solutions into our 
workflows, and convert more of our Voice and Hybrid businesses to our Fenics businesses, we expect our average revenue per 
front-office  employee  to  continue  to  improve.  As  of  December  31,  2022,  our  front-office  revenue-generating  headcount  was 
approximately 1,985 brokers and salespeople, managers and technology professionals, down 6.0% from 2,111 a year ago as we 
selectively reduced less productive front office headcount. These reductions were made alongside increased migration toward 
Fenics  technology  solutions,  which  helped  drive  increased  average  productivity.  Compared  to  the  prior  year  period,  average 
revenue per front-office employee for the year ended December 31, 2022, increased by 6.1% to approximately $861,000, an all-
time record.

We invest heavily in developing our technology and new products and services in order to drive increased front-office 
productivity  and  generate  higher  margins,  in  particular  with  respect  to  our  Fenics  brokerage  and  other  higher-margin 
businesses.  For  example,  in  our  Fenics  business,  we  aim  to  convert  Voice  and  Hybrid  trading  to  Fully  Electronic  trading  in 
order to improve our margins. This is largely because automated and electronic trading efficiency allows the same number of 
employees to manage a greater volume of trades resulting in a decrease in the marginal cost of trading. Our Fully Electronic 
business has generally grown faster than our overall business, including during the COVID-19 pandemic and the adoption of 
hybrid  and  remote  working  environments,  with  average  front  office  productivity  increasing  by  6.1%  for  the  year  ended 
December 31, 2022 compared to the prior year. From time to time, we also engage in cost-savings initiatives and restructurings 
in order to improve our margins.

Retention Measures 

To facilitate the retention of our employees, we have increased our flexible work arrangements, where appropriate, and 
made  compensation  adjustments,  and  provided  additional  benefits,  including  a  401(k)  match  for  many  of  our  U.S.  support 
employees. 

We have taken significant measures to develop a safe work environment for all employees, which is conducive to work 
in our office locations, particularly for front-office brokers and revenue generating employees, subject to applicable state and 
local  regulatory  requirements.  We  have  established  a  more  flexible  hybrid  approach  in  many  instances  for  non-revenue 
generating roles or for roles which are not office dependent, where appropriate. We have established vaccination requirements 
in accordance with applicable laws, including time-off for vaccines, coverage for COVID-19 testing and enhanced sick leave. 
We  continue  to  offer  employee  assistance  programs  and  additional  avenues  for  mental  health  consultation  and  wellness.  We 
continue to take significant steps to protect our employees and encourage them all to get vaccinated. 

Performance-Based and Highly Retentive Compensation Structure

Virtually  all  of  our  executives  and  front-office  employees  have  equity  or  partnership  stakes  in  the  Company  and  its 
subsidiaries and generally receive grants of deferred equity or LPUs as part of their compensation. As of December 31, 2022, 
our employees, partners, executive officers and directors owned approximately 17% of our equity, on a fully diluted basis. 

We issue LPUs as well as other forms of equity-based compensation, including grants of exchangeability into shares of 
Class A common stock and grants of shares of restricted stock, to provide liquidity to our employees, to align the interests of 
our  employees  and  management  with  those  of  common  stockholders,  to  help  motivate  and  retain  key  employees,  and  to 
encourage  a  collaborative  culture  that  drives  cross-selling  and  revenue  growth.  These  LPUs,  which  may  be  redeemed  at  any 
time for zero, and shares of restricted stock, which are subject to forfeiture if the non-compete, confidentiality or non-solicit 
provisions of the BGC Holdings limited partnership agreement are violated, are also extremely retentive. In addition, we pay 
amounts  due  to  a  partner  upon  termination  of  service  over  a  number  of  years  in  order  to  ensure  compliance  with  partner 
obligations.

We also enter into various agreements with certain of our employees and partners whereby these individuals receive 
loans which may be either wholly or in part repaid from the distributions that these individuals receive on some or all of their 
LPUs and from proceeds of the sale of the employees' shares of BGC Class A common stock, or may be forgiven over a period 
of time. From time to time, the Company may also enter into agreements with employees and partners to grant bonus and salary 
advances  or  other  types  of  loans.  These  advances  and  loans  are  repayable  in  the  timeframes  outlined  in  the  underlying 
agreements.

Impact of Corporate Conversion 

See “—Our History—Corporate Conversion.”

30

Human Capital and Social Policies and Practices

We are committed to our people, our stockholders and the community as a whole. We have a variety of programs to 
incentivize  and  support  our  employees,  from  employee  ownership  to  comprehensive  benefits  and  training.  We  are  also 
committed  to  equal  opportunity,  diversity  and  other  policies  and  practices  designed  to  fulfill  our  commitment  to  social  and 
human capital development. 

Employee Diversity, Inclusion and Equal Opportunity

We believe that by cultivating a dynamic mix of people and ideas, we improve the performance of our business and 
enrich the experience of our employees. We are committed to equal opportunity, diversity and other policies and practices that 
seek to further our development of a diverse and inclusive workplace. We consider all qualified applicants for job openings and 
promotions  without  regard  to  race,  color,  religion  or  belief,  sex,  sexual  orientation,  gender  identity  or  reassignment,  national 
origin  or  ancestry,  age,  disability,  service  in  the  armed  forces,  pregnancy  or  maternity,  familial  status,  marriage  and  civil 
partnership, genetic information or any other characteristic that has no bearing on the ability of employees to do their jobs well. 
We continue to develop initiatives to support these values.

Our recruitment, promotion and compensation processes are designed to enable us to treat employees fairly, and our 

compensation decisions are differentiated based on performance.

Talent remains at the core of who we are as a company, and we remain committed to having a culture built around 
inclusion  and  developing  a  diverse  workforce.  We  continue  to  work  to  enhance  our  ability  to  attract,  develop  and  retain  top 
talent with an emphasis on increasing representation of traditionally underrepresented groups at all levels of the organization, 
encompassing early careers to experienced hiring, retention and development initiatives with a focus on diversity and inclusion. 
Our  goal  is  to  build  an  even  more  successful  organization  that  more  closely  reflects  our  clients  bases  and  the  population  at 
large.

Our Network of Women (“NOW”) program supports the recruitment, development and retention of women across our 
organization  to  advance  our  business  and  reputation.  NOW  offers  a  variety  of  opportunities,  tools,  events  and  workshops  to 
help our employees make new professional contacts, find mentors, gain knowledge and develop their careers. These events and 
activities  also  allow  our  employees  to  support  one  another  through  a  valuable  exchange  of  experiences,  advice  and  best 
practices for career success.

A number of initiatives across our geographic regions are in place to promote our corporate values and foster greater 
diversity and inclusion. Such examples include a range of early career work experiences and internship programs focusing on 
diverse  talent,  mentorship  programs,  and  initiatives  to  foster  women’s  leadership.  In  the  U.K.,  we  have  signed  up  to  HM 
Treasury’s Women in Finance Charter, which commits signatory firms to set percentage targets to increase the proportion of 
women  in  senior  roles  and  publicly  report  on  their  progress  in  seeking  to  meet  these  targets.  We  have  also  rolled  out 
organizational Core Values (Integrity, Commitment and Opportunity) and appointed Culture Champions in the U.K., as well as 
further initiatives which seek to embed these values and drive an enhanced culture across our workforce. 

Employee Engagement, Communication, Management and Leadership Training and Development 

We are investing in our employees’ long-term development and engagement by delivering training and development 
programs and a culture where our people can thrive and maximize their potential. We require annual regulatory and mandatory 
training  in  anti-money  laundering  and  anti-crime,  global  sanctions,  ethics,  cyber-security  and  harassment  prevention,  among 
other topics. We also provide or support periodic job-specific and other developmental training and support for our employees 
so they can maximize their potential, as well as a tuition reimbursement program to eligible employees.

We  provide  virtual  and  in-person  leadership  training  to  managers  on  topics  including  management  effectiveness, 
communication  skills,  interview  skills  and  delivering  effective  performance  evaluations,  managing  diverse  teams  and  other 
topics. This training is supplemented by a library of online training courses that managers and employees may access. Finally, 
our individual business lines offer ongoing learning and development opportunities tied to deepening the understanding of the 
subject matter expertise of their professionals. We also have intern and early career programs throughout the year in various 
parts of our business. 

Our success depends on employees' understanding how their work and engagement contribute to our strategy, culture, 
values, and regulatory environment. We use various channels to facilitate open and direct communication, including internal 
calls  and  meetings  with  employees,  training  and  policy  updates,  employee  resource  groups,  such  as  NOW,  and  social  and 
family outings and events.

31

Succession 

From  time  to  time,  the  Board  discusses  succession  planning,  including  our  consideration  of  succession  strategy,  the 
impact  of  any  potential  absence  due  to  illness  or  leave  of  certain  key  executive  officers  or  employees,  as  well  as  competing 
demands  on  the  time  of  certain  of  our  executive  officers  who  also  provide  services  to  Cantor,  Newmark,  and  various  other 
ventures and investments sponsored by Cantor. Our Board also discusses from time to time, as part of its succession planning, 
engagement and encouragement of future business leaders and the process of introducing directors to leaders in our business 
lines. The Board also considers hiring and retention of leaders required for the changing business landscape and to lead future 
business  lines.  At  the  business  and  departmental  levels,  managers  discuss  and  identify  potential  talent,  opportunities  for 
employee  growth,  successors  and  future  leaders.  These  future  leaders  are  offered  management  training  opportunities  as 
referenced above and the privilege of participating in our mentoring program, including through NOW.

Environmental, Social and Governance (ESG) / Sustainability Information

We believe that our environmental, social and governance (“ESG”) policies and practices will create sustainable long-
term  value  for  BGC,  our  stockholders  and  other  stakeholders,  our  clients  and  our  employees  while  also  helping  us  mitigate 
risks, reduce costs, protect brand value, and identify market opportunities. 

In April 2021, we established a Board-level ESG Committee to provide oversight with respect to our ESG policies and 
practices. The ESG Committee charter may be found on our website at https://www.bgcpartners.com/esg/governance under the 
heading  "Independent  Environmental,  Social  and  Governance  Committee."  With  the  Board's  and  the  ESG  Committee's 
oversight,  we  are  embedding  social  and  human  capital,  employment,  environmental,  sustainability,  charitable  and  corporate 
governance  policies  and  practices  into  our  corporate  strategy,  compensation,  disclosure,  and  goals  to  maintain  and  advance 
long-term stockholder value. 

For more information about these topics, new and evolving initiatives and specific examples of policies and practices, 

see our website at https://www.bgcpartners.com/esg.

Our Environmental Focus, Environmental Markets and Sustainable Business Practices 

We are focused on the environment and recognize the importance of treating our natural resources with the greatest 
respect, so that they are available to future generations. As a responsible business operating within financial services, we are 
actively aware of climate change and other major issues affecting the environment. We believe BGC Environmental Brokerage 
Services is a leader in the world’s environmental and green energy markets. Our Environmental Brokerage Services business 
provides  expert  innovative  carbon  offset  solutions  and  advice  to  the  world’s  green  energy  markets,  from  transactions  and 
financing  to  technology  and  consulting.  For  decades,  we  have  helped  clients  worldwide  navigate  the  complex  financial 
requirements in order to achieve their environmental initiatives, thereby supporting our clients' efforts to meet their emission 
reduction goals through the provision of brokerage services. For more information on BGC Environmental Brokerage Services, 
please visit https://www.bgcebs.com. 

In  our  workplaces,  we  are  studying  how  to  make  our  own  contribution  to  state,  national  and  global  environmental 
initiatives and require the same of our vendors and suppliers when doing business with us. As part of this, we are considering 
how to minimize our future carbon footprint when planning office renovations and will continue to focus our attention in the 
near  term  on  methods  of  reducing  our  greenhouse  gas  emissions,  increasing  use  of  renewable  energy,  conserving  water,  and 
reducing waste generation. 

BGC supports sustainable business practices and is focused on the steps necessary to establish a sustainability program 
internally as we focus on our own energy usage. We believe it is our responsibility to improve energy efficiency and reduce 
energy  consumption  to  protect  the  environment  through  continuous  improvement  of  our  energy  use  practices  and  increased 
scrutiny on the energy efficiency of the buildings we utilize for our space. We intend to continue to work on these initiatives. 

To learn more about policies and practices and our continuing efforts related to Human Capital Management, as well 
as ESG matters, please refer to the ESG sustainability section of our website at https://www.bgcpartners.com/esg. You will also 
find  our  Corporate  Governance  Guidelines,  our  Code  of  Business  Conduct  and  Ethics,  the  charters  of  the  committees  of  our 
Board of Directors, our Hedging Policy, information about our charitable initiatives and other sustainability and ESG policies 
and practices on our website and in our proxy statement for our annual meeting of stockholders. 

For  more  information  about  these  initiatives  as  they  evolve,  visit  our  website  at  https://www.bgcpartners.com/esg/

environmental. 

32

Legal Proceedings

See  Note  19—“Commitments,  Contingencies  and  Guarantees”  to  our  consolidated  financial  statements  in  Part  II, 
Item 8 of this Annual Report on Form 10-K and the section under the heading “Derivative Suit” included in Part I, Item 7 of 
this Annual Report on Form 10-K, Management’s Discussion and Analysis of Financial Condition and Results of Operations 
for a description of our legal proceedings.

OUR ORGANIZATIONAL STRUCTURE

Dual Class Equity Structure of BGC Partners, Inc. We have a dual class equity structure, consisting of shares of 

BGC Class A common stock and BGC Class B common stock. 

BGC Class A common stock. Each share of BGC Class A common stock is generally entitled to one vote on matters 
submitted to a vote of our stockholders. As of December 31, 2022, there were 471.9 million shares of BGC Class A common 
stock  issued  and  325.9  million  shares  outstanding.  On  June  21,  2017,  Cantor  pledged  10.0  million  shares  of  BGC  Class  A 
common stock in connection with a partner loan program. On November 23, 2018, those shares of BGC Class A common stock 
were converted into 10.0 million shares of BGC Class B common stock and remain pledged in connection with the partner loan 
program.

Through  December  31,  2022,  Cantor  has  distributed  to  its  current  and  former  partners  an  aggregate  of  20.9  million 
shares of BGC Class A common stock, consisting of (i) 19.4 million April 2008 distribution rights shares, and (ii) 1.5 million 
February  2012  distribution  rights  shares.  As  of  December  31,  2022,  Cantor  is  still  obligated  to  distribute  to  its  current  and 
former  partners  an  aggregate  of  15.8  million  shares  of  BGC  Class  A  common  stock,  consisting  of  14.0  million  April  2008 
distribution rights shares and 1.8 million February 2012 distribution rights shares. As of December 31, 2022, Cantor and CFGM 
held no shares of BGC Class A common stock. 

From  time  to  time,  we  may  actively  continue  to  repurchase  shares  of  our  Class  A  common  stock  including  from 

Cantor, Newmark, our executive officers, other employees, partners and others.

BGC Class B common stock. Each share of BGC Class B common stock is generally entitled to the same rights as a 
share of BGC Class A common stock, except that, on matters submitted to a vote of our stockholders, each share of BGC Class 
B  common  stock  is  entitled  to  10  votes.  The  BGC  Class  B  common  stock  generally  votes  together  with  the  BGC  Class  A 
common stock on all matters submitted to a vote of our stockholders. We expect to retain and have no plans to change our dual 
class structure. On November 23, 2018, BGC Partners issued 10.3 million shares of BGC Class B common stock to Cantor and 
0.7 million shares of BGC Class B common stock to CFGM, an affiliate of Cantor, in each case in exchange for shares of BGC 
Class A common stock from Cantor and CFGM, respectively, on a one-to-one basis pursuant to Cantor’s and CFGM’s right to 
exchange such shares under the Exchange Agreement. Pursuant to the Exchange Agreement, no additional consideration was 
paid  to  BGC  Partners  by  Cantor  or  CFGM  for  the  Class  B  Issuance.  The  Class  B  Issuance  was  exempt  from  registration 
pursuant  to  Section  3(a)(9)  of  the  Securities  Act.  As  of  December  31,  2022,  Cantor  and  CFGM  held  an  aggregate  of  45.9 
million shares of BGC Class B common stock, representing all of the outstanding shares of BGC Class B common stock and 
approximately 58.5% of our total voting power. 

Shares of BGC Class B common stock are convertible into shares of BGC Class A common stock at any time in the 
discretion of the holder on a one-for-one basis. Accordingly, if Cantor and CFGM converted all of their BGC Class B common 
stock into BGC Class A common stock, Cantor would hold 12.1% of the voting power of our outstanding capital stock, CFGM 
would hold 0.2% of the voting power, and the public stockholders would hold 87.7% of the voting power of our outstanding 
capital stock (and Cantor and CFGM’s indirect economic interests in BGC U.S. and BGC Global would remain unchanged). 
The  diagram  does  not  reflect  certain  BGC  Holdings  partnership  units  as  follows:  (a)  43.9  million  Preferred  Units,  including 
Preferred N Units, granted and outstanding to BGC Holdings partners (see “BGC Partners, Inc. Partnership Structure” herein); 
and (b) 50.1 million N Units, excluding Preferred N Units, granted and outstanding to BGC Holdings partners.

BGC Partners, Inc. Partnership Structure

We are a holding company with no direct operations, and our business is operated through two operating partnerships, 
BGC U.S. OpCo, which holds our U.S. businesses, and BGC Global OpCo, which holds our non-U.S. businesses. The limited 
partnership interests of the two operating partnerships are held by us and BGC Holdings, and the limited partnership interests of 
BGC  Holdings  are  currently  held  by  LPU  holders,  Founding  Partners,  and  Cantor.  We  hold  the  BGC  Holdings  general 
partnership interest and the BGC Holdings special voting limited partnership interest, which entitle us to remove and appoint 
the  general  partner  of  BGC  Holdings,  and  serve  as  the  general  partner  of  BGC  Holdings,  which  entitles  us  to  control  BGC 
Holdings.  BGC  Holdings,  in  turn,  holds  the  BGC  U.S.  OpCo  general  partnership  interest  and  the  BGC  U.S.  OpCo  special 
voting  limited  partnership  interest,  which  entitle  the  holder  thereof  to  remove  and  appoint  the  general  partner  of  BGC  U.S. 
OpCo,  and  the  BGC  Global  OpCo  general  partnership  interest  and  the  BGC  Global  OpCo  special  voting  limited  partnership 

33

interest,  which  entitle  the  holder  thereof  to  remove  and  appoint  the  general  partner  of  BGC  Global  OpCo,  and  serves  as  the 
general partner of BGC U.S. OpCo and BGC Global OpCo, all of which entitle BGC Holdings (and thereby us) to control each 
of BGC U.S. OpCo and BGC Global OpCo. BGC Holdings holds its BGC Global OpCo general partnership interest through a 
company incorporated in the Cayman Islands, BGC Global Holdings GP Limited.

As  of  December  31,  2022,  we  held  directly  and  indirectly,  through  wholly-owned  subsidiaries,  371.7  million  BGC 
U.S. OpCo limited partnership units and 371.7 million BGC Global OpCo limited partnership units, representing approximately 
76.9%  of  the  outstanding  limited  partnership  units  in  both  BGC  U.S.  OpCo  and  BGC  Global  OpCo.  As  of  that  date,  BGC 
Holdings  held  111.4  million  BGC  U.S.  OpCo  limited  partnership  units  and  111.4  million  BGC  Global  OpCo  limited 
partnership units, representing approximately 23.1% of the outstanding limited partnership units in both BGC U.S. OpCo and 
BGC Global OpCo. 

LPU  holders,  Founding  Partners,  and  Cantor  directly  hold  BGC  Holdings  limited  partnership  interests.  Since  BGC 
Holdings in turn holds BGC U.S. OpCo limited partnership interests and BGC Global OpCo limited partnership interests, LPU 
holders,  Founding  Partners,  and  Cantor  indirectly  have  interests  in  BGC  U.S.  OpCo  limited  partnership  interests  and  BGC 
Global  OpCo  limited  partnership  interests.  Further,  in  connection  with  the  Separation  and  Distribution  Agreement,  limited 
partnership  interests  in  Newmark  Holdings  were  distributed  to  the  holders  of  limited  partnership  interests  in  BGC  Holdings, 
whereby each holder of BGC Holdings limited partnership interests who at that time held a BGC Holdings limited partnership 
interest received a corresponding Newmark Holdings limited partnership interest, equal in number to a BGC Holdings limited 
partnership interest divided by 2.2 (i.e., 0.4545 of a unit in Newmark Holdings). Accordingly, existing partners at the time of 
the Separation in BGC Holdings are also partners in Newmark Holdings and hold corresponding units issued at the applicable 
ratio. Thus, such partners also have an indirect interest in Newmark OpCo.

As  of  December  31,  2022,  excluding  Preferred  Units  and  NPSUs  described  above,  outstanding  BGC  Holdings 

partnership interests included 51.9 million LPUs, 7.2 million FPUs and 57.6 million Cantor units.

We may in the future effect additional redemptions of BGC Holdings LPUs and FPUs, and concurrently grant shares 
of BGC Class A common stock. We may also continue our earlier partnership restructuring programs, whereby we redeemed or 
repurchased certain LPUs and FPUs in exchange for new units, grants of exchangeability for BGC Class A common stock or 
cash and, in many cases, obtained modifications or extensions of partners’ employment arrangements. We also generally expect 
to  continue  to  grant  exchange  rights  with  respect  to  outstanding  non-exchangeable  LPUs  and  FPUs,  and  to  repurchase  BGC 
Holdings  partnership  interests  from  time  to  time,  including  from  Cantor,  our  executive  officers,  and  other  employees  and 
partners, unrelated to our partnership restructuring programs.

Cantor  units  in  BGC  Holdings  are  generally  exchangeable  under  the  Exchange  Agreement  for  up  to  23.6  million 
shares of BGC Class B common stock (or, at Cantor’s option or if there are no such additional authorized but unissued shares of 
our  Class  B  common  stock,  BGC  Class  A  common  stock)  on  a  one-for-one  basis  (subject  to  adjustments).  Upon  certain 
circumstances, Cantor may have the right to acquire additional Cantor units in connection with the redemption of or grant of 
exchangeability to certain non-exchangeable BGC Holdings FPUs owned by persons who were previously Cantor partners prior 
to our 2008 acquisition of the BGC business from Cantor. Cantor has exercised this right from time to time.

On  May  17,  2022,  Cantor  purchased  from  BGC  Holdings  an  aggregate  of  427,494  Cantor  units  for  aggregate 
consideration of $841,010 as a result of the redemption of 427,494 FPUs, and 52,681 Cantor units for aggregate consideration 
of  $105,867  as  a  result  of  the  exchange  of  52,681  FPUs.  On  October  25,  2022,  Cantor  purchased  from  BGC  Holdings  an 
aggregate of 275,833 Cantor units for an aggregate consideration of $397,196 as a result of the redemption of 275,833 FPUs, 
and 77,507 Cantor units for aggregate consideration of $142,613 as a result of the exchange of 77,507 FPUs. Following such 
purchases, as of December 31, 2022, there were 0.3 million FPUs in BGC Holdings remaining which BGC Holdings had the 
right to redeem or exchange and with respect to which Cantor will have the right to purchase an equivalent number of Cantor 
units following such redemption or exchange.

In  order  to  facilitate  partner  compensation  and  for  other  corporate  purposes,  the  BGC  Holdings  limited  partnership 
agreement  provides  for  Preferred  Units,  which  are  Working  Partner  units  that  may  be  awarded  to  holders  of,  or 
contemporaneous  with  the  grant  of,  PSUs,  PSIs,  PSEs,  LPUs,  APSUs,  APSIs,  APSEs,  REUs,  RPUs,  AREUs,  and  ARPUs. 
These Preferred Units carry the same name as the underlying unit, with the insertion of an additional “P” to designate them as 
Preferred Units.

Such Preferred Units may not be made exchangeable into BGC Class A common stock and accordingly will not be 
included in the fully diluted share count. Each quarter, the net profits of BGC Holdings are allocated to such Units at a rate of 
either 0.6875% (which is 2.75% per calendar year) of the allocation amount assigned to them based on their award price, or 
such other amount as set forth in the award documentation, before calculation and distribution of the quarterly BGC Holdings 
distribution  for  the  remaining  BGC  Holdings  units.  The  Preferred  Units  will  not  be  entitled  to  participate  in  BGC  Holdings 
distributions other than with respect to the Preferred Distribution. As of December 31, 2022, there were 43.9 million such units, 
including Preferred N Units, granted and outstanding.

34

On  June  5,  2015,  we  entered  into  an  agreement  with  Cantor  providing  Cantor,  CFGM  and  other  Cantor  affiliates 
entitled  to  hold  BGC  Class  B  common  stock  the  right  to  exchange  from  time  to  time,  on  a  one-to-one  basis,  subject  to 
adjustment, up to an aggregate of 34.6 million shares of BGC Class A common stock then owned or subsequently acquired by 
such Cantor entities for up to an aggregate of 34.6 million shares of BGC Class B common stock. Such shares of BGC Class B 
common stock, which currently can be acquired upon the exchange of exchangeable LPUs owned in BGC Holdings, are already 
included in the Company’s fully diluted share count and will not increase Cantor’s current maximum potential voting power in 
the common equity. The Exchange Agreement enables the Cantor entities to acquire the same number of shares of BGC Class B 
common stock that they were already entitled to acquire without having to exchange their exchangeable LPUs in our Holdings.

Under the Exchange Agreement, Cantor and CFGM have the right to exchange shares of BGC Class A common stock 
owned by them for the same number of shares of BGC Class B common stock. As of December 31, 2022, Cantor and CFGM 
do not own any shares of BGC Class A common stock. Cantor and CFGM would also have the right to exchange any shares of 
BGC Class A common stock subsequently acquired by either of them for shares of BGC Class B common stock, up to 23.6 
million shares of BGC Class B common stock.

We and Cantor have agreed that any shares of BGC Class B common stock issued in connection with the Exchange 
Agreement would be deducted from the aggregate number of shares of BGC Class B common stock that may be issued to the 
Cantor entities upon exchange of exchangeable LPUs in BGC Holdings. Accordingly, the Cantor entities will not be entitled to 
receive  any  more  shares  of  BGC  Class  B  common  stock  under  this  agreement  than  they  were  previously  eligible  to  receive 
upon exchange of exchangeable LPUs.

Non-distributing  partnership  units,  or  N  Units,  carry  the  same  name  as  the  underlying  unit  with  the  insertion  of  an 
additional “N” to designate them as the N Unit type and are designated as NREUs, NPREUs, NLPUs, NPLPUs and NPPSUs. 
The N Units are not entitled to participate in BGC Holdings distributions, will not be allocated any items of profit or loss and 
may  not  be  made  exchangeable  into  shares  of  BGC  Class  A  common  stock.  Subject  to  the  approval  of  the  Compensation 
Committee or its designee, certain N Units may be converted into the underlying unit type (i.e., an NREU may be converted 
into an REU) and will then participate in BGC Holdings distributions, subject to terms and conditions determined by us as the 
general partner of BGC Holdings, in our sole discretion, including that the recipient continue to provide substantial services to 
us and comply with his or her partnership obligations.

On December 13, 2017, the Amended and Restated BGC Holdings Partnership Agreement was amended and restated a 
second time to include prior standalone amendments and to make certain other changes related to the Separation. The Second 
Amended and Restated BGC Holdings Partnership Agreement, among other things, reflects changes resulting from the division 
in the Separation of BGC Holdings into BGC Holdings and Newmark Holdings, including:

•

•

an  apportionment  of  the  existing  economic  attributes  (including,  among  others,  capital  accounts  and  post-
termination payments) of each BGC Holdings LPU outstanding immediately prior to the Separation between
such  Legacy  BGC  Holdings  Unit  and  the  0.4545  of  a  Newmark  Holdings  LPU  issued  in  the  Separation  in
respect  of  each  such  Legacy  BGC  Holdings  Unit,  based  on  the  relative  value  of  BGC  and  Newmark  as  of
after the Newmark IPO; and

a  right  of  the  employer  of  a  partner  to  determine  whether  to  grant  exchangeability  with  respect  to  Legacy
BGC Holdings Units held by such partner.

The  Second  Amended  and  Restated  BGC  Holdings  Partnership  Agreement  also  removes  certain  classes  of  BGC 
Holdings units that are no longer outstanding and permits the general partner of BGC Holdings to determine the total number of 
authorized  BGC  Holdings  units.  The  Second  Amended  and  Restated  BGC  Holdings  Limited  Partnership  Agreement  was 
approved by the Audit Committee of the Board of Directors of the Company.

The following diagram illustrates our organizational structure as of December 31, 2022. The diagram does not reflect 
the  various  subsidiaries  of  BGC,  BGC  U.S.  OpCo,  BGC  Global  OpCo,  or  Cantor,  or  the  noncontrolling  interests  in  our 
consolidated subsidiaries other than Cantor’s units in BGC Holdings. The diagram does not take into account the effects of the 
Corporate Conversion.

35

STRUCTURE OF BGC PARTNERS, INC. AS OF DECEMBER 31, 2022

The diagram reflects the following activity of BGC Class A common stock and BGC Holdings partnership unit activity 
from  January  1,  2022  through  December  31,  2022  as  follows:  (a)  27.1  million  shares  of  BGC  Class  A  common  stock 
repurchased by us; (b) 12.8 million shares of BGC Class A common stock issued for vested N Units; (c) 9.7 million LPUs for 

36

vested  N  Units;  (d)  3.6  million  LPUs  forfeited;  (e)  3.3  million  shares  of  BGC  Class  A  common  stock  issued  for  vested 
restricted stock units; (f) an aggregate of 3.1 million LPUs granted by BGC Holdings; (g) 1.4 million LPUs and FPUs redeemed 
or  repurchased  by  us  for  cash;  (h)  1.2  million  shares  of  Class  A  common  stock  issued  by  us  under  our  acquisition  shelf 
Registration Statement on Form S-4 (Registration No. 333-169232), but not the 2.8 million of such shares remaining available 
for issuance by us under such Registration Statement or the 20.0 million shares of BGC Class A common stock available for 
issuance under our 2019 Form S-4 Registration Statement (Registration No. 333-233761); (i) 0.4 million FPUs related to prior 
period adjustments; (j) 0.1 million LPUs related to prior period adjustments; and (k) 26 thousand shares issued by us under our 
Dividend Reinvestment and Stock Purchase Plan shelf Registration Statement on Form S-3 (Registration No. 333-173109), but 
not the 9.2 million of such shares remaining available for issuance by us under our Dividend Reinvestment and Stock Purchase 
Plan. On March 8, 2021, we filed a new CEO Program shelf registration statement on Form S-3 with respect to the issuance and 
sale  of  up  to  an  aggregate  of  $300.0  million  of  shares  of  BGC  Class  A  common  stock  from  time  to  time  on  a  delayed  or 
continuous  basis  (the  "March  2021  Form  S-3").  On  July  8,  2022,  we  filed  an  amendment  to  the  March  2021  Form  S-3.  On 
August  3,  2022,  the  March  2021  Form  S-3  was  declared  effective  by  the  SEC.  On  August  12,  2022,  we  entered  into  a 
Controlled Equity OfferingSM sales agreement with CF&Co (the “August 2022 Sales Agreement”), pursuant to which we could 
offer and sell up to an aggregate of $300.0 million of shares of BGC Class A common stock under the March 2021 Form S-3. 
Under the August 2022 Sales Agreement, we agreed to pay to CF&Co a commission of 2% of the gross proceeds from the sale 
of shares. As of December 31, 2022, we had not sold any shares of BGC Class A common stock or paid any commission to 
CF&Co under the August 2022 Sales Agreement. 

Impact of Corporate Conversion

See "—Our History—Corporate Conversion".

WHERE YOU CAN FIND MORE INFORMATION

We file annual, quarterly and current reports, proxy statements and other information with the SEC. These filings are 

available to the public from the SEC’s website at www.sec.gov.

Our website address is www.bgcpartners.com. Through our website, we make available, free of charge, the following 
documents  as  soon  as  reasonably  practicable  after  they  are  electronically  filed  with,  or  furnished  to,  the  SEC:  our  Annual 
Reports on Form 10-K; our proxy statements for our annual and special stockholder meetings; our Quarterly Reports on Form 
10-Q; our Current Reports on Form 8-K; Forms 3, 4 and 5 and Schedules 13D with respect to our securities filed on behalf of
Cantor,  CFGM,  our  directors  and  our  executive  officers;  and  amendments  to  those  documents.  Our  website  also  contains
additional  information  with  respect  to  our  industry  and  business.  The  information  contained  on,  or  that  may  be  accessed
through, our website is not part of, and is not incorporated into, this Annual Report on Form 10-K.

ITEM 1A. 

RISK FACTORS

Any  investment  in  shares  of  our  Class  A  common  stock,  our  5.375%  Senior  Notes,  our  3.750%  Senior  Notes,  our 
4.375% Senior Notes or our or those of BGC Group, Inc. other securities involves risks and uncertainties. The following are 
important risks and uncertainties that could affect our business, but we do not ascribe any particular likelihood or probability 
to them unless specifically indicated. Any of the risks and uncertainties set forth below, should they occur, could significantly 
and  negatively  affect  our  business,  financial  condition,  results  of  operations,  and  prospects  and/or  the  trading  price  of  our 
Class A common stock, our 5.375% Senior Notes, our 3.750% Senior Notes, our 4.375% Senior Notes or our other securities or 
those of BGC Group, Inc.

RISKS RELATED TO OUR BUSINESS GENERALLY

Risks Related to Global Economic and Market Conditions

Our business, financial condition, results of operations and prospects have been and may continue to be affected 

both positively and negatively by conditions in the global economy and financial markets generally.

Our business and results of operations have been and may continue to be affected both positively and negatively by 
conditions in the global economy and financial markets generally. Difficult market and economic conditions and geopolitical 
uncertainties  have  in  the  past  adversely  affected  and  may  in  the  future  adversely  affect  our  business.  Such  conditions  and 
uncertainties include financial pressures exacerbated by the COVID-19 pandemic, fluctuating levels of economic output, zero to 
near-zero  interest  rates  and  the  impact  on  trading  volumes,  recently  rising  interest  and  inflation  rates,  employment  levels, 
consumer confidence levels, and fiscal and monetary policy. The economic policies of the current administration and Congress, 
potential  further  increases  in  interest  rates  and  potential  changes  to  existing  tax  rates  and  infrastructure  spending  plans  may 

37

further change the regulatory and economic landscape. These conditions may directly and indirectly impact a number of factors 
in  the  global  markets  that  may  have  a  positive  or  negative  effect  on  our  operating  results,  including  the  levels  of  trading, 
investing,  and  origination  activity  in  the  financial  markets,  the  valuations  of  financial  instruments,  changes  in  interest  rates, 
changes  in  benchmarks,  changes  in  and  uncertainty  regarding  laws  and  regulations,  substantial  fluctuations  in  volume  and 
commissions on securities and derivatives transactions, the absolute and relative level of currency rates and the actual and the 
perceived quality of issuers, borrowers and investors. For example, the actions of the U.S. Federal Reserve and international 
central  banking  authorities  directly  impact  our  cost  of  funds  and  may  impact  the  value  of  financial  instruments  we  hold.  In 
addition,  changes  in  monetary  policy  may  affect  the  credit  quality  of  our  customers.  Changes  in  domestic  and  international 
monetary policy are beyond our control and difficult to predict.

Our revenues and profitability have historically declined and are likely to decline significantly during past and future 

periods of low trading volume in the financial markets in which we offer our products and services.

The global financial services markets are, by their nature, risky and volatile and are directly affected by many national 
and  international  factors  that  are  beyond  our  control.  Although  we  believe  that  rising  interest  rates  in  recent  periods  will 
positively impact trading volumes in many of our product offerings, any one of the following factors have caused and may in 
the  future  cause  substantial  changes  in  the  U.S.  and  global  financial  markets,  resulting  in  positive  or  negative  impacts  on 
transactional volume and profitability for our business. These factors include:

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rising global interest rates;

pandemics and other international health emergencies, including the combined impact of COVID-19 with the
flu and other seasonal illnesses;

economic and geopolitical conditions and uncertainties in the United States, Europe, Asia and elsewhere in
the  world,  including  government  deficits,  debt  and  possible  defaults,  austerity  measures,  and  changes  in
central  bank  and/or  fiscal  policies,  including  the  level  and  timing  of  government  debt  issuances,  purchases
and outstanding amounts;

possible  political  turmoil  with  respect  to  the  U.S.  government,  the  U.K,  the  EU  and/or  its  member  states,
Hong Kong, China, or other major economies around the world;

the  effect  of  Federal  Reserve  Board  and  other  central  banks’  monetary  policies,  increased  capital
requirements for banks and other financial institutions, and other regulatory requirements;

terrorism,  war  and  other  armed  hostilities,  such  as  Russia's  invasion  of  Ukraine  and  the  impact  of  it  and
measures  taken  in  response  thereto,  including  sanctions  imposed  by  governments  and  related  counter-
sanctions;

the impact of short-term or prolonged U.S. government shutdowns, elections or other political events;

inflation, wavering institutional and consumer confidence levels;

the availability of capital for borrowings and investments by our clients and their customers;

the level and volatility of foreign currency exchange rates and trading in certain equity, debt and commodity
markets;

the  level  and  volatility  of  the  difference  between  the  yields  on  corporate  securities  and  those  on  related
benchmark securities; and

margin requirements, capital requirements, credit availability, and other liquidity concerns.

Low  transaction  volumes  for  any  of  our  brokerage  asset  classes  generally  result  in  reduced  revenues.  Under  these
conditions, our profitability is adversely affected since many of our costs are fixed. In addition, although less common, some of 
our transaction revenues are determined on the basis of the value of transactions or on spreads. For these reasons, substantial 
decreases  in  trading  volume,  declining  prices,  and/or  reduced  spreads  could  have  material  adverse  effects  on  our  business, 
financial condition, results of operations and prospects.

Any  downgrades  of  the  U.S.  sovereign  credit  rating  by  one  or  more  of  the  major  credit  rating  agencies  could  have 
material adverse effects on financial markets and economic conditions in the U.S. and throughout the world. This in turn could 
have  a  material  adverse  impact  on  our  business,  financial  condition,  results  of  operations,  and  prospects.  Because  of  the 
unprecedented nature of any negative credit rating actions with respect to U.S. government obligations, the ultimate impacts on 
global financial markets and our business, financial condition, results of operations, and prospects are unpredictable and may 
not  be  immediately  apparent.  Concerns  about  the  sovereign  debt  of  certain  major  economies  have  caused  uncertainty  and 
disruption for financial markets globally, and continued uncertainties loom over the outcome of various governments’ financial 
support  programs  and  the  possibility  that  EU  member  states  or  other  major  economies  may  experience  similar  financial 

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troubles.  Any  downgrades  of  the  long-term  sovereign  credit  rating  of  the  U.S.  or  additional  sovereign  debt  crises  in  major 
economies could cause disruption and volatility of financial markets globally and have material adverse effects on our business, 
financial condition, results of operations and prospects.

Actions taken by governments in response to rising inflation rates may have a material impact on our business. 

Both domestic and international markets experienced significant inflationary pressures in fiscal year 2022 and inflation 
rates in the U.S., as well as in other countries in which we operate, are currently expected to continue at elevated levels for at 
least the near-term. In response, the Federal Reserve in the U.S. and other central banks in various countries have raised, and 
may again raise, interest rates in response to concerns about inflation, which, coupled with reduced government spending and 
volatility  in  financial  markets,  may  have  the  effect  of  further  increasing  economic  uncertainty  and  heightening  related  risks. 
Interest rate increases or other government actions taken to reduce inflation could also result in recessionary pressures in many 
parts of the world. Additionally, these actions have affected FX volumes around the world, causing currency fluctuations and 
rapid changes in valuations that may make certain strategies less appealing for FX market participants. While higher interest 
rates are expected to have a positive impact on our revenues, these currency fluctuations have affected, and may continue to 
affect, the reported value of our assets and liabilities, our expenses, and our cash flows. 

Risks Related to the Geographic Locations of Our Business

Our  business  is  geographically  concentrated  and  could  be  significantly  affected  by  any  adverse  change  in  the 

regions in which we operate.

Historically, our business operations have been substantially located in the U.S. and the U.K. While we are expanding 
our business to new geographic areas, we are still highly concentrated in these areas. Because we derived approximately 36.1% 
and  approximately  30.2%  of  our  total  revenues  on  a  consolidated  basis  for  the  year  ended  December  31,  2022  from  our 
operations  in  the  U.K.  and  the  U.S.,  respectively,  our  business  is  exposed  to  adverse  regulatory  and  competitive  changes, 
economic downturns and changes in political conditions in these countries. If we are unable to identify and successfully manage 
or  mitigate  these  risks,  our  business,  financial  condition,  results  of  operations  and  prospects  could  be  materially  adversely 
affected.

The U.K. exit from the EU could materially adversely impact our customers, counterparties, business, financial 

condition, results of operations and prospects.

On January 1, 2021, the U.K. formally left the EU and U.K.-EU trade became subject to a new agreement that was 
concluded in December of 2020. The exit from the EU is commonly referred to as Brexit. Financial services fall outside of the 
scope of this trade agreement. Instead, the relationship will largely be determined by a series of “equivalence decisions,” each 
of which would grant mutual market access for a limited subset of financial services where either party finds the other party has 
a regulatory regime that achieves similar outcomes to its own. It is currently unknown if or when equivalence decisions will be 
taken. In March 2021, the U.K. and EU agreed a Memorandum of Understanding on Financial Services Regulatory Cooperation 
which creates a structure for dialogue but does not include commitments on equivalence.

In  light  of  ongoing  uncertainties,  market  participants  are  still  adjusting.  The  exact  impact  of  Brexit  on  the  U.K.-EU 
flow of financial services therefore remains unknown. This same uncertainty applies to the consequences for the economies of 
the U.K. and the EU member states as a result of the U.K.’s withdrawal from the EU.

We  implemented  plans  to  ensure  continuity  of  service  in  Europe  and  continue  to  have  regulated  offices  in  place  in 
many  of  the  major  European  markets.  As  part  of  our  ongoing  Brexit  strategy,  ownership  of  BGC  Madrid,  Copenhagen  and 
Frankfurt  &  GFI  Paris,  Madrid  and  Dublin  branches  was  transferred  to  Aurel  BGC  SAS  (a  French-based  operation  and 
therefore  based  in  the  EU)  in  July  2020.  We  have  been  generally  increasing  our  footprint  in  the  EU  which  includes  the 
establishment  of  a  new  branch  office  of  Aurel  BGC  SAS  in  Milan  and  a  new  office  in  Monaco  under  a  new  local  Monaco 
subsidiary.

Regardless of these and other mitigating measures, our European headquarters and largest operations are in London, 
and  market  access  risks  and  uncertainties  have  had  and  could  continue  to  have  a  material  adverse  effect  on  our  customers, 
counterparties, business, financial condition, results of operations and prospects. Furthermore, in the future the U.K. and EU’s 
regulation may diverge, which could disrupt and increase the costs of our operations, and result in a loss of existing levels of 
cross-border market access.

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Risks Related to the Impacts of the COVID-19 Pandemic

The effects of the COVID-19 pandemic continue to significantly disrupt and adversely affect the environment in 
which  we  and  our  customers  and  competitors  operate,  including  the  global  economy,  the  U.S.  economy,  the  global 
financial markets, and our business, financial condition, results of operations and prospects. 

The effects of the COVID-19 pandemic have significantly disrupted and adversely affected the environment in which 
we and our customers and competitors operate, including the global economy, the U.S. economy, the global financial markets, 
and  our  business,  financial  condition,  results  of  operations  and  prospects.  The  effects  of  COVID-19  remain  challenging  to 
predict  due  to  multiple  uncertainties,  including  the  transmissibility,  severity,  and  duration  of  new  virus  variants  and  the 
potential extent of their spread, and the impact on our employees, operations, suppliers, vendors, and clients’ operations. 

On January 30, 2023, the Biden Administration announced its plan to extend the “public health emergency” status of 
COVID-19 for a final time to May 11, 2023. Once such status expires, government programs supporting public health safety 
measures may begin to be rolled back or be eliminated. We will continue to evaluate the nature and extent of the impact of all 
of the foregoing on our business.

Risks Related to New Opportunities/Possible Transactions and Hires

If we are unable to identify and successfully exploit new product, service and market opportunities, including 
through  hiring  new  brokers,  salespeople,  managers,  technology  professionals  and  other  front-office  personnel,  our 
business, financial condition, results of operations, cash flows and prospects could be materially adversely affected.

Because  of  significant  competition  in  our  market,  our  strategy  is  to  broker  more  transactions,  increase  our  share  of 
existing  markets  and  seek  out  new  clients  and  markets.  We  may  face  enhanced  risks  as  these  efforts  to  expand  our  business 
result in our transacting with a broader array of clients and expose us to new products and services and markets. Pursuing this 
strategy may also require significant management attention and hiring expense and potential costs and liability in any litigation 
or  arbitration  that  may  result.  We  may  not  be  able  to  attract  new  clients  or  brokers,  salespeople,  managers,  technology 
professionals or other front-office personnel or successfully enter new markets. If we are unable to identify and successfully 
exploit  new  product,  service  and  market  opportunities,  our  business,  financial  condition,  results  of  operations  and  prospects 
could be materially adversely affected.

We  may  pursue  opportunities  including  strategic  alliances,  acquisitions,  mergers,  investments,  dispositions, 
joint  ventures  or  other  growth  opportunities  or  transformational  transactions  (including  hiring  new  brokers  and 
salespeople), which could present unforeseen integration obstacles or costs and could dilute our stockholders. We may 
also face competition in our acquisition strategy, and such competition may limit such opportunities.

We have explored and continue to explore a wide range of strategic alliances, mergers, investments, acquisitions and 
joint ventures with other financial services companies that have interests in related businesses or other strategic opportunities. 
Such transactions may be necessary in order for us to enter into or develop new products or services or markets, as well as to 
strengthen our current ones.

These opportunities and activities involve a number of risks and challenges, including:

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potential disruption of our ongoing businesses and product, service and market development and distraction
of management;

difficulty retaining and integrating personnel and integrating administrative, operational, financial reporting,
internal control, compliance, technology and other systems;

the necessity of hiring additional managers and other critical professionals and integrating them into current
operations;

increasing the scope, geographic diversity and complexity of our operations;

to  the  extent  that  we  pursue  these  opportunities  internationally,  exposure  to  political,  economic,  legal,
regulatory, operational and other risks that are inherent in operating in a foreign country, including risks of
possible nationalization and/or foreign ownership restrictions, expropriation, price controls, capital controls,
foreign  currency  fluctuations,  regulatory  and  tax  requirements,  economic  and/or  political  instability,
geographic,  time  zone,  language  and  cultural  differences  among  personnel  in  different  areas  of  the  world,
exchange controls and other restrictive government actions, as well as the outbreak of hostilities;

the risks relating to integrating accounting and financial systems and accounting policies and the related risk
of having to recast our historical financial statements;

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potential dependence upon, and exposure to liability, loss or reputational damage relating to systems, controls
and personnel that are not under our control;

addition of business lines in which we have not previously engaged;

potential unfavorable reaction to our strategy by our customers, counterparties, employees, and investors;

the  upfront  costs  associated  with  pursuing  transactions  and  recruiting  personnel,  which  efforts  may  be
unsuccessful in the increasingly competitive marketplace for the most talented producers and managers;

conflicts or disagreements between any strategic alliance or joint venture partner and us;

exposure to potential unknown liabilities of any acquired business, strategic alliance or joint venture that are
significantly larger than we anticipate at the time of acquisition, and unforeseen increased expenses or delays
associated  with  acquisitions,  including  costs  in  excess  of  the  cash  transition  costs  that  we  estimate  at  the
outset of a transaction;

reduction in availability of financing due to tightened credit markets or credit ratings downgrades or defaults
by us, in connection with these opportunities;

a significant increase in the level of our indebtedness in order to generate cash resources that may be required
to effect acquisitions;

dilution  resulting  from  any  issuances  of  shares  of  our  Class  A  common  stock  in  connection  with  these
opportunities;

a reduction of the diversification of our business resulting from any dispositions;

the necessity of replacing certain individuals and functions that are sold in dispositions;

the cost of rebranding and the impact on our market awareness of dispositions;

litigation or regulatory scrutiny with respect to any such transactions, including any related party aspects of
any proposed arrangements;

adverse effects on our liquidity as a result of payment of cash resources;

the impact of any reduction in our asset base resulting from dispositions on our ability to obtain financing or
the terms thereof; and

a lag in the realization of financial benefits from these transactions and arrangements.

We face competition for acquisition targets, which may limit our number of acquisitions and growth opportunities and
may lead to higher acquisition prices or other less favorable terms. As we grow internationally, we may experience additional 
expenses  or  obstacles.  There  can  be  no  assurance  that  we  will  be  able  to  identify,  acquire  or  profitably  manage  additional 
businesses or integrate successfully any acquired businesses without substantial costs, delays or other operational or financial 
difficulties.

In  addition,  the  acquisition  of  regulated  firms  generally  requires  the  consent  of  the  home  jurisdiction  regulator  in 
which  the  target  and  regulated  subsidiaries  are  domiciled.  In  certain  circumstances,  one  or  more  of  these  regulators  may 
withhold their consent, impose restrictions or make their consent subject to conditions which may result in increased costs or 
delays.

Any future growth will be partially dependent upon the continued availability of suitable transactional candidates at 
favorable prices and upon advantageous terms and conditions, which may not be available to us, as well as sufficient liquidity 
to  fund  these  transactions.  Future  transactions  and  any  necessary  related  financings  also  may  involve  significant  transaction-
related expenses, which include payment of break-up fees, assumption of liabilities, including compensation, severance, lease 
termination, and other restructuring costs, and transaction and deferred financing costs, among others. In addition, there can be 
no assurance that such transactions will be accretive or generate favorable operating margins. The success of these transactions 
will  also  be  determined  in  part  by  the  ongoing  performance  of  the  acquired  companies  and  the  acceptance  of  acquired 
employees of our equity-based compensation structure and other variables which may be different from the existing industry 
standards or practices at the acquired companies.

We will need to successfully manage the integration of recent and future acquisitions and future growth effectively. 
Such  integration  and  additional  growth  may  place  a  significant  strain  upon  our  management,  administrative,  operational, 
financial reporting, internal control and compliance infrastructure. Our ability to grow depends upon our ability to successfully 
hire,  train,  supervise  and  manage  additional  employees,  expand  our  management,  administrative,  operational,  financial 
reporting,  compliance  and  other  control  systems  effectively,  allocate  our  human  resources  optimally,  maintain  clear  lines  of 

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communication between our transactional and management functions and our finance and accounting functions, and manage the 
pressure  on  our  management,  administrative,  operational,  financial  reporting,  compliance  and  other  control  infrastructure. 
Additionally, managing future growth may be difficult due to new geographic locations, markets and business lines. We may 
not realize the full benefits that we anticipate from strategic alliances, acquisitions, joint ventures or other growth opportunities. 
There can be no assurance that we will be able to accurately anticipate and respond to the changing demands we will face as we 
integrate  recent  future  acquisitions  and  continue  to  expand  our  operations,  and  we  may  not  be  able  to  manage  growth 
effectively or to achieve growth at all.

From time to time, we may also seek to dispose of portions of our businesses, or otherwise reduce our ownership, each 
of  which  could  materially  affect  our  cash  flows  and  results  of  operations.  Dispositions  involve  significant  risks  and 
uncertainties, such as ability to sell such businesses at satisfactory prices and terms and in a timely manner (including long and 
costly  sales  processes  and  the  possibility  of  lengthy  and  potentially  unsuccessful  attempts  by  a  buyer  to  receive  required 
regulatory approvals), or at all, disruption to other parts of the business and distraction of management, loss of key employees 
or  customers,  and  exposure  to  unanticipated  liabilities  or  ongoing  obligations  to  support  the  business  following  such 
dispositions. In addition, if such dispositions are not completed for any reason, the market price of our Class A common stock 
may reflect a market assumption that such transactions will occur, and a failure to complete such transactions could result in a 
decline  in  the  market  price  of  our  Class  A  common  stock.  Any  of  these  factors  could  have  a  material  adverse  effect  on  our 
business, financial condition, results of operations and prospects. 

We have offerings linked to cryptocurrencies that could expose us to technology, regulatory and financial risks. 

We have offerings linked to cryptocurrencies in certain jurisdictions, and may expand the types of these offerings, the 
associated types of cryptocurrencies and the jurisdictions in which these offerings are offered. Specifically, BGC provides its 
cryptocurrency  offerings  through  Lucera  by  providing  connectivity,  hosting  and  trading  platforms  and  through  kACE2,  its 
analytics, pricing and distribution software.

The  technology  underlying  cryptocurrencies  and  other  similar  digital  assets  is  evolving  at  a  rapid  pace  and  may  be 
vulnerable to cyberattacks or have other inherent weaknesses that are not yet apparent. There is a high degree of fraud, theft, 
cyberattacks  and  other  forms  of  risk  in  the  cryptocurrency  space.  It  is  possible,  for  example,  for  electronic  wallet  keys  to 
become lost or stolen, for blockchains to experience detrimental changes, such as forks, or for cryptocurrency exchanges and 
custodians  to  experience  cybersecurity  incidents.  If  such  events  impact  our  cryptocurrency  offerings,  we  may  experience 
material adverse effect on our business, financial condition, results of operations and prospects in the future.

In  addition,  cryptocurrency  markets  experienced  significant  historical  material  price  fluctuations  in  2022,  and  may 
continue to experience periods of extreme volatility again in the future. Several entities in the digital asset industry have been, 
and  may  continue  to  be,  negatively  affected,  including  to  the  point  of  insolvency  further  undermining  confidence  in 
cryptocurrencies. These events are continuing to develop and it is not possible to predict at this time all of the risks that they 
may pose to the digital asset industry. If markets for any cryptocurrencies linked to the offerings we provide continue to suffer 
severe  fluctuations,  our  customers  could  experience  significant  losses  and  we  could  lose  their  business,  which  in  turn  could 
have a material adverse effect on our business, financial condition, results of operations and prospects in the future.

In the U.S. the SEC, CFTC, state and federal agencies are reviewing virtual currency businesses and have and or may 
enact  regulations  that  restrict  business  activities  and  or  require  additional  licenses  to  conduct  certain  businesses.  In  addition, 
many  foreign  regulators  and  legislatures  have  taken  action  against  virtual  currency  businesses  or  have  enacted  restrictive 
regulations.  These  regulations  may  negatively  impact  our  ability  to  offer  different  products  in  different  regions  and/or 
negatively  impact  our  ability  to  deal  with  certain  customers  depending  on  where  they  are  located.  If  licenses  are  required,  it 
may take a considerable amount of time to obtain the necessary approvals from the respective regimes. Any of these factors 
could have a material adverse effect on our business, financial condition, results of operations and prospects in the future.

Risks Related to Change in LIBOR

We may be adversely affected by the transition away from LIBOR and the use of SOFR or other alternative 

reference rates.

The  withdrawal  and  replacement  of  LIBOR  with  alternative  benchmarks  introduces  risks  for  our  clients  and  the 
financial  services  industry.  Various  financial  instruments  are  linked  to  the  LIBOR  benchmark,  and  any  failure  by  market 
participants  and  regulators  to  successfully  introduce  benchmark  rates  to  replace  LIBOR  and  implement  effective  transitional 
arrangements  to  address  the  discontinuation  of  LIBOR  could  negatively  affect  our  clients  and  the  global  financial  markets. 
While  we  have  taken  steps  to  minimize  the  consequences  of  the  transition  from  LIBOR  on  our  business  there  can  be  no 
assurance  that  the  withdrawal  and  replacement  of  LIBOR  will  not  have  a  material  adverse  effect  on  our  business,  financial 
condition, results of operations and prospects in the future.

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Risks Related to Liquidity, Funding and Indebtedness

We  have  debt,  which  could  adversely  affect  our  ability  to  raise  additional  capital  to  fund  our  operations  and 
activities, limit our ability to react to changes in the economy or our business, expose us to interest rate risk, impact our 
ability  to  obtain  or  maintain  favorable  credit  ratings  and  prevent  us  from  meeting  our  obligations  under  our 
indebtedness. 

Our indebtedness, which at December 31, 2022 was $1,049.2 million, may have important, adverse consequences to us 

and our investors, including: 

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it may limit our ability to borrow money, dispose of assets or sell equity to fund our working capital, capital
expenditures, dividend payments, debt service, strategic initiatives or other obligations or purposes;

it may limit our flexibility in reacting to, changes in the economy, the markets, regulatory requirements, our
operations or business;

our  financial  leverage  may  be  higher  than  some  of  our  competitors,  which  may  place  us  at  a  competitive
disadvantage;

it may make us more vulnerable to downturns in the economy or our business;

it may require a substantial portion of our cash flow from operations to make interest payments;

it may make it more difficult for us to satisfy other obligations;

it may increase the risk of a future downgrade of our credit ratings or otherwise impact our ability to obtain or
maintain  investment-grade  credit  ratings,  which  could  increase  future  debt  costs  and  limit  the  future
availability of debt financing;

we  may  not  be  able  to  borrow  additional  funds  or  refinance  existing  debt  as  needed  or  take  advantage  of
business opportunities as they arise, pay cash dividends or repurchase shares of our Class A common stock
and purchase limited partnership units; and

there  would  be  a  material  adverse  effect  on  our  business,  financial  condition,  results  of  operations  and
prospects  if  we  were  unable  to  service  our  indebtedness  or  obtain  additional  financing  or  refinance  our
existing debt on terms acceptable to us.

To the extent that we incur additional indebtedness or seek to refinance our existing debt, the risks described above 
could increase. In addition, our actual cash requirements in the future may be greater than expected and may impact the rate at 
which we make payments of obligations or occur additional obligations. Our cash flow from operations may not be sufficient to 
service our outstanding debt or to repay outstanding debt as it becomes due, and we may not be able to borrow money, dispose 
of assets or otherwise raise funds on acceptable terms, or at all, to service or refinance our debt.

Some of our borrowings have variable interest rates. As a result, a change in market interest rates has and could have a 
material  adverse  effect  on  our  interest  expense.  Both  domestic  and  international  markets  experienced  significant  inflationary 
pressures  in  fiscal  year  2022  and  inflation  rates  in  the  U.S.,  as  well  as  in  other  countries  in  which  we  operate,  are  currently 
expected to continue at elevated levels for at least the near-term. In response, the Federal Reserve in the U.S. and other central 
banks in various countries have raised, and may again raise, interest rates in response to concerns about inflation.

A continued rise in interest rates could further increase our cost of funds, which could reduce our net income. In an 
effort  to  limit  our  exposure  to  interest  rate  fluctuations,  we  may  rely  on  interest  rate  hedging  or  other  interest  rate  risk 
management activities. These activities may limit our ability to participate in the benefits of lower interest rates with respect to 
the  hedged  borrowings.  Adverse  developments  resulting  from  changes  in  interest  rates  or  hedging  transactions  could  have  a 
material adverse effect on our business, financial condition, results of operations and prospects.

Some of our borrowings will mature in the near future. For example, our 5.375% Senior Notes are due July 24, 2023, 
and have an outstanding aggregate principal amount of $450.0 million, and our 3.750% Senior Notes are due October 1, 2024, 
and  have  an  outstanding  aggregate  principal  amount  of  $300.0  million,  and  our  4.375%  Senior  Notes  are  due  December  15, 
2025  and  have  an  outstanding  aggregate  principal  amount  of  $300  million.  Our  ability  to  meet  our  payment  and  other 
obligations under our debt depends on our ability to generate and maintain significant cash flow in the near future or to access 
alternate  sources  of  liquidity.  This,  to  some  extent,  is  subject  to  general  economic,  financial,  competitive,  legislative  and 
regulatory factors as well as other factors that are beyond our control. We cannot assure you that our business will generate cash 
flow from operations, or that additional capital will be available to us, in an amount sufficient to enable us to meet our payment 
obligations under our borrowings and to fund other liquidity needs. If we are not able to generate sufficient cash flow to service 
our debt obligations and our unable to refinance our obligations on terms or at interest rates acceptable to us at all, we may need 
sell assets, reduce or delay capital investments, or seek to raise additional capital. If we are unable to implement one or more of 

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these  alternatives,  our  cash  flow  may  be  significantly  reduced,  which  could  have  a  material  adverse  effect  on  our  business, 
financial condition, results of operations and prospects.

We  are  dependent  upon  availability  of  adequate  funding  and  liquidity  to  meet  our  clearing  margin  requirements, 
among other financial needs. Clearing margin is the amount of cash, guarantees or similar collateral that we must provide or 
deposit with our third-party clearing organizations in support of our obligations under contractual clearing arrangements with 
these organizations. Historically, these needs have been satisfied from internally generated funds and proceeds from debt and 
equity  financings.  We  have  also  relied  on  arrangements  with  Cantor  to  clear  certain  of  our  transactions  under  the  clearing 
agreement we entered into with Cantor in November 2008, which was amended in June 2020. Although we have historically 
been able to raise debt on acceptable terms, deterioration of the world’s credit markets could make it more difficult for us to 
refinance or replace such indebtedness in a timely manner or on acceptable terms. Further, if for any reason we need to raise 
additional funds, including in order to meet regulatory capital requirements and/or clearing margin requirements arising from 
growth  in  our  brokerage  business,  to  complete  acquisitions  or  otherwise,  we  may  not  be  able  to  obtain  additional  financing 
when needed. If we cannot raise additional funds on acceptable terms, we may not be able to develop or enhance our business, 
take advantage of future growth opportunities or respond to competitive pressure or unanticipated requirements.

Our Revolving Credit Agreement contains restrictions that may limit our flexibility in operating our business.

Our  Revolving  Credit  Agreement  contains  covenants  that  could  impose  operating  and  financial  restrictions  on  us, 

including restrictions on our ability to, among other things and subject to certain exceptions:

•

•

•

•

•

•

•

•

•

create liens on certain assets;

incur additional debt;

make significant investments and acquisitions;

consolidate, merge, sell or otherwise dispose of all or substantially all of our assets;

dispose of certain assets;

pay additional dividends on or make additional distributions in respect of our capital stock or make restricted
payments;

repurchase shares of our Class A common stock or purchase limited partnership units;

enter into certain transactions with our affiliates; and

place restrictions on certain distributions from subsidiaries.

Indebtedness  that  we  may  enter  into  in  the  future,  if  any,  could  also  contain  similar  or  additional  covenants  or
restrictions.  Any  of  these  restrictions  could  limit  our  ability  to  adequately  plan  for  or  react  to  market  conditions  and  could 
otherwise  restrict  certain  of  our  corporate  activities.  Any  material  failure  to  comply  with  these  covenants  could  result  in  a 
default  under  the  Revolving  Credit  Agreement  as  well  as  instruments  governing  our  future  indebtedness.  Upon  a  material 
default,  unless  such  default  were  cured  by  us  or  waived  by  lenders  in  accordance  with  the  Revolving  Credit  Agreement,  the 
lenders under such agreement could elect to invoke various remedies under the agreement, including potentially accelerating the 
payment  of  unpaid  principal  and  interest,  terminating  their  commitments  or,  however  unlikely,  potentially  forcing  us  into 
bankruptcy or liquidation. In addition, a default or acceleration under such agreement could trigger a cross default under other 
agreements,  including  potential  future  debt  arrangements.  Although  we  believe  that  our  operating  results  will  be  more  than 
sufficient to meet all of these obligations, including potential future indebtedness, no assurance can be given that our operating 
results  will  be  sufficient  to  service  our  indebtedness  or  to  fund  all  of  our  other  expenditures  or  to  obtain  additional  or 
replacement financing on a timely basis and on reasonable terms in order to meet these requirements when due.

Risks Related to Our Senior Notes

Credit ratings downgrades or defaults by us could adversely affect us.

Our  credit  ratings  and  associated  outlooks  are  critical  to  our  reputation  and  operational  and  financial  success.  Our 
credit  ratings  and  associated  outlooks  are  influenced  by  a  number  of  factors,  including:  operating  environment,  regulatory 
environment,  earnings  and  profitability  trends,  the  rating  agencies’  view  of  our  funding  and  liquidity  management  practices, 
balance sheet size/composition and resulting leverage, cash flow coverage of interest, composition and size of the capital base, 
available liquidity, outstanding borrowing levels, our competitive position in the industry, our relationships in the industry, our 
relationship with Cantor, acquisitions or dispositions of assets and other matters. A credit rating and/or the associated outlook 
can  be  revised  upward  or  downward  at  any  time  by  a  rating  agency  if  such  rating  agency  decides  that  circumstances  of  that 

44

company or related companies warrant such a change. Any adverse ratings change or a downgrade in the credit ratings of BGC, 
Cantor  or  any  of  their  other  affiliates,  and/or  the  associated  ratings  outlooks  could  adversely  affect  the  availability  of  debt 
financing  to  us  on  acceptable  terms,  as  well  as  the  cost  and  other  terms  upon  which  we  may  obtain  any  such  financing.  In 
addition,  our  credit  ratings  and  associated  outlooks  may  be  important  to  clients  of  ours  in  certain  markets  and  in  certain 
transactions. A company’s contractual counterparties may, in certain circumstances, demand collateral in the event of a credit 
ratings or outlook downgrade of that company. Further, interest rates payable on our debt, including with respect to our 5.375% 
Senior Notes, 3.750% Senior Notes and 4.375% Senior Notes, may increase in the event that our ratings decline.

As of December 31, 2022, BGC Partners’ public long-term credit ratings were BBB- from Fitch Ratings Inc. and S&P 
Global Ratings, BBB from Kroll Bond Rating Agency and BBB+ from Japan Credit Rating Agency, Ltd. and the associated 
outlooks on all the ratings were stable. No assurance can be given that the credit ratings will remain unchanged in the future. 
Any additional indebtedness that we incur, as well as any negative change to our credit ratings and associated outlooks, may 
restrict our ability to raise additional capital or refinance debt on favorable terms, and consequently. any resulting impacts on 
our  funding  access,  liquidity  or  creditworthiness  perception  among  our  clients,  counterparties,  lenders,  investors,  or  other 
market  participants,  could  have  a  material  adverse  effect  on  our  business,  financial  condition,  results  of  operations  and 
prospects.

Our acquisitions may require significant cash resources and may lead to a significant increase in the level of our 

indebtedness.

Potential  future  acquisitions  may  lead  to  a  significant  increase  in  the  level  of  our  indebtedness.  We  may  enter  into 
short- or long-term financing arrangements in connection with acquisitions which may occur from time to time. In addition, we 
may  incur  substantial  non-recurring  transaction  costs,  including  break-up  fees,  and  assume  new  liabilities  and  expenses.  The 
increased  level  of  our  consolidated  indebtedness  in  connection  with  potential  acquisitions  may  restrict  our  ability  to  raise 
additional  capital  on  favorable  terms,  and  such  leverage,  and  any  resulting  liquidity  or  credit  issues,  could  have  a  material 
adverse effect on our business, financial condition, results of operations and prospects.

We may incur substantially more debt or take other actions which would intensify the risks discussed herein.

We  may  incur  substantial  additional  debt  in  the  future,  some  of  which  may  be  secured  debt.  We  are  not  restricted 
under  the  terms  of  our  existing  debt  arrangements  and  instruments,  including  the  indentures  governing  our  5.375%  Senior 
Notes, 3.750% Senior Notes and 4.375% Senior Notes, from incurring additional debt, securing existing or future debt (with 
certain exceptions, including to the extent already secured), recapitalizing our debt or taking a number of other actions that are 
not limited by the terms of our debt instruments that could have the effect of exacerbating the risks described herein.

We may not have the funds necessary to repurchase our 5.375% Senior Notes, 3.750% Senior Notes or 4.375% 

Senior Notes upon a change of control triggering event as required by the indentures governing these notes.

Upon  the  occurrence  of  a  “change  of  control  triggering  event”  (as  defined  in  the  indentures  governing  the  5.375% 
Senior  Notes  ,  the  3.750%  Senior  Notes  and  the  4.375%  Senior  Notes),  unless  we  have  exercised  our  right  to  redeem  such 
notes, holders of the notes will have the right to require us to repurchase all or any part of their notes at a price in cash equal to 
101%  of  the  then-outstanding  aggregate  principal  amount  of  the  notes  repurchased  plus  accrued  and  unpaid  interest,  if  any. 
There  can  be  no  assurance  that  we  would  have  sufficient,  readily  available  financial  resources,  or  would  be  able  to  arrange 
financing,  to  repurchase  the  5.375%  Senior  Notes,  the  3.750%  Senior  Notes  or  the  4.375%  Senior  Notes  upon  a  “change  of 
control triggering event.” A failure by us to repurchase the notes when required would result in an event of default with respect 
to  the  notes.  In  addition,  such  failure  may  also  constitute  an  event  of  default  and  result  in  the  effective  acceleration  of  the 
maturity of our other then-existing indebtedness.

The  requirement  to  offer  to  repurchase  the  5.375%  Senior  Notes,  the  3.750%  Senior  Notes  and  the  4.375% 
Senior Notes upon a “change of control triggering event” may delay or prevent an otherwise beneficial takeover attempt 
of us.

The  requirement  to  offer  to  repurchase  the  5.375%  Senior  Notes,  the  3.750%  Senior  Notes  and  the  4.375%  Senior 
Notes upon a “change of control triggering event” may in certain circumstances delay or prevent a takeover of us and/or the 
removal of incumbent management that might otherwise be beneficial to investors in our Class A common stock.

Risks Related to Our Intellectual Property

45

We  may  not  be  able  to  protect  our  intellectual  property  rights  or  may  be  prevented  from  using  intellectual 

property necessary for our business.

Our  success  is  dependent,  in  part,  upon  our  intellectual  property,  including  our  proprietary  technology.  We  rely 
primarily  on  trade  secret,  contract,  patent,  copyright,  and  trademark  law  in  the  U.S.  and  other  jurisdictions  as  well  as 
confidentiality  procedures  and  contractual  provisions  to  establish  and  protect  our  intellectual  property  rights  to  proprietary 
technologies,  products,  services  or  methods,  and  our  brands.  For  example,  we  regularly  file  patent  applications  to  protect 
inventions arising from our research and development, and we are currently pursuing patent applications around the world. We 
also control access to our proprietary technology and enter into confidentiality and invention assignment agreements with our 
employees and consultants and confidentiality agreements with other third parties. Protecting our intellectual property rights is 
costly and time consuming.

Unauthorized  use  of  our  intellectual  property  could  make  it  more  expensive  to  do  business  and  harm  our  operating 
results. We cannot ensure that our intellectual property rights are sufficient to protect our competitive advantages or that any 
particular  patent,  copyright  or  trademark  is  valid  and  enforceable,  and  all  patents  ultimately  expire.  In  addition,  the  laws  of 
some foreign countries may not protect our intellectual property rights to the same extent as the laws in the U.S., or at all. Any 
significant impairment of our intellectual property rights could harm our business or our ability to compete.

Many  companies,  including  those  in  the  computer  and  financial  services  industries  own  large  numbers  of  patents, 
copyrights, and trademarks and sometimes file lawsuits based on allegations of infringement or other violations of intellectual 
property rights. In addition, there has been a proliferation of patents applicable to these industries and a substantial increase in 
the number of such patent applications filed. Under current law, U.S. patent applications typically remain secret for 18 months 
or,  in  some  cases,  until  a  patent  is  issued.  Because  of  technological  changes  in  these  industries,  patent  coverage,  and  the 
issuance  of  new  patents,  it  is  possible  certain  components  of  our  products  and  services  may  unknowingly  infringe  existing 
patents  or  other  intellectual  property  rights  of  others.  Although  we  have  taken  steps  to  protect  ourselves,  there  can  be  no 
assurance that we will be aware of all patents, copyrights or trademarks that may pose a risk of infringement by our products 
and  services.  Generally,  it  is  not  economically  practicable  to  determine  in  advance  whether  our  products  or  services  may 
infringe the present or future rights of others.

Accordingly, we may face claims of infringement or other violations of intellectual property rights that could interfere 
with  our  ability  to  use  intellectual  property  or  technology  that  is  material  to  our  business.  In  addition,  restrictions  on  the 
distribution of some of the market data generated by our brokerage desks could limit the comprehensiveness and quality of the 
data we are able to distribute or sell. The number of such third-party claims may grow. Our technologies may not be able to 
withstand such third-party claims or rights against their use.

We may have to rely on litigation to enforce our intellectual property rights, protect our trade secrets, determine the 
validity and scope of the rights of others or defend against claims of infringement or invalidity. Any such claims or litigation, 
whether  successful  or  unsuccessful,  could  result  in  substantial  costs,  and  the  diversion  of  resources  and  the  attention  of 
management, any of which could materially negatively affect our business. Responding to these claims could also require us to 
enter into royalty or licensing agreements with the third parties claiming infringement, stop selling or redesign affected products 
or services or pay damages on our own behalf or to satisfy indemnification commitments with our customers. Such royalty or 
licensing  agreements,  if  available,  may  not  be  available  on  terms  acceptable  to  us,  and  may  negatively  affect  our  business, 
financial condition, results of operations and prospects.

If  our  licenses  or  services  from  third  parties  are  terminated  or  adversely  changed  or  amended  or  contain 
material defects or errors, or if any of these third parties were to cease doing business or if products or services offered 
by  third  parties  were  to  contain  material  defects  or  errors,  our  ability  to  operate  our  business  may  be  materially 
adversely affected.

We  license  databases,  software  and  services  from  third  parties,  much  of  which  is  integral  to  our  systems  and  our 
business. The licenses are terminable if we breach or have been perceived to have breached our obligations under the license 
agreements.  If  any  material  licenses  were  terminated  or  adversely  changed  or  amended,  if  any  of  these  third  parties  were  to 
cease doing business or if any licensed software or databases licensed by these third parties were to contain material defects or 
errors, we may be forced to spend significant time and money to replace the licensed software and databases, and our ability to 
operate  our  business  may  be  materially  adversely  affected.  Further,  any  errors  or  defects  in  third-party  services  or  products 
(including hardware, software, databases, cloud computing and other platforms and systems) or in services or products that we 
develop ourselves, could result in errors in, or a failure of our services or products, which could harm our business. Although 
we take steps to locate replacements, there can be no assurance that the necessary replacements will be available on acceptable 
terms, if at all. There can be no assurance that we will have an ongoing license to use all intellectual property which our systems 
require, the failure of which could have a material adverse effect on our business, financial condition, results of operations and 
prospects.

46

Risks Related to Our IT Systems and Cyber-Security

Defects or disruptions in our technology or services could diminish demand for our products and services and 

subject us to liability.

Because  our  technology,  products  and  services  are  complex  and  use  or  incorporate  a  variety  of  computer  hardware, 
software and databases, both developed in-house and acquired from third party vendors, our technology, products and services 
may have errors or defects. Errors and defects could result in unanticipated downtime or failure and could cause financial loss 
and harm to our reputation and our business. We have from time to time found defects and errors in our technology, products 
and  service  and  defects  and  errors  in  our  technology,  products  or  services  may  be  detected  in  the  future.  In  addition,  our 
customers  may  use  our  technology,  products  and  services  in  unanticipated  ways  that  may  cause  a  disruption  for  other 
customers.  As  we  acquire  companies,  we  may  encounter  difficulty  in  incorporating  the  acquired  technologies,  products  and 
services,  and  maintaining  the  quality  standards  that  are  consistent  with  our  technology,  products  and  services.  Since  our 
customers use our technology, products and services for important aspects of their business and for financial transactions, any 
errors, defects, or disruptions in such technology, products and services or other performance problems with our technology, 
products and services could subject our customers to financial loss and hurt our reputation.

Malicious cyber-attacks and other adverse events affecting our operational systems or infrastructure, or those 
of third parties, could disrupt our business, result in the disclosure of confidential information, damage our reputation 
and cause losses or regulatory penalties.

Our businesses require us to process and monitor, on a daily basis, a very large number of transactions, many of which 
are  highly  complex,  across  numerous  and  diverse  markets  in  many  currencies.  Developing  and  maintaining  our  operational 
systems  and  infrastructure  are  challenging,  particularly  as  a  result  of  us  and  our  clients  entering  into  new  businesses, 
jurisdictions and regulatory regimes, rapidly evolving legal and regulatory requirements and technological shifts. Our financial, 
accounting, data processing or other operating and compliance systems and facilities may fail to operate properly or become 
disabled as a result of events that are wholly or partially beyond our control, including malicious cyber-attacks or other adverse 
events, which may adversely affect our ability to process these transactions or provide services or products.

In  addition,  our  operations  rely  on  the  secure  processing,  storage  and  transmission  of  confidential  and  other 
information  on  our  computer  systems  and  networks.  Although  we  take  protective  measures,  such  as  software  programs, 
firewalls  and  similar  technology,  to  maintain  the  confidentiality,  integrity  and  availability  of  our  and  our  customers’ 
information, and endeavor to modify these protective measures as circumstances warrant, the nature of cyber threats continues 
to  evolve.  As  a  result,  our  computer  systems,  software  and  networks  may  be  vulnerable  to  unauthorized  access,  loss  or 
destruction  of  data  (including  confidential  customer  information),  account  takeovers,  unavailability  or  disruption  of  service, 
computer viruses, acts of vandalism, or other malicious code, ransomware, hacking, phishing and other cyber-attacks and other 
adverse events that could have an adverse security impact. Despite the defensive measures we have taken, these threats may 
come from external forces, such as governments, nation-state actors, organized crime, hackers, and other third parties, including 
outsource or infrastructure-support providers and application developers, or may originate internally from within us. Given the 
high volume of transactions, certain errors may be repeated or compounded before they are discovered and rectified.

We also face the risk of operational disruption, failure, termination or capacity constraints of any of the third parties 
that facilitate our business activities, including vendors, customers, counterparties, exchanges, clearing agents, clearinghouses 
or  other  financial  intermediaries.  Such  parties  could  also  be  the  source  of  a  cyber-attack  on  or  breach  of  our  operational 
systems, network, data or infrastructure. Malicious actors may also attempt to compromise or induce our employees, clients or 
other  users  of  our  systems  to  disclose  sensitive  information  or  provide  access  to  our  data,  and  these  types  of  risks  may  be 
difficult to detect or prevent.

There  have  been  an  increasing  number  of  ransomware,  hacking,  phishing  and  other  cyber-attacks  in  recent  years  in 
various  industries,  including  ours,  and  cyber-security  risk  management  has  been  the  subject  of  increasing  focus  by  our 
regulators. Like other companies, we have on occasion experienced, and may continue to experience, threats to our systems, 
including viruses, phishing and other cyber-attacks. The number and complexity of these threats continue to increase over time. 
The  techniques  used  in  these  attacks  are  increasingly  sophisticated,  change  frequently  and  are  often  not  recognized  until 
launched. If one or more cyber-attacks occur, it could potentially jeopardize the confidential, proprietary and other information 
processed  and  stored  in,  and  transmitted  through,  our  computer  systems  and  networks,  or  otherwise  cause  interruptions  or 
malfunctions  in  our,  as  well  as  our  customers’  or  other  third  parties’  operations,  which  could  result  in  reputational  damage, 
financial losses, customer dissatisfaction and/or regulatory penalties, which may not in all cases by covered by insurance. If an 
actual, threatened or perceived cyber-attack or breach of our security occurs, our clients could lose confidence in our platforms 
and solutions, security measures and reliability, which would materially harm our ability to retain existing clients and gain new 
clients. As a result of any such attack or breach, we may be required to expend significant resources to repair system, network 

47

or  infrastructure  damage  and  to  protect  against  the  threat  of  future  cyber-attacks  or  security  breaches.  We  could  also  face 
litigation or other claims from impacted individuals as well as substantial regulatory sanctions or fines.

The  extent  of  a  particular  cyber-attack  and  the  steps  that  we  may  need  to  take  to  investigate  the  attack  may  not  be 
immediately  clear,  and  it  may  take  a  significant  amount  of  time  before  such  an  investigation  can  be  completed  and  full  and 
reliable information about the attack is known. While such an investigation is ongoing, we may not necessarily know the full 
extent of the harm caused by the cyber-attack, and any resulting damage may continue to spread. Furthermore, it may not be 
clear how best to contain and remediate the harm caused by the cyber-attack, and certain errors or actions could be repeated or 
compounded  before  they  are  discovered  and  remediated.  Any  or  all  of  these  factors  could  further  increase  the  costs  and 
consequences of a cyber-attack.

Our regulators in recent years have increased their examination and enforcement focus on all matters of our business, 
especially  matters  relating  to  cyber-security  threats,  including  the  assessment  of  firms’  vulnerability  to  cyber-attacks.  In 
particular,  regulatory  concerns  have  been  raised  about  firms  establishing  effective  cyber-security  governance  and  risk 
management policies, practices and procedures that enable the identification of risks, testing and monitoring of the effectiveness 
of such procedures and adaptation to address any weaknesses; protecting firm networks and information; data loss prevention, 
identifying and addressing risk associated with remote access to client information and fund transfer requests; identifying and 
addressing  risks  associated  with  customers  business  partners,  counterparties,  vendors,  and  other  third  parties,  including 
exchanges and clearing organizations; preventing and detecting unauthorized access or activities; adopting effective mitigation 
and business continuity plans to timely and effectively address the impact of cyber-security breaches; and establishing protocols 
for reporting cyber-security incidents. As we enter new jurisdictions or different product area verticals, we may be subject to 
new areas of risk or to cyber-attacks in areas in which we have less familiarity and tools. A technological breakdown could also 
interfere with our ability to comply with financial reporting requirements. The SEC has issued guidance stating that, as a public 
company, we are expected to have controls and procedures that relate to cybersecurity disclosure, and are required to disclose 
information relating to certain cyber-attacks or other information security breaches in disclosures required to be made under the 
federal securities laws. While any insurance that we may have that covers a specific cyber-security incident may help to prevent 
our realizing a significant loss from the incident, it would not protect us from the effects of adverse regulatory actions that may 
result from the incident or a finding that we had inadequate cyber-security controls, including the reputational harm that could 
result from such regulatory actions.

Additionally, data privacy is subject to frequently changing rules and regulations in countries where we do business. 
For example, rights in relation to an individual’s personal data in the EU and U.K. are governed respectively by the General 
Data Protection Regulation (“GDPR”) in the EU and the equivalent Data Protection Act 2018 in the U.K. Since May 25, 2018, 
when this legislation came into effect, we have been subject to new compliance obligations in relation to such personal data and 
the possibility of significant financial penalties for non-compliance. We are also subject to certain U.S. federal and state laws 
governing the protection of personal data. These laws and regulations are increasing in complexity and number. In addition to 
the increased cost of compliance, our failure to successfully implement or comply with appropriate processes to adhere to the 
GDPR  and  other  laws  and  regulations  relating  to  personal  data  could  result  in  substantial  financial  penalties  for  non-
compliance, expose us to litigation risk and harm our reputation.

Risks Relating to Our Key Personnel and Employee Turnover

The loss of one or more of our key executives, the development of future talent and the ability of certain key 
employees  to  devote  adequate  time  and  attention  to  us  are  a  key  part  of  the  success  of  our  business,  and  failure  to 
continue to employ and have the benefit of these executives may adversely affect our business and prospects.

Our people are our most important resource. We must retain the services of our key employees and strategically recruit 
and  hire  new  talented  employees  to  attract  customer  transactions.  Further,  as  we  diversify  into  future  business  lines  or 
geographic regions, hiring and engagement of effective management in these areas will impact our future success. In addition, 
like other companies, we are experiencing turnover among operational and support staff as a result of wage pressures occurring 
throughout the economy. See “Item 1-Business-Human Capital Management.” If our retention efforts are not successful or our 
turnover rate continues to increase in the future, our business, results of operations and financial condition could be materially 
adversely affected.

Effective succession planning is also important to our long-term success. Failure to transition smoothly and effectively 
transfer  knowledge  to  future  executive  officers  and  key  employees  could  hinder  our  strategic  planning  and  execution.  From 
time to time, senior management, outside directors or other key employees may leave our Company or be absent due to illness 
or other factors. While we strive to reduce the negative impact of such changes, losing certain key employees could result in 
significant  disruptions  to  our  operations.  Hiring,  training,  and  successfully  integrating  replacement  critical  personnel  is  time 
consuming  and,  if  unsuccessful  could  disrupt  our  operations,  and  as  a  result  could  materially  adversely  affect  our  business, 
financial condition, results of operations and prospects.

48

Howard  W.  Lutnick,  who  serves  as  our  Chief  Executive  Officer  and  as  Chairman  of  us  and  Newmark,  is  also  the 
Chairman of the Board, President and Chief Executive Officer of Cantor and President of CFGM, the managing general partner 
of  Cantor.  Stephen  M.  Merkel,  our  Executive  Vice  President  and  General  Counsel,  is  employed  as  Executive  Managing 
Director,  General  Counsel  and  Secretary  of  Cantor  and  Executive  Vice  President  and  Chief  Legal  Officer  of  Newmark.  In 
addition,  Messrs.  Lutnick  and  Merkel  also  hold  offices  at  various  other  affiliates  of  Cantor.  These  key  employees  are  not 
subject to employment agreements with us or any of our subsidiaries.

Currently, Mr. Lutnick typically spends at least 50% of his time and Mr. Merkel typically spends at least 40% of his 
time on our matters. These percentages may vary depending on business developments at us or Newmark or Cantor or any of 
our or Cantor’s other affiliates, including SPACs. As a result, these key employees dedicate only a portion of their professional 
efforts to our business and operations, and there is no contractual obligation for them to spend a specific amount of their time 
with us and/or Cantor and its affiliates. These key employees may not be able to dedicate adequate time and attention to our 
business  and  operations,  and  we  could  experience  an  adverse  effect  on  our  operations  due  to  the  demands  placed  on  these 
members  of  our  management  team  by  their  other  professional  obligations.  In  addition,  these  key  employees’  other 
responsibilities could cause conflicts of interest with us.

Certain  of  our  key  employees  and  officers  are  subject  to  post-employment  restrictive  covenants,  including  non-
competition  agreements,  in  connection  with  their  employment  agreements  and/or  the  BGC  Holdings  limited  partnership 
agreements. There can be no assurance that our non-competition agreements will be found enforceable if challenged in certain 
states,  including  states  that  generally  do  not  enforce  post-employment  restrictive  covenants.  The  Federal  Trade  Commission 
recently  proposed  a  rule  that  would  render  non-competition  clauses  unenforceable  in  certain  situations.  If  such  a  rule  were 
passed (in any form) and upheld by the courts, it could have a materially adverse impact on any applicable post-employment 
restrictive  covenants  currently  in  place.  Additionally,  the  BGC  Holdings  limited  partnership  agreement  and  the  Newmark 
Holdings  limited  partnership  agreements  to  the  extent  that  our  executive  officers  and  employees  continue  to  hold  Newmark 
Holdings  limited  partnership  units,  which  include  non-competition  and  other  arrangements  applicable  to  our  key  employees 
who are limited partners of BGC Holdings and/or Newmark Holdings, may not prevent our key employees, including Messrs. 
Lutnick and Merkel, whose employment by Cantor is not subject to these provisions in the limited partnership agreements, from 
resigning or competing against us.

In addition, our success has largely been dependent on the efforts of Mr. Lutnick and other executive officers. Should 
Mr. Lutnick or our other most senior executives leave or otherwise become unavailable to render services to us, their loss could 
disrupt our operations, adversely impact employee retention and morale, and seriously harm our business.

Should any of our key employees join an existing competitor, form a competing company, offer services to Cantor or 
any affiliates that compete with our products, services or otherwise leave us, some of our customers could choose to use the 
services of that competitor or another competitor instead of our services, which could adversely affect our revenues and as a 
result could materially adversely affect our business, financial condition, results of operations and prospects.

Risks Related to Internal Controls

If we fail to implement and maintain an effective internal control environment, our operations, reputation and 
stock  price  could  suffer,  we  may  need  to  restate  our  financial  statements,  and  we  may  be  delayed  or  prevented  from 
accessing the capital markets.

As  a  public  company,  we  are  required,  under  Section  404  of  the  Sarbanes-Oxley  Act,  to  furnish  a  report  by 
management  on,  among  other  things,  the  effectiveness  of  our  internal  control  over  financial  reporting.  This  assessment  is 
required  to  include  disclosure  of  any  material  weaknesses  identified  by  our  management  in  our  key  internal  controls  over 
financial reporting. A material weakness is a control deficiency or combination of control deficiencies that results in more than 
a remote likelihood that a material misstatement of annual or interim financial statements will not be prevented or detected. To 
ensure compliance with Section 404, we will continue to evaluate our key internal controls over financial reporting, including 
with respect to acquisitions, which could be both costly and challenging.

Internal controls over financial reporting, no matter how well designed, have inherent limitations. Therefore, internal 
controls determined to be effective can provide only reasonable assurance with respect to financial statement preparation and 
may not prevent or detect all misstatements. Due to the inherent limitations in all control systems, no evaluation of controls can 
provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations 
include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or 
mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people 
or  by  management  override  of  the  controls.  Moreover,  projections  of  any  evaluation  of  effectiveness  to  future  periods  are 
subject to the risk that controls may become inadequate due to changes in conditions, or that the degree of compliance with the 
policies  or  procedures  may  deteriorate.  As  such,  we  could  lose  investor  confidence  in  the  accuracy  and  completeness  of  our 
financial reports, which may have a material adverse effect on our reputation and stock price.

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Our ability to identify and remediate any material weaknesses in our internal controls over financial reporting could 
affect our ability to prepare financial reports in a timely manner, control our policies, procedures, operations and assets, assess 
and  manage  our  operational,  regulatory  and  financial  risks,  and  integrate  our  acquired  businesses.  Similarly,  we  need  to 
effectively manage any growth that we achieve in such a way as to ensure continuing compliance with all applicable control, 
financial  reporting  and  legal  and  regulatory  requirements.  Any  material  failure  to  ensure  full  compliance  with  control  and 
financial reporting requirements could result in restatement, delay or prevent us from accessing the capital markets, and harm 
our reputation and the market price for our Class A common stock.

Risks Related to Seasonality

The financial markets in which we operate are generally affected by seasonality, which could have a material 

adverse effect on our results of operations in a given period.

Traditionally, the financial markets around the world experience lower volume during the summer and at the end of the 
year  due  to  a  general  slowdown  in  the  business  environment  around  holiday  seasons,  and,  therefore,  our  transaction  volume 
levels  may  decrease  during  those  periods.  The  timing  of  local  holidays  also  affects  transaction  volumes.  These  factors  could 
have a material effect on our results of operations in any given period.

The seasonality of our business makes it difficult to determine during the course of the year whether planned results 
will  be  achieved,  and  thus  to  adjust  to  changes  in  expectations.  To  the  extent  that  we  are  not  able  to  identify  and  adjust  for 
changes in expectations or we are confronted with negative conditions that inordinately impact seasonal norms, our business, 
financial condition, results of operations and prospects could be materially adversely affected.

Risks Related to General Market Conditions

Consolidation  and  concentration  of  market  share  in  the  banking,  brokerage,  exchange  and  financial  services 
industries could materially adversely affect our business, financial condition, results of operations and prospects because 
we may not be able to compete successfully.

In  recent  years,  there  has  been  substantial  consolidation  and  concentration  of  market  share  among  companies  in  the 
banking,  brokerage,  exchange,  and  financial  services  industries,  resulting  in  increasingly  large  existing  and  potential 
competitors, and increased concentration in markets dominated by some of our largest customers. In addition, some of our large 
broker-dealer  customers,  such  as  Deutsche  Bank,  Barclays,  Goldman  Sachs,  and  Credit  Suisse,  have  reduced  their  sales  and 
trading business in fixed income, currency, and commodities. This is in addition to the reductions in these businesses already 
completed by customers, including Morgan Stanley, UBS, and The Royal Bank of Scotland.

The  combination  of  this  consolidation  and  concentration  of  market  share  and  the  reduction  by  large  customers  of 
certain  businesses  may  lead  to  increased  concentration  among  our  brokerage  customers,  which  may  reduce  our  ability  to 
negotiate pricing and other matters with our customers and lower volumes. Additionally, the sales and trading global revenue 
market share has generally become more concentrated over the past five years among five of the top investment banks across 
equities, fixed income, currencies, and commodities.

We also face existing and potential competition from large exchanges, which seek or may seek to migrate trading from 
the inter-dealer market to their own platform. Consolidation and concentration of market share are occurring in this area as well. 
For example, CME acquired NEX; BATS Global Markets acquired the foreign-exchange trading venue, Hotspot, from KCG 
Holdings (“KCG”). KCG was itself acquired by Virtu in 2017, while BATS was acquired by CBOE. Intercontinental Exchange 
acquired  BondPoint,  a  provider  of  electronic  fixed  income  trading  solutions,  from  Virtu  Financial,  as  well  as  TMC  Bonds. 
Additionally,  Deutsche  Börse  acquired  360T,  CBOE  acquired  Hotspot,  the  Hong  Kong  Exchange  and  Clearing  Limited 
acquired  the  London  Metal  Exchange,  ICE  acquired  NYSE  Euronext,  London  Stock  Exchange  completed  its  acquisition  of 
Refinitiv  as  well  as  Quantile,  MarketAxess  acquired  LiquidityEdge,  and  Tradeweb  acquired  Nasdaq’s  U.S.  fixed  income 
electronic trading platform, formerly known as eSpeed. In 2013, BGC sold the eSpeed platform to Nasdaq, and subsequently 
launched  a  competing  platform,  Fenics  UST.  In  addition,  in  April  of  2019,  Tradeweb  completed  its  initial  public  offering, 
which  may  increase  its  ability  to  hire  and  acquire  in  competition  with  us.  In  March  2021,  TP  ICAP  acquired  Liquidnet,  an 
electronic trading network. Consolidation among exchanges may increase their financial resources and ability to compete with 
us.

Continued consolidation and concentration of market share in the financial services industry and especially among our 
customers could lead to the exertion of additional pricing pressure by our customers, impacting the commissions and spreads 
we  generate  from  our  brokerage  services.  Further,  the  consolidation  and  concentration  among  exchanges,  and  expansion  by 
these exchanges into derivative and other non-equity trading markets, will increase competition for customer trades and place 
additional  pricing  pressure  on  commissions  and  spreads.  These  developments  have  increased  competition  from  firms  with 
potentially greater access to capital resources than we have. Finally, consolidation among our competitors other than exchanges 

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could  result  in  increased  resources  and  product  or  service  offerings  for  our  competitors.  If  we  are  not  able  to  compete 
successfully in the future, our business, financial condition, results of operations and prospects could be materially adversely 
affected.

The  migration  of  OTC  swaps  to  SEF  markets  may  adversely  impact  volumes,  liquidity,  and  demand  for  our 

services in certain markets.

BGC  Derivative  Markets  and  GFI  Swaps  Exchange,  our  subsidiaries,  operate  as  SEFs.  Mandatory  Dodd-Frank  Act 
compliant execution on SEFs by eligible U.S. persons commenced in February 2014 for “made available to trade” products, and 
a wide range of other rules relating to the execution and clearing of derivative products have been finalized.

As customers or market participants transition to the rules associated with the Dodd-Frank Act, they may experience 
disruptions which may negatively impact these products and the market for them may be less robust resulting in less volume 
and liquidity and less demand for our services or the market in general. While we continue to have a compliance framework in 
place  to  comply  with  both  existing  and  proposed  rules  and  regulations,  including  any  potential  relaxation  of  rules  and 
regulations,  our  business  in  these  products  could  be  significantly  reduced  and  our  business,  financial  condition,  results  of 
operations and prospects could be materially adversely affected by applicable regulations.

Even after the award of permanent registration status to our SEFs, we will incur significant additional costs, 
our  revenues  may  be  lower  than  in  the  past  and  our  financial  condition  and  results  of  operations  may  be  materially 
adversely affected by future events.

The  Dodd-Frank  Act  mandated  that  certain  cleared  swaps  (subject  to  an  exemption  from  the  clearing  requirement) 
trade on either a SEF or DCM. SEF and DCM core principles relate to trading and product requirements, compliance and audit-
trail  obligations,  governance  and  disciplinary  requirements,  operational  capabilities,  surveillance  obligations  and  financial 
information and resource requirements. While these principles may or may not be permanently enforced, we do know that we 
will be subject to a more complex regulatory framework going forward, and that there will be significant costs to prepare for 
and  to  comply  with  these  ongoing  regulatory  requirements  and  potential  amendments.  We  will  incur  increased  legal  fees, 
personnel expenses, and other costs, as we work to analyze and implement the necessary legal structure for full compliance with 
all  applicable  regulations.  There  will  also  be  significant  costs  related  to  the  development,  operation  and  enhancement  of  our 
technology  relating  to  trade  execution,  trade  reporting,  surveillance,  compliance  and  back-up  and  disaster  recovery  plans 
designed to meet the requirements of the regulators.

In addition, it is not clear at this point what the impact of these rules and regulations will be on the markets in which 
we  currently  provide  our  SEF  services.  During  the  continued  implementation  of  the  Dodd-Frank  Act  and  related  rules,  the 
markets  for  cleared  and  non-cleared  swaps  may  continue  to  be  less  robust,  there  may  be  less  volume  and  liquidity  in  these 
markets and there may be less demand for our services.

On  June  25,  2020,  the  CFTC  approved  a  final  rule  prohibiting  post-trade  name  give-up  for  swaps  executed, 
prearranged or prenegotiated anonymously on or pursuant to the rules of a SEF and intended to be cleared. The rule provides 
exemptions for package transactions that include a component transaction that is not a swap that is intended to be cleared. The 
rule  went  into  effect  on  November  1,  2020  for  swaps  subject  to  the  trade  execution  requirement  under  the  Commodity 
Exchange  Act  Section  2(h)(8)  and  July  5,  2021  for  swaps  not  subject  to  the  trade  execution  requirement  but  intended  to  be 
cleared.

On  April  6,  2022,  the  SEC  proposed  Rules  for  the  Registration  and  Regulation  of  Security-Based  Swap  Execution 
Facilities. The SEC proposed new Regulation SE under the Exchange Act to create a regime for the registration and regulation 
of security-based SEFs.  The new regulatory framework was one of the major reforms required under Title VII of the Dodd-
Frank  Act  relating  to  the  over-the-counter  derivatives  market.  In  developing  this  proposal,  the  SEC  sought  to  harmonize  as 
closely  as  practicable  with  parallel  rules  of  the  CFTC  that  govern  SEFs  and  swap  execution  generally.  The  proposal  was 
published on SEC.gov and in the Federal Register with a public comment period of 60 days. If adopted, the proposal would 
implement the Exchange Act’s trade execution requirement for security-based swaps and address the cross-border application 
of that requirement; implement Section 765 of the Dodd-Frank Act to mitigate conflicts of interest at security-based SEFs and 
national securities exchanges that trade security-based swaps; and promote consistency between proposed Regulation SE and 
existing rules under the Exchange Act.

While  we  continue  to  have  a  compliance  framework  in  place  to  comply  with  both  existing  and  proposed  rules  and 
regulations, it is possible that the existing regulatory framework may be amended, which amendments could have a positive or 
negative impact on our business, financial condition, results of operations and prospects.

Certain  banks  and  other  institutions  may  continue  to  be  limited  in  their  conduct  of  proprietary  trading  and  may  be 
further limited from trading in certain derivatives. The new rules, including the proprietary trading restrictions for certain banks 

51

and  other  institutions,  could  materially  impact  transaction  volumes  and  liquidity  in  these  markets  and  our  business,  financial 
condition, results of operations and prospects could be materially adversely impacted as a result.

If we fail to continue to qualify as a SEF under any of these conditions, we may be unable to maintain our position as a 
provider  of  execution  and  brokerage  services  in  the  markets  for  many  of  the  OTC  products  for  which  we  have  traditionally 
acted  as  an  intermediary.  This  would  have  a  broad  impact  on  us  and  could  have  a  material  adverse  effect  on  our  business' 
financial condition, results operations, and prospects.

Our  commodities  derivatives  activities,  including  those  related  to  electricity,  natural  gas  and  environmental 
interests,  subject  us  to  extensive  regulation,  potential  catastrophic  events  and  other  risks  that  may  result  in  our 
incurring significant costs and liabilities.

We  engage  in  the  brokerage  of  commodities  derivatives,  including  those  involving  electricity  and  natural  gas,  and 
related products and indices. These activities subject us and our customers to extensive regulatory oversight, involving federal, 
state, and local and foreign commodities, energy, environmental, and other governmental laws and regulations and may result 
in our incurring significant costs and liabilities.

We or our clients may incur substantial costs in complying with current or future laws and regulations relating to our 
commodities-related activities, including trading of electricity, natural gas, and environmental interests. New regulation of OTC 
derivatives markets in the U.S. and similar legislation proposed or adopted abroad will impose significant new costs and new 
requirements on the commodities derivatives activities of us and our customers. Therefore, the overall reputation of us or our 
customers may be adversely affected by the current or future regulatory environment. Failure to comply with these laws and 
regulations may result in substantial civil and criminal penalties and fines for market participants.

The  commodities-related  activities  of  us  and  our  customers  are  also  subject  to  the  risk  of  unforeseen  catastrophic 
events, many of which are outside of our control, which could result in significant liabilities for us or our customers. We may 
not be able to obtain insurance to cover these risks, and the insurance that we have may be inadequate to cover our liabilities. 
The occurrence of any of such events may prevent us from performing under our agreements with customers, may impair our 
operations,  and  may  result  in  litigation,  regulatory  action,  negative  publicity  or  other  reputational  harm,  which  could  have  a 
material negative effect on our business, financial condition, results of operations and prospects.

Risks Related to Regulatory and Legal Compliance

The  financial  services  industry  in  which  we  operate  is  subject  to  significant  regulation.  We  are  subject  to 
regulatory capital requirements on our regulated business, and a significant operating loss or any extraordinary charge 
against capital could materially adversely affect our ability to expand or, depending upon the magnitude of the loss or 
charge, even to maintain the current level of our business.

Many  aspects  of  our  business,  like  those  of  other  financial  services  firms,  are  subject  to  significant  capital 
requirements. In the U.S., the SEC, FINRA, the CFTC, the NFA and various other regulatory bodies have stringent provisions 
with respect to capital applicable to the operation of brokerage firms, which vary depending upon the nature and extent of these 
entities’ activities. Four of our subsidiaries, BGCF, GFI Securities LLC, Fenics Execution LLC and Mint are registered with the 
SEC  and  subject  to  the  Uniform  Net  Capital  Requirements.  As  an  FCM,  Mint  is  also  subject  to  CFTC  capital  requirements. 
BGCF is also a member of the FICC, which imposes capital requirements on its members. These entities are subject to SEC, 
FINRA, CFTC and NFA net capital requirements. In addition, our SEFs, BGC Derivative Markets, GFI Swaps Exchange, FMX 
Futures Exchange, and CX Clearinghouse, L.P. are required to maintain financial resources to cover operating costs for at least 
one year, keeping at least enough cash or highly liquid securities to cover six months’ operating costs.

Our  international  operations  are  also  subject  to  capital  requirements  in  their  local  jurisdictions.  BGC  Brokers  L.P., 
BGC  European  Holdings,  L.P,  GFI  Brokers  Limited  and  GFI  Securities  Limited,  which  are  based  in  the  U.K.,  are  currently 
subject to capital requirements established by the FCA. The capital requirements of our French entities (and its EU branches) 
are predominantly set by ACPR and AMF. U.K. and EU authorities apply stringent provisions with respect to capital applicable 
to the operation of these brokerage firms, which vary depending upon the nature and extent of their activities. EU policymakers 
introduced a new capital regime applicable to EU Investment Firms with a phased implementation that began in June 2021. The 
U.K. has introduced a regime that, while applying different rules and methods, is largely similar in its objectives. This regime 
entered into force beginning in January 2022, with a similarly phased implementation.

In addition, the majority of our other foreign subsidiaries are subject to similar regulation by the relevant authorities in 
the  jurisdictions  in  which  they  do  business,  such  as  Australia,  Hong  Kong  and  Singapore.  These  regulations  often  include 
minimum capital requirements, which are subject to change. Further, we may become subject to capital requirements in other 
foreign jurisdictions in which we currently operate or in which we may enter.

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We expect to continue to maintain levels of capital in excess of regulatory minimums. Should we fail to maintain the 
required  capital,  we  may  be  required  to  reduce  or  suspend  our  brokerage  operations  during  the  period  that  we  are  not  in 
compliance  with  capital  requirements,  and  may  be  subject  to  suspension  or  revocation  of  registration  or  withdrawal  of 
authorization  or  other  disciplinary  action  from  domestic  and  international  regulators,  which  would  have  a  material  adverse 
effect on us. In addition, should we fail to maintain the capital required by clearing organizations of which we are a member, 
our ability to clear through those clearing organizations may be impaired, which may materially adversely affect our ability to 
process trades.

If the capital rules are changed or expanded, or if there is an unusually large charge against capital, our operations that 
require the intensive use of capital would be limited. Our ability to withdraw capital from our regulated subsidiaries is subject to 
restrictions,  which,  in  turn,  could  limit  our  ability  to  pay  our  indebtedness  and  other  expenses,  dividends  on  our  Class  A 
common stock, and distributions on our BGC Holdings limited partnership interests, and to repurchase shares of our Class A 
common stock or purchase BGC Holdings limited partnership interests or other equity interests in our subsidiaries, including 
from  Cantor,  our  executive  officers,  other  employees,  partners  and  others,  and  pursue  strategic  acquisitions  or  other  growth 
opportunities.  It  is  possible  that  capital  requirements  may  also  be  relaxed  as  a  result  of  future  changes  in  U.S.  regulation, 
although no assurance can be given that such changes will occur. We cannot predict our future capital needs or our ability to 
obtain additional financing. No assurance can be given that required capital levels will remain stable or that we will not incur 
substantial expenses in connection with maintaining current or increased capital levels or engaging in business restructurings or 
other activities in response to these requirements.

In addition, financial services firms such as ours are subject to numerous conflicts of interests or perceived conflicts, 
including  for  example  principal  trading  and  trading  to  make  markets.  We  have  adopted  various  policies,  controls,  and 
procedures  to  address  or  limit  actual  or  perceived  conflicts,  and  we  will  regularly  seek  to  review  and  update  our  policies, 
controls  and  procedures.  However,  these  policies,  controls  and  procedures  may  result  in  increased  costs  and  additional 
operational  personnel.  Failure  to  adhere  to  these  policies,  controls  and  procedures  may  result  in  regulatory  sanctions  or 
customer claims.

Our business, financial condition, results of operations and prospects could be materially adversely affected by 

new laws, rules, or regulations or by changes in existing law, rules or regulations or the application thereof.

The financial services industry, in general, is heavily regulated. Proposals for additional legislation further regulating 
the financial services industry are periodically introduced in the U.S., the U.K., the EU, and other geographic areas. Moreover, 
the agencies regulating the financial services industry also periodically adopt changes to their rules and regulations, particularly 
as these agencies have increased the focus and intensity of their regulation of the financial services industry.

Changes in legislation and in the rules and regulations promulgated by the SEC, FINRA, the CFTC, the NFA, the U.S. 
Treasury,  the  FCA,  the  European  Commission,  ESMA  and  other  domestic  and  international  regulators  and  self-regulatory 
organizations, as well as changes in the interpretation or enforcement of existing laws and rules, often directly affect the method 
of operation and profitability of brokerage and could result in restrictions in the way we conduct our business. For example, the 
U.S.  Congress,  the  U.S.  Treasury,  the  Board  of  Governors  of  the  Federal  Reserve  System,  the  SEC  and  the  CFTC  are 
continuing  to  review  the  nature  and  scope  of  their  regulation  and  oversight  of  the  government  securities  markets  and  U.S. 
securities  and  derivative  markets.  Furthermore,  in  Europe,  MiFID  II  was  implemented  in  January  2018.  MiFID  II  requires  a 
significant part of the market in these instruments to trade on trading venues subject to pre- and post-trade transparency regimes 
and non-discriminatory fee structures and access. In addition, it has had a particularly significant impact in several key areas, 
including  corporate  governance,  transaction  reporting,  technology  synchronization,  best  execution  and  investor  protection. 
MiFID  II  also  introduced  a  new  regulated  execution  venue  category  to  accompany  the  existing  Multilateral  Trading  Facility 
regime. The new venue category is known as an OTF, and it captures much of the voice and hybrid trading in EU. Certain of 
our existing EU derivatives and fixed income execution business now take place on OTFs, and we currently operate one OTF 
for each of the U.K.-regulated entities, one in France at Aurel BGC and one MTF under GFI Securities Limited. In 2019, a new 
European Commission took office which may over the course of its five-year mandate introduce new legislative proposals for 
the financial services sector. This will include various legislative reviews of MIFID, which have started in 2020.

In  the  U.S.,  the  SEC  has  proposed  rules  to  expand  Regulation  ATS  to  cover  ATS  trading  government  securities.  In 

addition, the proposed rules extend Regulation SCI to ATSs trading government securities.

Further, the authorities of non-U.S. countries in which we have offices or do business may from time-to-time institute 
changes to tax law that, if applicable to us, could have a material adverse effect on our business, financial condition, results of 
operations and prospects. Similarly, the U.S. has proposed a series of changes to U.S. tax law, some of which could apply to us. 
It is not possible to predict if any of these new provisions will be enacted or, if they are, what form they may take. It is possible 
that one or more of such provisions could negatively impact our costs and our effective tax rate, which would affect our after-
tax  earnings.  If  any  of  such  changes  to  tax  law  were  implemented  and/or  deemed  to  apply  to  us,  they  could  have  a  material 

53

adverse  effect  on  our  business,  financial  condition,  results  of  operations  and  prospects,  including  on  our  ability  to  attract, 
compensate and retain brokers, salespeople, managers, technology professionals and other front-office personnel.

While  we  continue  to  have  a  compliance  framework  in  place  to  comply  with  both  existing  and  proposed  rules  and 
regulations, it is possible that the existing regulatory framework may be amended, which amendments could have a positive or 
negative impact on our business, financial condition, results of operations and prospects.

We believe that uncertainty and potential delays around the final form that such new laws and regulations might take 
may  negatively  impact  trading  volumes  in  certain  markets  in  which  we  transact.  Increased  capital  requirements  may  also 
diminish transaction velocity. We believe that it remains premature to know conclusively the specific aspects of the U.S., U.K. 
and EU proposals which may directly impact our business as some proposals have not yet been finalized and others which have 
been proposed remain subject to further debate. Additionally, unintended consequences of the laws, rules and regulations may 
adversely affect us in ways yet to be determined. We are unable to predict how any of these new laws, rules, regulations and 
proposals  will  be  implemented  or  in  what  form,  or  whether  any  additional  or  similar  changes  to  laws,  rules  or  regulations, 
including the interpretation or implementation thereof, will occur in the future. Any such action could affect us in substantial 
and unpredictable ways and could have a material adverse effect on our businesses, financial condition, results of operations 
and prospects.

In  addition,  we  are  subject  to  tax  risks  inherent  in  operating  a  global  business  in  various  jurisdictions,  including 

increased taxes and levies and future changes in income tax regulations.

Extensive  regulation  of  our  business  restricts  and  limits  our  operations  and  activities  and  results  in  ongoing 
exposure to potential significant costs and penalties, including fines, sanctions, enhanced oversight, increased financial 
and capital requirements, and additional restrictions or limitations on our ability to conduct or grow our business.

The  financial  services  industry,  including  our  business,  is  subject  to  extensive  regulation,  which  is  very  costly.  The 
requirements imposed by regulators are designed to ensure the integrity of the financial markets and to protect customers and 
other third parties who deal with us and are not designed to protect the holders of our stock, notes or other securities. These 
regulations will often serve to restrict or limit our operations and activities, including through capital, customer protection and 
market conduct requirements.

Our business is subject to regulation by governmental and self-regulatory organizations in the jurisdictions in which 
we operate around the world. Many of these regulators, including U.S. and non-U.S. government agencies and self-regulatory 
organizations, as well as state securities commissions in the U.S., are empowered to bring enforcement actions and to conduct 
administrative  proceedings  and  examinations,  inspections,  and  investigations,  which  may  result  in  costs,  penalties,  fines, 
enhanced  oversight,  increased  financial  and  capital  requirements,  restrictions  or  limitations,  and  censure,  suspension,  or 
expulsion. Self-regulatory organizations such as FINRA and the NFA, along with statutory bodies such as the SEC, the CFTC, 
and  the  FCA,  and  other  international  regulators,  require  strict  compliance  with  their  rules  and  regulations.  In  addition,  as  a 
result  of  regulatory  actions,  our  registration  statements  under  the  Securities  Act  will  be  subject  to  SEC  review  prior  to 
effectiveness,  which  may  lengthen  the  time  required  for  us  to  raise  capital,  reducing  our  access  to  the  capital  markets  or 
increasing our cost of capital.

Firms  in  the  financial  services  industry,  including  us,  have  experienced  increased  scrutiny  in  recent  years,  and 
penalties,  fines  and  other  sanctions  sought  by  regulatory  authorities,  including  the  SEC,  the  CFTC,  FINRA,  the  NFA,  state 
securities commissions and state attorneys general in the U.S., and the FCA in the U.K. and other international regulators, have 
increased accordingly. This trend toward a heightened regulatory and enforcement environment can be expected to continue for 
the  foreseeable  future,  and  this  environment  may  create  uncertainty.  From  time  to  time,  we  have  been  and  are  subject  to 
periodic  examinations,  inspections,  and  investigations,  including  periodic  risk  assessment  and  related  reviews  of  our  U.K. 
group. As a result of such reviews, we may be subject to increased monitoring and be required to include or enhance certain 
regulatory structures and frameworks in our operating procedures, systems, and controls.

Increasingly,  the  FCA  has  developed  a  practice  of  requiring  senior  officers  of  regulated  firms  to  provide  individual 
attestations or undertakings as to the status of the firm’s control environment, compliance with specific rules and regulations, or 
the  completion  of  required  tasks.  Officers  of  BGC  Brokers  L.P.  and  GFI  Brokers  Limited  have  given  such  attestations  or 
undertakings in the past and may do so again in the future. Similarly, the FCA can seek a voluntary requirement notice, which 
is  a  voluntary  undertaking  on  behalf  of  a  firm  that  is  made  publicly  available  on  the  FCA’s  website.  The  SMCR  came  into 
effect in the U.K. on December 9, 2019. Accountability requirements now fall on senior managers, and a wider population of 
U.K. staff are subject to certification requirements. SMCR has increased the cost of compliance and will potentially increase 
financial  penalties  for  non-compliance.  These  activities  have  resulted,  and  may  in  the  future  result,  in  significant  costs  and 
remediation expenses, and possible disciplinary actions by the SEC, the CFTC, the FCA, self-regulatory organizations and state 
securities administrators and have impacted, and may impact in the future, our acquisitions of regulated businesses or entry into 
new business lines.

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The financial services industry in general faces potential regulatory, litigation and/or criminal risks that may 
result in damages or fines or other penalties as well as costs, and we may face damage to our professional reputation and 
legal liability if our products and services are not regarded as satisfactory, our employees do not adhere to all applicable 
legal and professional standards, or for other reasons, all of which could have a material adverse effect on our business, 
financial condition, results of operations and prospects.

Many aspects of our current business involve substantial risks of liability. The expansion of our businesses, including 

into new areas, imposes additional risks of liability.

In  the  normal  course  of  business,  we  have  been  a  party  to  investigations,  administrative  proceedings,  lawsuits, 
arbitrations, and other actions involving primarily claims for damages. In certain circumstances, we could also face potential 
criminal  investigations,  enforcement  actions  or  liability,  including  fines  or  other  penalties.  Examinations,  inspections, 
regulatory inquiries and subpoenas or other requests for information or testimony may cause us to incur significant expenses, 
including  fees  for  legal  representation  and  other  professional  advisors  and  costs  associated  with  document  production  and 
remediation efforts. Such regulatory, legal, or other actions may also be directed at certain executives or employees who may be 
critical to our business or to particular brokerage desks. The risks associated with such matters often may be difficult to assess 
or quantify, and their existence and magnitude often remain unknown for substantial periods of time.

A settlement of, or judgment related to, any such matters could result in regulatory, civil or criminal liability, fines, 
penalties,  restrictions  or  limitations  on  our  operations  and  activities  and  other  sanctions  and  could  otherwise  have  a  material 
adverse  effect  on  our  business,  results  of  operations,  financial  condition  and  prospects.  Any  such  action  could  also  cause  us 
significant reputational harm, which, in turn, could seriously harm us. In addition, regardless of the outcome of such matters, 
we may incur significant legal and other costs, including substantial management time, dealing with such matters, even if we 
are not a party to the litigation or a target of the inquiry. For example, in September 2020, the SEC announced a settlement with 
BGC  regarding  alleged  negligent  disclosure  violations  related  to  one  of  BGC's  non-GAAP  financial  measures  for  periods 
beginning with the first quarter of 2015 through the first quarter of 2016. All of the relevant disclosures related to those periods 
and pre-dated the SEC staff’s May 2016 detailed compliance and disclosure guidance with respect to non-GAAP presentations. 
BGC revised its non-GAAP presentation beginning with the second quarter of 2016 as a result of the SEC’s guidance, and the 
SEC  has  made  no  allegations  with  regard  to  any  periods  following  the  first  quarter  of  2016.  In  connection  with  the  SEC 
settlement, BGC was ordered to cease and desist from any future violations of Sections 17(a)(2) and 17(a)(3) of the Securities 
Act, Section 13(a) of the Exchange Act and Rule 13a-11 thereunder, and Rule 100(b) of Regulation G, and agreed to pay a civil 
penalty  of  $1.4  million  without  admitting  or  denying  the  SEC’s  allegations.  During  the  fourth  quarter  of  2020,  management 
identified the theft of UK tax payment related funds from the Company. The theft, which occurred over several years ending 
September  2020,  was  perpetrated  by  two  individuals  associated  with  the  Company,  and  did  not  involve  the  operations  or 
business  of  the  Company.  Litigation  was  commenced  against  the  two  individuals  seeking  recovery  of  stolen  amounts.  One 
individual has admitted to all claims and we are now recovering assets pursuant to a court endorsed consent order. Litigation 
continues against the second individual. The cumulative impact to the Company’s “Consolidated net income (loss)” as a result 
of the theft was determined to be $35.2 million. The Company expects to recover most or substantially all of the stolen funds 
through a combination of insurance and return of assets through litigation.

We depend to a large extent on our relationships with our customers and our reputation for integrity and high-caliber 
professional  services  to  attract  and  retain  customers.  We  are  subject  to  the  risk  of  failure  of  our  employees  to  comply  with 
applicable laws, rules and regulations or to be adequately supervised by their managers, and to the extent that such individuals 
do not meet these requirements, we may be subject to the risk of fines or other penalties as well as reputational risk. As a result, 
if  our  customers  are  not  satisfied  with  our  products  or  services,  or  our  employees  do  not  adhere  to  all  applicable  legal  and 
professional  standards,  such  matters  may  be  more  damaging  to  our  business  than  to  other  types  of  businesses.  Significant 
regulatory  action  or  substantial  legal  liability  against  us  could  have  a  material  adverse  effect  on  our  business,  financial 
condition, results of operations and prospects, or cause significant reputational damage to us, which could seriously harm us.

Risks Related to Competition

Because  competition  for  the  services  of  brokers,  salespeople,  managers,  technology  professionals  and  other 
front-office  personnel  in  the  financial  services  industry  is  intense,  it  could  affect  our  ability  to  attract  and  retain  a 
sufficient  number  of  highly  skilled  brokers  or  other  professional  services  personnel,  in  turn  adversely  impacting  our 
revenues, resulting in a material adverse effect on our business, financial condition, results of operations and prospects.

Our ability to provide high-quality brokerage and other professional services and maintain long-term relationships with 
our customers depends, in large part, upon our brokers, salespeople, managers, technology professionals and other front-office 
personnel. As a result, we must attract and retain highly qualified personnel.

Competition  for  talent  is  intense,  especially  for  brokers  with  experience  in  the  specialized  businesses  in  which  we 
participate or we may seek to enter. If we are unable to hire or retain highly qualified professionals, including retaining those 

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employed by businesses we acquire in the future, we may not be able to enter new brokerage markets or develop new products 
or services. If we lose one or more of our brokers in a particular market in which we participate, our revenues may decrease, 
and we may lose market share.

In addition, recruitment and retention of qualified professionals could result in substantial additional costs, including 

costs and management time associated with litigation, arbitration or other claims related to employee hires and/or departures.

If we fail to attract new personnel, or fail to retain and motivate our current personnel, or if we incur increased costs or 
restrictions associated with attracting and retaining personnel (such as lawsuits, arbitrations, sign-on or guaranteed bonuses or 
forgivable loans), our business, financial condition, results of operations and prospects could be materially adversely affected.

We face strong competition from brokerages, exchanges, and other financial services firms, many of which have 
greater  market  presence,  marketing  capabilities  and  financial,  technological  and  personnel  resources  than  we  have, 
which  could  lead  to  pricing  pressures  that  could  adversely  impact  our  revenues  and  as  a  result  could  materially 
adversely affect our business, financial condition, results of operations and prospects.

The financial services industry is intensely competitive and is expected to remain so. We primarily compete with two 
major,  diversified  inter-dealer  brokers  and  financial  intermediaries:  TP  ICAP  and  Tradition.  TP  ICAP  and  Tradition  are 
currently  publicly  traded  companies.  Other  inter-dealer  broker  and  financial  intermediary  competitors  include  a  number  of 
smaller, privately held firms that tend to specialize in specific products and services or geographic areas.

We  also  compete  with  companies  that  provide  alternative  products  and  services,  such  as  contracts  traded  on  futures 
exchanges,  and  trading  processes,  such  as  the  direct  dealer-to-dealer  market  for  government  securities  and  stock  exchange 
markets for corporate equities, debt and other securities. We increasingly compete, directly or indirectly, with exchanges for the 
execution of trades in certain products, mainly in derivatives such as futures, swaps, options, and options on futures, such the 
CME Group. Certain exchanges have made and will likely continue to make attempts to move certain OTC-traded products to 
exchange-based execution, or to create listed derivatives products that mimic the qualities of similar OTC-traded products. We 
also  compete  with  consortia,  which  are  created  or  funded  from  time  to  time  by  banks,  broker-dealers  and  other  companies 
involved  in  financial  services  to  compete  in  various  markets  with  exchanges  and  inter-dealer  brokers.  We  may  compete  in 
OTC-traded  products  with  platforms,  such  as  those  owned  by  MarketAxess  Holdings  Inc.  and  Tradeweb  Markets,  in  fixed 
income products or various OTC FX platforms owned by exchanges such as CBOE and Deutsche Börse. In addition, financial 
data and information firms such as Refinitiv and Bloomberg L.P. operate trading platforms for both OTC and listed products 
and may attempt to compete with us for trade execution in the future.

Some  of  our  competitors  have  greater  market  presence,  marketing  capabilities  and  financial,  technological  and 

personnel resources than we have and, as a result, our competitors may be able to:

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develop and expand their network infrastructures and product and service offerings more efficiently or more
quickly than we can;

adapt more swiftly to new or emerging technologies and changes in customer requirements;

identify and consummate acquisitions and other opportunities more effectively than we can;

hire our brokers, salespeople, managers, technology professionals and other front-office personnel;

devote greater resources to the marketing and sale of their products and services;

more  effectively  leverage  existing  relationships  with  customers  and  strategic  partners  or  exploit  more
recognized brand names to market and sell their products and services;

provide a lower cost structure and lower commissions and fees;

provide access to trading in products or a range of products that at any particular time we do not offer; and

develop services that are preferred by our customers.

In addition, new competitors may emerge, and our product and service lines may be threatened by new technologies or
market trends that reduce the value of our existing product and service lines or we may enter new businesses, including crypto-
currency and similar opportunities for which there are high barriers to entry or for which we may be regulated. If we are not 
able  to  compete  successfully  in  the  future,  our  revenues  could  be  adversely  impacted,  and  as  a  result  our  business,  financial 
condition, results of operations and prospects could be materially adversely affected.

Competition  for  financial  brokerage  transactions  also  has  resulted  in  substantial  commission  discounting  by  brokers 
that compete with us for business. Further discounting could adversely impact our revenues and margins and as a result could 
materially adversely affect our business, financial condition, results of operations and prospects.

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Our  operations  also  include  the  sale  of  pricing  and  transactional  data  and  information  produced  by  our  brokerage 
operations to securities information processors and/or vendors. There is a high degree of competition in pricing and transaction 
reporting products and services, and such businesses may become more competitive in the future. Competitors and customers of 
our financial brokerage business have together and individually offered market data and information products and services in 
competition with those offered and expected to be offered by us.

Risks Related to Our International Operations

We are generally subject to various risks inherent in doing business in the international financial markets, in 
addition to those unique to the regulated brokerage industry, and any failure to identify and manage those risks could 
materially adversely affect our business, financial condition, results of operations and prospects.

We  currently  provide  products  and  services  to  customers  in  many  foreign  countries,  and  we  may  seek  to  further 
expand  our  operations  into  additional  jurisdictions.  On  a  consolidated  basis,  revenues  from  foreign  countries  were 
approximately $1.3 billion, or approximately 70% of total revenues for the year ended December 31, 2022. In many countries, 
the  laws  and  rules  and  regulations  applicable  to  the  financial  services  industry  are  uncertain  and  evolving,  and  it  may  be 
difficult  for  us  to  determine  the  exact  requirements  of  local  regulations  in  every  jurisdiction.  Our  inability  to  remain  in 
compliance with local laws and rules and regulations in a particular foreign jurisdiction could have a significant and negative 
effect not only on our business in that market but also on our reputation generally. If we are unable to manage any of these risks 
effectively, our business, financial condition, results of operations and prospects could be adversely affected.

There are also certain additional political, economic, legal, operational, and other risks inherent in doing business in 

international financial markets, particularly in the regulated financial services industry. These risks include:

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less developed automation in exchanges, depositories and national clearing systems;

additional  or  unexpected  changes  in  regulatory  requirements,  capital  requirements,  tariffs  and  other  trade
barriers;

the  impact  of  the  laws,  rules  and  regulations  of  foreign  governmental  and  regulatory  authorities  of  each
country in which we conduct business, including initiatives such as Brexit;

possible nationalization, expropriation and regulatory, political and price controls;

difficulties in staffing and managing international operations;

capital controls, exchange controls and other restrictive governmental actions;

failure to develop effective compliance and reporting systems, which could result in regulatory penalties in
the applicable jurisdiction;

fluctuations in currency exchange rates;

reduced protections for intellectual property rights;

adverse  labor  and  employment  laws,  including  those  related  to  compensation,  tax,  health  insurance  and
benefits, and social security;

the outbreak of hostilities, mass demonstrations, pandemics, or other global events; and

potentially  adverse  tax  consequences  arising  from  compliance  with  foreign  laws,  rules,  and  regulations  to
which our international businesses are subject and the repatriation of overseas earnings.

Credit Risk

Credit ratings downgrades or defaults by us, Cantor or another large financial institution could adversely affect 

us or financial markets generally.

The commercial soundness of many financial institutions may be closely interrelated as a result of interconnectedness 
arising from credit, trading, clearing or other relationships between the institutions. A default by one of our customers could 
lead to liquidity concerns in our business and, to the extent that Cantor or another entity that clears for us has difficulty meeting 
capital requirements or otherwise meeting its obligations, we may need to provide our own liquidity.

As a result, concerns about, or a default or threatened default by, one institution could lead to significant market-wide 
liquidity problems, losses, or defaults by other institutions. This is sometimes referred to as “systemic risk” and may adversely 
affect financial intermediaries, such as clearing agencies, clearing houses, banks, securities firms and exchanges, with which we 
transact on a regular basis, and therefore could adversely affect us. Similarly, our vendors, including insurance companies and 

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other providers, are subject to normal business risks as well as risks related to changes in U.S. and international economic and 
market conditions. Failure of any of these vendor institutions could also materially, adversely affect us.

Our  credit  ratings  and  associated  outlooks  are  critical  to  our  reputation  and  operational  and  financial  success.  Our 
credit  ratings  and  associated  outlooks  are  influenced  by  a  number  of  factors,  including:  operating  environment,  regulatory 
environment,  earnings  and  profitability  trends  the  rating  agencies’  view  of  our  funding  and  liquidity  management  practices, 
balance sheet size/composition and resulting leverage, cash flow coverage of interest, composition and size of the capital base, 
available  liquidity,  outstanding  borrowing  levels,  our  competitive  position  in  the  industry,  our  relationships  in  the  industry, 
including with Cantor, acquisitions or dispositions of assets and other matters. Our credit ratings and/or the associated rating 
outlooks can be revised upward or downward at any time by a rating agency if such rating agency decides the circumstances of 
BGC or related companies warrant such a change. Any negative change or a downgrade in credit ratings and/or the associated 
rating outlooks could adversely affect the availability of debt financing on acceptable terms, as well as the cost and other terms 
upon  which  any  such  financing  can  be  obtained.  In  addition,  credit  ratings  and  associated  outlooks  may  be  important  to 
customers or counterparties in certain markets and in certain transactions. Additional collateral may be required in the event of 
a negative change in credit ratings or rating outlooks.

Our activities are subject to credit and performance risks, which could result in us incurring significant losses 

that could materially adversely affect our business, financial condition, results of operations and prospects.

Our  activities  are  subject  to  credit  and  performance  risks.  For  example,  our  customers  and  counterparties  may  not 
deliver securities to one of our operating subsidiaries which has sold those securities to another customer. If the securities due 
to  be  delivered  have  increased  in  value,  there  is  a  risk  that  we  may  have  to  expend  our  own  funds  in  connection  with  the 
purchase  of  other  securities  to  consummate  the  transaction.  While  we  will  take  steps  to  ensure  that  our  customers  and 
counterparties have high credit standings and that financing transactions are adequately collateralized, the large dollar amounts 
that  may  be  involved  in  our  broker-dealer  and  financing  transactions  could  subject  us  to  significant  losses  if,  as  a  result  of 
customer  or  counterparty  failures  to  meet  commitments,  we  were  to  incur  significant  costs  in  liquidating  or  covering  our 
positions in the open market.

We have adopted policies and procedures to identify, monitor and manage credit and market risks, in both agency and 
principal  transactions,  leveraging  risk  reporting  and  control  procedures  and  by  monitoring  credit  standards  applicable  to  our 
customers  and  counterparties.  These  policies  and  procedures,  however,  may  not  be  fully  effective,  particularly  against  fraud, 
unauthorized  trading,  and  similar  incidents.  Some  of  these  risk  management  methods  depend  upon  the  evaluation  of 
information regarding markets, customers, counterparties, or other matters that are publicly available or otherwise accessible by 
us.  That  information  may  not,  in  all  cases,  be  accurate,  complete,  up-to-date,  or  properly  evaluated.  If  our  policies  and 
procedures are not fully effective or we are not always successful in monitoring or evaluating the risks to which we are, or may 
be,  exposed,  our  business,  financial  condition,  results  of  operations  and  prospects  could  be  materially  adversely  affected.  In 
addition, our insurance policies do not provide coverage for these risks.

Transactions executed on a matched principal basis where the instrument has the same or similar characteristics to the 
counterparty may expose us to correlation risk. In this case, the counterparty’s inability to meet its obligations will also result in 
the  value  of  the  instrument  declining.  For  example,  if  we  were  to  enter  into  a  transaction  to  sell  to  a  customer  a  bond  or 
structured  note  where  the  issuer  or  credit  support  provider  was  such  customer’s  affiliate,  the  value  of  the  instrument  would 
decline in value in tandem with the default. This correlation has the potential effect of magnifying the credit loss.

We  are  subject  to  financing  risk  because,  if  a  transaction  does  not  settle  on  a  timely  basis,  the  resulting  unmatched 
position  may  need  to  be  financed,  either  directly  by  us  or  through  one  of  the  clearing  organizations,  at  our  expense.  These 
charges  may  be  recoverable  from  the  failing  counterparty,  but  sometimes  they  are  not.  In  addition,  in  instances  where  the 
unmatched  position  or  failure  to  deliver  is  prolonged  or  widespread  due  to  rapid  or  widespread  declines  in  liquidity  for  an 
instrument, there may also be regulatory capital charges required to be taken by us, which, depending on their size and duration, 
could  limit  our  business  flexibility  or  even  force  the  curtailment  of  those  portions  of  our  business  requiring  higher  levels  of 
capital. Credit or settlement losses of this nature could materially adversely affect our business, financial condition, results of 
operations and prospects.

Disruptions  in  the  financial  markets  have  also  led  to  the  exposure  of  several  cases  of  financial  fraud.  If  we  were  to 
have trading activity on an agency or principal basis with an entity engaged in defrauding investors or counterparties, we could 
bear the risk that the counterparty would not have the financial resources to meet their obligations, resulting in a credit loss. 
Similarly, we may engage in financial transactions with third parties that have been victims of financial fraud and, therefore, 
may not have the financial resources to meet their obligations to us.

In agency transactions, we charge a commission for connecting buyers and sellers and assisting in the negotiation of 
the price and other material terms of the transaction. After all material terms of a transaction are agreed upon, we identify the 
buyer and seller to each other and leave them to settle the trade directly. We are exposed to credit risk for commissions, as we 

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bill  customers  for  our  agency  brokerage  services.  Our  customers  may  default  on  their  obligations  to  us  due  to  disputes, 
bankruptcy,  lack  of  liquidity,  operational  failure,  or  other  reasons.  Any  losses  arising  from  such  defaults  could  materially 
adversely affect our business, financial condition, results of operations and prospects.

In emerging market countries, we primarily conduct our business on an agency and matched principal basis, 
where the risk of counterparty default, inconvertibility events and sovereign default is greater than in more developed 
countries.

We  enter  transactions  in  cash  and  derivative  instruments  primarily  on  an  agency  and  matched  principal  basis  with 
counterparties  domiciled  in  countries  in  Latin  America,  Eastern  Europe  and  Asia.  Transactions  with  these  counterparties  are 
generally  in  instruments  or  contracts  of  sovereign  or  corporate  issuers  located  in  the  same  country  as  the  counterparty.  This 
exposes us to a higher degree of sovereign or convertibility risk than in more developed countries. In addition, these risks may 
entail correlated risks. A correlated risk arises when the counterparty’s inability to meet its obligations also corresponds to a 
decline in the value of the instrument traded. In the case of a sovereign convertibility event or outright default, the counterparty 
to  the  trade  may  be  unable  to  pay  or  transfer  payment  of  an  instrument  purchased  out  of  the  country  when  the  value  of  the 
instrument has declined due to the default or convertibility event. The global financial crisis of recent years has heightened the 
risk  of  sovereign  or  convertibility  events  in  emerging  markets  similar  to  the  events  that  occurred  in  previous  financial 
downturns.  Our  risk  management  function  monitors  the  creditworthiness  of  emerging  countries  and  counterparties  on  an 
ongoing basis and, when the risk of inconvertibility or sovereign default is deemed to be too great, correlated transactions or all 
transactions  may  be  restricted  or  suspended.  However,  there  can  be  no  assurance  that  these  procedures  will  be  effective  in 
controlling these risks.

Concentration and Market Risk

The rates business is our largest product category, and we could be significantly affected by any downturn in 

the rates product market.

We  offer  our  brokerage  services  in  five  broad  product  categories:  rates,  credit,  FX,  energy  and  commodities,  and 
equities.  Our  brokerage  revenues  are  strongest  in  our  rates  products,  which  accounted  for  approximately  30.6%  of  our  total 
brokerage  revenues  on  a  consolidated  basis  for  the  year  ended  December  31,  2022.  While  we  focus  on  expanding  and  have 
successfully diversified our product offerings, we may currently be exposed to any adverse change or condition affecting the 
rates  product  market.  Accordingly,  the  concentration  of  our  brokerage  business  on  rates  products  subjects  our  results  to  a 
greater market risk than if we had more diversified product offerings.

Due to our current customer concentration, a loss of one or more of our significant customers could materially 

harm our business, financial condition, results of operations and prospects.

For  the  year  ended  December  31,  2022,  on  a  consolidated  basis,  our  top  ten  customers,  collectively,  accounted  for 
approximately 31.0% of our total revenues. We have limited long-term contracts with certain of these customers. If we were to 
lose one or more of these significant customers for any reason, including as a result of further consolidation and concentration 
in the financial services industry, and not be compensated for such loss by doing additional business with other customers or by 
adding new customers, our revenues would decline significantly and our business, financial condition, results of operations and 
prospects would materially suffer.

Our  revenues  and  profitability  could  be  reduced  or  otherwise  materially  adversely  affected  by  pricing  plans 

relating to commissions and fees on our trading platform.

We  negotiate  from  time  to  time  with  certain  customers  (including  many  of  our  largest  customers)  to  enter  into 
customized volume discount pricing plans. While the pricing plans are designed to encourage customers to be more active on 
our Fully Electronic trade execution platform, they reduce the amount of commissions and fees payable to us by certain of our 
most active customers for certain products, which could reduce our revenues and constrain our profitability. From time to time, 
these  pricing  plans  come  up  for  renewal.  Failure  of  a  number  of  our  larger  customers  to  enter  into  renewed  agreements,  or 
agreements  on  terms  as  favorable  as  existing  agreements,  could  have  a  material  adverse  effect  on  volumes  on  our  Fully 
Electronic trade execution platform, the commissions payable to us, our revenues and our profitability.

Reduced  spreads  in  pricing,  levels  of  trading  activity  and  trading  through  market  makers  and/or  specialists 

could materially adversely affect our business, financial condition, results of operations and prospects.

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Computer-generated  buy/sell  programs  and  other  technological  advances  and  regulatory  changes  in  the  marketplace 
may  continue  to  tighten  securities  spreads.  In  addition,  new  and  enhanced  alternative  trading  systems,  such  as  electronic 
communications networks, have emerged as alternatives for individual and institutional investors, as well as brokerage firms. 
As  such  systems  do  not  direct  trades  through  market  makers,  their  use  could  result  in  reduced  revenues  for  us  or  for  our 
customers.  In  addition,  reduced  trading  levels  could  lead  to  lower  revenues  which  could  materially  adversely  affect  our 
businesses, financial condition, results of operations and prospects.

We  have  market  risk  exposure  from  unmatched  principal  transactions  entered  into  by  some  of  our  desks,  as 
well as holdings of marketable equity securities, which could result in losses and have a material adverse effect on our 
business,  financial  condition,  results  of  operations,  and  prospects  for  any  particular  reporting  period.  In  addition, 
financial fraud or unauthorized trading activity could also adversely impact our business, financial condition, results of 
operations and prospects.

On a limited basis, our desks enter into unmatched principal transactions in the ordinary course of business to facilitate 
transactions, add liquidity, improve customer satisfaction, increase revenue opportunities and attract additional order flow or, in 
certain instances, as the result of an error. As a result, we have market risk exposure on these unmatched principal transactions.

Market risk refers to the risk that a change in the level of one or more market prices, rates, indices or other factors will 
result in losses for a specified position. We may allow certain of our desks to enter into unmatched principal transactions in the 
ordinary  course  of  business  and  hold  long  and  short  inventory  positions.  These  transactions  are  primarily  for  the  purpose  of 
managing proprietary positions, facilitating customer execution needs, adding liquidity to a market or attracting additional order 
flow. As a result, we may have market risk exposure on these transactions. Our exposure varies based on the size of the overall 
position, the terms and liquidity of the instruments brokered and the amount of time the position is held before we dispose of 
the position. Although  we  have limited ability  to track our exposure to market risk and unmatched positions on an intra-day 
basis, we attempt to mitigate market risk on these positions by strict risk limits, extremely limited holding periods and active 
risk management, including hedging our exposure. These positions are intended to be held short term, and generally to facilitate 
customer transactions. However, due to a number of factors, including the nature of the position and access to the market on 
which it trades, we may not be able to unwind the position and we may be forced to hold the position for a longer period than 
anticipated. All positions held longer than intra-day are marked to market.

Certain  categories  of  trades  settle  for  clearing  purposes  with  CF&Co,  one  of  our  affiliates.  CF&Co  is  a  member  of 
FINRA and the FICC, a subsidiary of the Depository Trust & Clearing Corporation. In addition, certain affiliated entities are 
subject to regulation by the CFTC, including CF&Co and BGC Financial. In certain products we, CF&Co, BGC Financial and 
other affiliates act in a matched principal or principal capacity in markets by posting and/or acting upon quotes for our account. 
Such  activity  is  intended,  among  other  things,  to  assist  us,  CF&Co,  and  other  affiliates  in  managing  proprietary  positions 
(including, but not limited to, those established as a result of combination trades and errors), facilitating transactions, framing 
markets, adding liquidity, increasing commissions and attracting order flow.

From  a  risk  management  perspective,  we  monitor  risk  daily,  on  an  end-of-day  basis,  and  desk  managers  generally 
monitor  such  exposure  on  a  continuous  basis.  Any  unmatched  positions  are  intended  to  be  disposed  of  in  the  short  term. 
However, due to a number of factors, including the nature of the position and access to the markets on which we trade, we may 
not be able to match the position or effectively hedge its exposure and often may be forced to hold a position overnight that has 
not  been  hedged.  To  the  extent  these  unmatched  positions  are  not  disposed  of  intra-day,  we  mark  these  positions  to  market. 
Adverse movements in the market values of assets or other reference benchmarks underlying these positions or a downturn or 
disruption in the markets for these positions could result in a loss. In the event of any unauthorized trading activity or financial 
fraud that is not detected by management, it is possible that these unmatched positions could be outstanding for a long period. 
At  the  time  of  any  sales  and  settlements  of  these  positions,  the  price  we  ultimately  realize  will  depend  on  the  demand  and 
liquidity  in  the  market  at  that  time  and  may  be  materially  lower  than  their  current  fair  values.  In  addition,  our  estimates  or 
determinations of the values of our various positions, assets or business are subject to the accuracy of our assumptions and the 
valuation  models  or  multiples  used.  Any  principal  losses  and  gains  resulting  from  these  positions  could  on  occasion  have 
disproportionate effects, negative or positive, on our business, financial condition, results of operations and prospects for any 
particular reporting period.

In addition, in recent years we have had considerable holdings of marketable securities received by us as consideration 
for the sale of certain businesses. We may seek to manage the market risk exposure inherent in such holdings by minimizing the 
effect of price changes on a portion of such holdings, including through the use of derivative contracts. There can, however, be 
no assurance that our hedging activities will be adequate to protect us against price risks associated with these holdings, or that 
the  costs  of  such  hedging  activities  will  not  be  significant.  Further,  any  such  hedging  activities  and  other  risk  management 
techniques  may  not  be  fully  effective  in  mitigating  our  risk  exposure  in  all  market  environments  or  against  all  types  of  risk, 
including  unpredicted  price  movements,  counterparty  defaults  or  other  risks  that  are  unidentified  or  unanticipated.  Any  such 
events could have a material adverse effect on our business, financial condition, results of operations and prospects.

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We may have equity investments or profit sharing interests in entities whose primary business is proprietary 
trading.  These  investments  could  expose  us  to  losses  that  could  adversely  affect  our  net  income  and  the  value  of  our 
assets.

We may have equity investments or profit sharing interests in entities whose primary business is proprietary trading. 
The accounting treatment applied for these investments varies depending on a number of factors, including, but not limited to, 
our percentage ownership or profit share and whether we have any influence or control over the relevant entity. Under certain 
accounting  standards,  any  losses  experienced  by  these  entities  on  their  investment  activities  could  adversely  impact  our  net 
income and the value of our assets. In addition, if these entities were to fail and cease operations, we could lose the entire value 
of our investment and the stream of any shared profits from trading.

Other General Risks

Our  operations  are  global  and  exchange  rate  fluctuations  and  international  market  events  could  materially 

adversely impact our business, financial condition, results of operations and prospects.

Because our operations are global, we are exposed to risks associated with changes in FX rates. Changes in foreign 
currency  rates  create  volatility  in  the  U.S.  dollar  equivalent  of  revenues  and  expenses  which  may  result  in  higher  or  lower 
values than in an otherwise constant currency exchange rate environment, in particular with regard to British Pounds and Euros. 
In addition, changes in the remeasurement of our foreign currency denominated net assets are recorded as part of our results of 
operations and fluctuate with changes in foreign currency rates. We monitor our net exposure in foreign currencies on a daily 
basis  and  hedge  our  exposure  as  deemed  appropriate  with  major  financial  institutions.  However,  potential  movements  in  the 
U.S. dollar against other currencies in which we earn revenues have in the past and may in the future materially adversely affect 
our financial results.

Furthermore,  our  revenues  derived  from  non-U.S.  operations  are  subject  to  risk  of  loss  from  social  or  political 
instability, changes in government policies or policies of central banks, downgrades in the credit ratings of sovereign countries, 
expropriation,  nationalization,  confiscation  of  assets  and  unfavorable  legislative,  political  developments,  and  other  events  in 
such non-U.S. jurisdictions. Revenues from the trading of non-U.S. securities may be subject to negative fluctuations as a result 
of  the  above  factors.  The  impact  of  these  fluctuations  on  our  results  could  be  magnified  because  generally  non-U.S.  trading 
markets, particularly in emerging market countries, are smaller, less liquid and more volatile than U.S. trading markets.

Employee misconduct, fraud, miscommunication or error could harm us by impairing our ability to attract and 
retain customers and subjecting us to significant financial losses, legal liability, regulatory sanctions and penalties and 
reputational harm; moreover, misconduct is difficult to detect and deter, and error is difficult to prevent.

Employee misconduct, fraud or error could subject us to financial losses, legal liability, and regulatory sanctions and 
penalties and could seriously harm our reputation and negatively affect us. Misconduct or fraud by employees could include 
engaging  in  improper  or  unauthorized  transactions  or  activities,  failing  to  properly  supervise  other  employees  or  improperly 
using confidential information.

Employee  errors  and  miscommunication,  including  mistakes  in  executing,  recording  or  processing  transactions  for 
customers,  could  cause  us  to  suffer  liability,  loss,  sanction  and/or  reputational  harm,  which  could  expose  us  to  the  risk  of 
material  losses  even  if  the  errors  and  miscommunication  are  detected  and  the  transactions  are  unwound  or  reversed.  If  our 
customers are not able to settle their transactions on a timely basis, the time in which employee errors and miscommunication 
are  detected  may  be  increased  and  our  risk  of  material  loss  could  be  increased.  The  risk  of  employee  error  and 
miscommunication may be greater for products or services that are new or have non-standardized terms.

It is not always possible to deter and detect employee misconduct or fraud or prevent errors and miscommunications. 
While we have various supervisory systems and compliance processes and procedures in place, and seek to mitigate applicable 
risks, the precautions we take to deter and detect and prevent this activity may not be effective in all cases.

See “—The financial services industry in general faces potential regulatory, litigation and/or criminal risks that may 
result in damages or fines or other penalties as well as costs, and we may face damage to our professional reputation and legal 
liability if our products and services are not regarded as satisfactory, our employees do not adhere to all applicable legal and 
professional  standards,  or  for  other  reasons,  all  of  which  could  have  a  material  adverse  effect  on  our  business,  financial 
condition, results of operations and prospects.”

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Although portions of our compensation structure are variable, significant parts of our cost structure are fixed, 
and  if  our  revenues  decline  and  we  are  unable  to  reduce  our  costs  in  the  amount  that  our  revenues  decline,  our 
profitability could be materially adversely affected.

Although portions of our compensation structure are variable, significant parts of our cost structure are fixed. We base 
our  overall  cost  structure  on  historical  and  expected  levels  of  demand  for  our  products  and  services.  If  demand  for  these 
products and services and our resulting revenues decline, we may not be able to adjust our cost structure on a timely basis. If we 
are unable to reduce our costs in the amount that our revenues decline, our profitability could be materially adversely affected.

Increased scrutiny and changing expectations from stockholders with respect to the Company's ESG practices 

may result in additional costs or risks.

Companies across our industry are facing increasing scrutiny related to their ESG practices. Investor advocacy groups, 
certain institutional investors, investment funds and other influential investors are also increasingly focused on ESG practices 
and in recent years have placed increasing importance on the non-financial impacts of their investments. Further, customer bids, 
requests  for  proposals  and  other  customer  arrangements  or  opportunities  may  require  disclosure  of  ESG  metrics  in  order  to 
compete for business. While we are focused on our ESG efforts and disclosures, if our ESG practices do not meet customer, 
investor or other industry stockholder expectations, which continue to evolve, we may not win or may lose customers, or may 
incur additional costs and our business, financial condition, results of operations and prospects could be materially adversely 
affected.

RISKS RELATED TO OUR CORPORATE AND PARTNERSHIP STRUCTURE

Risks Related to Our Corporate Structure

Because our voting control is concentrated among the holders of our Class B common stock, the market price of 

our Class A common stock may be materially adversely affected by its disparate voting rights.

As of February 27, 2023, Cantor (including CFGM) beneficially owned all of the outstanding shares of our Class B 
common  stock,  representing  approximately  58.3%  of  our  total  voting  power.  In  addition,  Cantor  has  the  right  to  exchange 
exchangeable partnership interests in BGC Holdings into additional shares of our Class B common stock, and pursuant to an 
exchange agreement with us, Cantor has the right to exchange shares of our Class A common stock for additional shares of our 
Class B common stock.

As long as Cantor beneficially owns a majority of our total voting power, it will have the ability, without the consent 
of the public holders of our Class A common stock, to elect all of the members of our Board and to control our management 
and affairs. In addition, it will be able to determine the outcome of matters submitted to a vote of our stockholders for approval 
and will be able to cause or prevent a change of control of us. In certain circumstances, such as when transferred to an entity 
controlled  by  Cantor  or  Mr.  Lutnick,  the  shares  of  our  Class  B  common  stock  issued  to  Cantor  may  be  transferred  without 
conversion to our Class A common stock.

The holders of our Class A common stock and Class B common stock have substantially identical rights, except that 
holders of Class A common stock are entitled to one vote per share, while holders of Class B common stock are entitled to 10 
votes per share on all matters to be voted on by stockholders in general. BGC Class B common stock is controlled by Cantor 
and is not subject to conversion or termination by our Board or any committee thereof, or any other stockholder or third party. 
This  differential  in  the  voting  rights  of  our  Class  B  common  stock  could  adversely  affect  the  market  price  of  our  Class  A 
common stock.

Delaware law may protect decisions of our Board that have a different effect on holders of our Class A common 

stock and Class B common stock.

Stockholders may not be able to challenge decisions that have an adverse effect upon holders of our Class A common 
stock compared to holders of our Class B common stock if our Board acts in a disinterested, informed manner with respect to 
these decisions, in good faith and in the belief that it is acting in the best interests of our stockholders. Delaware law generally 
provides  that  a  Board  owes  an  equal  duty  to  all  stockholders,  regardless  of  class  or  series,  and  does  not  have  separate  or 
additional duties to different groups of stockholders, subject to applicable provisions set forth in a corporation’s certificate of 
incorporation and general principles of corporate law and fiduciary duties.

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Delaware  law,  our  corporate  organizational  documents  and  other  requirements  may  impose  various 
impediments  to  the  ability  of  a  third  party  to  acquire  control  of  us,  which  could  deprive  investors  in  our  Class  A 
common stock of the opportunity to receive a premium for their shares.

We are a Delaware corporation, and the anti-takeover provisions of Delaware law impose various impediments to the 
ability of a third party to acquire control of us, even if a change of control would be beneficial to our Class A stockholders. 
Some  provisions  of  the  Delaware  General  Corporation  Law  (the  “DGCL”),  our  restated  certificate  of  incorporation,  and  our 
amended and restated bylaws could make the following more difficult:

•

•

•

acquisition of us by means of a tender offer;

acquisition of us by means of a proxy contest or otherwise; or

removal of our incumbent officers and directors.

These provisions, summarized below, may discourage coercive takeover practices and inadequate takeover bids. These
provisions may also encourage persons seeking to acquire control of us to first negotiate with our Board. We believe that the 
benefits  of  increased  protection  give  us  the  potential  ability  to  negotiate  with  the  initiator  of  an  unfriendly  or  unsolicited 
proposal  to  acquire  or  restructure  us  and  outweigh  the  disadvantages  of  discouraging  those  proposals  because  negotiation  of 
them could result in an improvement of their terms.

Our amended and restated bylaws provide that special meetings of stockholders may be called only by the Chairman of 
our  Board,  or  in  the  event  the  Chairman  of  our  Board  is  unavailable,  by  the  Chief  Executive  Officer  or  by  the  holders  of  a 
majority  of  the  voting  power  of  our  Class  B  common  stock,  which  is  held  by  Cantor  and  CFGM.  In  addition,  our  restated 
certificate of incorporation permits us to issue “blank check” preferred stock.

Our amended and restated bylaws require advance written notice prior to a meeting of our stockholders of a proposal 
or  director  nomination  which  a  stockholder  desires  to  present  at  such  a  meeting,  which  generally  must  be  received  by  our 
Secretary not later than 120 days prior to the first anniversary of the date of our proxy statement for the preceding year’s annual 
meeting.  In  the  event  that  the  date  of  the  annual  meeting  is  more  than  30  days  before  or  more  than  60  days  after  such 
anniversary date, notice by the stockholder to be timely must be so delivered not later than the close of business on the later of 
the 120th day prior to the date of such proxy statement or the tenth day following the day on which public announcement of the 
date of such meeting is first made by us. Our bylaws provide that all amendments to our bylaws must be approved by either the 
holders of a majority of the voting power of all of our outstanding capital stock entitled to vote or by a majority of our Board.

We are subject to Section 203 of the DGCL. In general, Section 203 of the DGCL prohibits a publicly held Delaware 
corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years following 
the date the person became an interested stockholder, unless the “business combination” or the transaction in which the person 
became an “interested stockholder” is approved in a prescribed manner. Generally, a “business combination” includes a merger, 
asset  or  stock  sale  or  other  transaction  resulting  in  a  financial  benefit  to  the  “interested  stockholder.”  An  “interested 
stockholder” is a person who, together with affiliates and associates, owns 15% or more of a corporation’s outstanding voting 
stock, or was the owner of 15% or more of a corporation’s outstanding voting stock at any time within the prior three years, 
other than “interested stockholders” prior to the time our Class A common stock was traded on Nasdaq. The existence of this 
provision would be expected to have an anti-takeover effect with respect to transactions not approved in advance by our Board, 
including  discouraging  takeover  attempts  that  might  result  in  a  premium  over  the  market  price  for  shares  of  our  Class  A 
common stock.

In  addition,  our  brokerage  business  is  heavily  regulated  and  some  of  our  regulators  require  that  they  approve 
transactions  which  could  result  in  a  change  of  control,  as  defined  by  the  then-applicable  rules  of  our  regulators.  The 
requirement that this approval be obtained may prevent or delay transactions that would result in a change of control.

Further,  our  Equity  Plan  contains  provisions  pursuant  to  which  grants  that  are  unexercisable  or  unvested  may 
automatically become exercisable or vested as of the date immediately prior to certain change of control events. Additionally, 
change  in  control  and  employment  agreements  between  us  and  our  named  executive  officers  also  provide  for  certain  grants, 
payments, and grants of exchangeability, and exercisability in the event of certain change of control events.

The foregoing factors, as well as the significant common stock ownership by Cantor, including shares of our Class B 
common  stock,  and  rights  to  acquire  additional  such  shares,  and  the  provisions  of  the  indentures  for  our  outstanding  notes 
discussed  above,  could  impede  a  merger,  takeover  or  other  business  combination  or  discourage  a  potential  investor  from 
making a tender offer for our Class A common stock, which, under certain circumstances, could reduce the market value of the 
Class A common stock.

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The dual class structure of our common stock may adversely affect the trading market for our Class A common 

stock.

S&P Dow Jones and FTSE Russell previously announced changes to their eligibility criteria for inclusion of shares of 
public companies on certain indices, including the S&P 500, to exclude companies with multiple classes of shares of common 
stock  from  being  added  to  such  indices  or  limit  their  inclusion  in  them.  In  addition,  several  shareholder  advisory  firms  have 
announced their opposition to the use of multiple class structures. As a result, the dual class structure of our common stock may 
prevent  the  inclusion  of  our  Class  A  common  stock  in  such  indices  and  may  cause  shareholder  advisory  firms  to  publish 
negative commentary about our corporate governance practices or otherwise seek to cause us to change our capital structure. 
Any  such  exclusion  from  indices  could  result  in  a  less  active  trading  market  for  our  Class  A  common  stock.  Any  actions  or 
publications  by  shareholder  advisory  firms  critical  of  our  corporate  governance  practices  or  capital  structure  could  also 
adversely affect the value of our Class A common stock.

We are a holding company, and accordingly we are dependent upon distributions from BGC U.S. OpCo and 

BGC Global OpCo to pay dividends, taxes and indebtedness and other expenses and to make repurchases.

We are a holding company with no direct operations and will be able to pay dividends, taxes and other expenses, and 
to make repurchases of shares our Class A common stock and purchases of BGC Holdings limited partnership interests or other 
equity interests in us or in our subsidiaries, only from our available cash on hand and funds received from distributions, loans or 
other  payments,  primarily  from  BGC  U.S.  OpCo  and  BGC  Global  OpCo.  As  discussed  above,  regulatory,  tax  restrictions  or 
elections,  and  other  legal  or  contractual  restrictions  may  limit  our  ability  to  transfer  funds  freely  from  our  subsidiaries.  In 
addition,  any  unanticipated  accounting,  tax  or  other  charges  against  net  income  could  adversely  affect  our  ability  to  pay 
dividends and to make repurchases.

BGC U.S. OpCo and BGC Global OpCo intend to distribute to their limited partners, including us, on a pro rata and 
quarterly  basis,  cash  that  is  not  required  to  meet  BGC  U.S.  OpCo’s  and  BGC  Global  OpCo’s  anticipated  business  and 
regulatory  needs.  As  a  result,  BGC  U.S.  OpCo’s  and  BGC  Global  OpCo’s  ability,  and  in  turn  our  ability,  to  pay  dividends, 
taxes and indebtedness and other expenses and to make repurchases will depend upon the continuing profitability and strategic 
and  operating  needs  of  our  business,  including  various  capital  adequacy  and  clearing  capital  requirements  promulgated  by 
federal, self-regulatory, and other authorities to which our subsidiaries are subject.

Traditionally,  our  dividend  policy  provides  that  we  expect  to  pay  a  quarterly  cash  dividend  to  our  common 
stockholders based on our post-tax Adjusted Earnings per fully diluted share. Please see below for a detailed definition of post-
tax  Adjusted  Earnings  per  fully  diluted  share.  Beginning  in  the  first  quarter  of  2020,  and  for  all  of  the  quarterly  periods 
following, the Board reduced the quarterly dividend to $0.01 per share out of an abundance of caution in order to strengthen the 
Company’s balance sheet as the global capital markets faced difficult and unprecedented macroeconomic conditions related to 
the global pandemic. Additionally, during 2020, BGC Holdings, L.P. reduced its distributions to or on behalf of its partners. 
Historically, we were deeply dividend-centric; going forward we plan to prioritize share and unit repurchases over dividends 
and  distributions.  The  Inflation  Reduction  Act  of  2022  provides  for  a  new  U.S.  federal  1%  excise  tax  on  stock  repurchases, 
which is effective January 1, 2023. We continue to analyze the impacts of the IR Act and related regulatory developments.

Any  dividends,  if  and  when  declared  by  our  Board,  will  be  paid  on  a  quarterly  basis.  The  dividend  to  our  common 
stockholders  is  expected  to  be  calculated  based  on  post-tax  Adjusted  Earnings  allocated  to  us  and  generated  over  the  fiscal 
quarter ending prior to the record date for the dividend. No assurance can be made, however, that a dividend will be paid each 
quarter. The declaration, payment, timing, and amount of any future dividends payable by us will be at the sole discretion of our 
Board. With respect to any distributions which are declared, amounts paid to or on behalf of partners will at least cover their 
related  tax  payments.  Whether  any  given  post-tax  amount  is  equivalent  to  the  amount  received  by  a  stockholder  also  on  an 
after-tax basis depends upon stockholders’ and partners’ domiciles and tax status.

We  are  a  holding  company,  with  no  direct  operations,  and  therefore  we  are  able  to  pay  dividends  only  from  our 
available cash on hand and funds received from distributions from BGC U.S. OpCo and BGC Global OpCo. Our ability to pay 
dividends may also be limited by regulatory considerations as well as by covenants contained in financing or other agreements. 
In addition, under Delaware law, dividends may be payable only out of surplus, which is our net assets minus our capital (as 
defined  under  Delaware  law),  or,  if  we  have  no  surplus,  out  of  our  net  profits  for  the  fiscal  year  in  which  the  dividend  is 
declared and/or the preceding fiscal year. Accordingly, any unanticipated accounting, tax, regulatory or other charges against 
net  income  may  adversely  affect  our  ability  to  declare  and  pay  dividends.  While  we  intend  to  declare  and  pay  dividends 
quarterly, there can be no assurance that our Board will declare dividends at all or on a regular basis or that the amount of our 
dividends will not change.

Our  Board  and  our  Audit  Committee  have  authorized  repurchases  of  shares  of  BGC  Class  A  common  stock  and 
purchases  of  BGC  Holdings  limited  partnership  interests  or  other  equity  interests  in  us  or  in  subsidiaries,  from  Cantor,  our 
executive officers, other employees, partners and others. On November 4, 2022, the Company's Board and Audit Committee re-

64

authorized  our  share  repurchase  and  unit  redemption  authorization  to  $400.0  million,  which  may  include  purchases  from 
Cantor, its partners or employees or other affiliated persons or entities. As of December 31, 2022, we had approximately $376.4 
million remaining under this authorization and may continue to actively make repurchases or purchases, or cease to make such 
repurchases or purchases, from time to time. In addition, from time to time, we may reinvest all or a portion of the distributions 
we receive from BGC U.S. OpCo and BGC Global OpCo in our business. Accordingly, there can be no assurance that future 
dividends will be paid or that dividend amounts will be maintained or that repurchases and purchases will be made at current or 
future levels.

If our dividend policy is materially different than the distribution policy of BGC Holdings, upon the exchange 
of  any  BGC  Holdings  limited  partnership  interests  such  BGC  Holdings  limited  partners  could  receive  a 
disproportionate interest in the aggregate distributions by BGC U.S. OpCo and BGC Global OpCo that have not been 
distributed by us.

To the extent BGC Holdings distributes to its limited partners a greater share of that income that it receives from BGC 
U.S.  OpCo  and  BGC  Global  OpCo  than  we  distribute  to  our  stockholders,  then  as  founding/working  partners,  limited 
partnership unit holders and/or Cantor exercise any exchange right to acquire our Class A common stock or Class B common 
stock,  as  applicable,  exchanging  partners  may  receive  a  disproportionate  interest  in  the  aggregate  distributions  by  BGC  U.S. 
OpCo and BGC Global OpCo that have not been distributed by us. The reason is that the exchanging partner could receive both 
(1) the benefit of the distribution that has not been distributed by us that we received from BGC U.S. OpCo and BGC Global
OpCo  to  BGC  Holdings  (in  the  form  of  a  distribution  by  BGC  Holdings  to  its  limited  partners)  and  (2)  the  benefit  of  the
distribution from BGC U.S. OpCo and BGC Global OpCo to us (in the form of a subsequent cash dividend paid by us, a greater
percentage indirect interest in BGC U.S. OpCo and BGC Global OpCo following a repurchase of BGC Class A common stock
by us or a greater value of assets following a purchase of assets by us with the cash that otherwise would be distributed to our
stockholders). Consequently, if our dividend policy does not match the level of the distribution policy of BGC Holdings, other
holders  of  BGC  Class  A  common  stock  and  BGC  Class  B  common  stock  as  of  the  date  of  an  exchange  could  experience  a
reduction in their interest in the profits previously distributed by BGC U.S. OpCo and BGC Global OpCo that have not been
distributed by us. Our current dividend policy could result in distributions to our common stockholders that are different from
the distributions made by BGC Holdings to its unit holders.

If  we  or  BGC  Holdings  were  deemed  an  “investment  company”  under  the  Investment  Company  Act,  the 
Investment  Company  Act’s  restrictions  could  make  it  impractical  for  us  to  continue  our  business  and  structure  as 
contemplated  and  could  materially  adversely  affect  our  business,  financial  condition,  results  of  operations,  and 
prospects.

Generally, an entity is deemed an “investment company” under Section 3(a)(1)(A) of the Investment Company Act if 
it  is  primarily  engaged  in  the  business  of  investing,  reinvesting,  or  trading  in  securities,  and  is  deemed  an  “investment 
company” under Section 3(a)(1)(C) of the Investment Company Act if it owns “investment securities” having a value exceeding 
40% of the value of its total assets (exclusive of U.S. Government Securities and cash items) on an unconsolidated basis. We 
believe  that  neither  we  nor  BGC  Holdings  should  be  deemed  an  “investment  company”  as  defined  under  Section  3(a)(1)(A) 
because neither of us is primarily engaged in the business of investing, reinvesting, or trading in securities. Rather, through our 
operating subsidiaries, we and BGC Holdings are primarily engaged in the operation of various types of brokerage businesses 
as described in this report. Neither we nor BGC Holdings is an “investment company” under Section 3(a)(1)(C) because more 
than 60% of the value of our total assets on an unconsolidated basis are interests in majority-owned subsidiaries that are not 
themselves “investment companies.” In particular, our BGC brokerage subsidiaries are entitled to rely on, among other things, 
the broker-dealer/market intermediary exemption in Section 3(c)(2) of the Investment Company Act.

To ensure that we and BGC Holdings are not deemed “investment companies” under the Investment Company Act, we 
need to be primarily engaged, directly or indirectly, in the non-investment company business of our operating subsidiaries. If 
we were to cease participation in the management of BGC Holdings, if BGC Holdings, in turn, were to cease participation in 
the management of the BGC OpCos, or if the BGC OpCos, in turn, were to cease participation in the management of our BGC 
operating subsidiaries, that would increase the possibility that we and BGC Holdings could be deemed “investment companies.” 
Further, if we were deemed not to have a majority of the voting power of BGC Holdings (including through our ownership of 
the Special Voting Limited Partnership Interest), if BGC Holdings, in turn, were deemed not to have a majority of the voting 
power  of  the  BGC  OpCos  (including  through  its  ownership  of  Special  Voting  Limited  Partnership  Interests),  or  if  the  BGC 
OpCos, in turn, were deemed not to have a majority of the voting power of our BGC operating subsidiaries, that would increase 
the possibility that we and BGC Holdings could be deemed “investment companies,” our interests in BGC Holdings and the 
BGC OpCos could be deemed “investment securities,” and we and BGC Holdings could be deemed “investment companies.”

We  expect  to  take  all  legally  permissible  action  to  ensure  that  we  and  BGC  Holdings  are  not  deemed  investment 

companies under the Investment Company Act, but no assurance can be given that this will not occur.

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The  Investment  Company  Act  and  the  rules  thereunder  contain  detailed  prescriptions  for  the  organization  and 
operations  of  investment  companies.  Among  other  things,  the  Investment  Company  Act  and  the  rules  thereunder  limit  or 
prohibit transactions with affiliates, limit the issuance of debt and equity securities, prohibit the issuance of stock options, and 
impose certain governance requirements. If anything were to happen that would cause us or BGC Holdings to be deemed to be 
an  “investment  company”  under  the  Investment  Company  Act,  the  Investment  Company  Act  would  limit  our  or  its  capital 
structure, ability to transact business with affiliates (including Cantor, BGC Holdings or the BGC OpCos as the case may be), 
and ability to compensate key employees. Therefore, if we or BGC Holdings became subject to the Investment Company Act, it 
could  make  it  impractical  to  continue  our  business  in  this  structure,  impair  agreements  and  arrangements,  and  impair  the 
transactions contemplated by those agreements and arrangements, between and among us, BGC Holdings and the BGC OpCos, 
or  any  combination  thereof,  and  materially  adversely  affect  our  business,  financial  condition,  results  of  operations,  and 
prospects.

Risks Related to Our Partnership and Equity-Based Compensation Structure

Our  equity-based  compensation  structure  may  adversely  affect  our  ability  to  recruit,  retain,  compensate  and 

motivate some employee partners.

While  we  believe  that  our  emphasis  on  equity-based  compensation  promotes  recruitment,  motivation  of  our  brokers 
and  other  employees  and  alignment  of  interest  with  stockholders,  such  employee  may  be  more  attracted  to  the  benefits  of 
working  at  a  privately  controlled  partnership,  or  at  a  public  company  with  a  different  compensation  structure  than  our  own, 
which may adversely affect our ability to recruit, retain, compensate and motivate these persons. While BGC Holdings limited 
partnership  interests  entitle  founding/working  and  other  limited  partners  to  participate  in  distributions  of  income  from  the 
operations of our business, upon leaving BGC Holdings (or upon any other purchase of such limited partnership interests, as 
described below), any such founding/working or other limited partners are, unless Cantor, in the case of the founding partners, 
and us, as the general partner of BGC Holdings, otherwise determine, only entitled to receive over time, and provided he or she 
does not violate certain partner obligations, an amount for his or her BGC Holdings limited partnership interests that reflects 
such  partner’s  capital  account  or  post-termination  amount,  if  any,  and  not  any  goodwill  or  going  concern  value  of  our 
businesses. Further, certain partner units have no right to a post-termination payment, receive a preferred but fixed distribution 
amount, and/or cannot be made exchangeable into shares of our Class A common stock. Moreover, unless and until units are 
made exchangeable, limited partners have no unilateral right to exchange their BGC Holdings limited partnership interests for 
shares of BGC Class A common stock.

The  BGC  Holdings  limited  partnership  interests  are  also  subject  to  redemption,  and  subject  founding/working  and 
other limited partners to non-competition and non-solicitation covenants, as well as other obligations. In addition, the exercise 
of  Cantor’s  right  to  purchase  from  BGC  Holdings  exchangeable  limited  partnership  interests  generally  when  FPUs  are 
redeemed or granted exchangeability will result in the share of distributions of income from the operations of our business on 
other  outstanding  BGC  Holdings  limited  partnership  interests,  including  those  held  by  founding/working  and  other  limited 
partners,  to  remain  the  same  rather  than  increasing  as  would  be  the  case  if  such  interests  were  redeemed  or  granted 
exchangeability without such Cantor right to purchase. In addition, any purchase of exchangeable limited partnership units by 
Cantor from BGC Holdings following Cantor’s decision to grant exchangeability on FPUs will result in additional dilution to 
the other partners of BGC Holdings.

The  terms  of  the  BGC  Holdings  limited  partnership  interests  held  by  founding/working  and  limited  partners  also 

provide for the following:

•

•

such units are not entitled to reinvest the distributions on their BGC Holdings limited partnership interests in
additional BGC Holdings limited partnership interests at preferential or historical prices or at all; and

Cantor  is  entitled  to  receive  any  amounts  from  selected  extraordinary  transactions  that  are  withheld  from
distributions to certain partners and forfeited by partners leaving BGC Holdings prior to their interests in such
withheld distributions fully vesting, rather than any such forfeited amounts accruing to the benefit of all BGC
Holdings limited partners on a pro rata basis.

In addition, the ability to acquire shares of our Class A common stock underlying BGC Holdings exchangeable units is 
not dependent upon the partner’s continued employment with us or compliance with partner obligations, and such partners are 
therefore not restricted from leaving us by the potential loss of such shares.

On  November  15,  2022,  we  and  BGC  Holdings,  along  with  certain  other  entities,  entered  into  the  Corporate 
Conversion  Agreement  in  order  to  reorganize  and  simplify  our  organizational  structure  through  the  Corporate  Conversion 
Transactions. There is no assurance that the equity compensation-based retention and motivation features of our new structure 
will be as effective as those of our current partnership structure.

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We may be required to pay Cantor for a significant portion of the tax benefit, if any, relating to any additional 
tax depreciation or amortization deductions we claim as a result of any step up in the tax basis of the assets of BGC U.S. 
OpCo or BGC Global OpCo resulting from Cantor’s exchanges of interests in BGC Holdings (together with, prior to the 
Spin-Off, interests in Newmark Holdings) for our common stock.

Certain partnership interests in BGC Holdings may be exchanged for shares of BGC Partners common stock. In the 
vast  majority  of  cases,  the  partnership  units  that  become  exchangeable  for  shares  of  BGC  common  stock  are  units  that  have 
been granted as compensation, and, therefore, the exchange of such units will not result in an increase in BGC’s share of the tax 
basis of the tangible and intangible assets of BGC U.S. OpCo, BGC Global OpCo and/or Newmark OpCo. However, exchanges 
of other partnership units – including non-tax-free exchanges of units by Cantor – could result in an increase in the tax basis of 
such tangible and intangible assets that otherwise would not have been available, although the IRS may challenge all or part of 
that tax basis increase, and a court could sustain such a challenge by the IRS. These increases in tax basis, if sustained, may 
reduce the amount of tax that BGC would otherwise be required to pay in the future. In such circumstances, the tax receivable 
agreement  that  BGC  entered  into  with  Cantor  provides  for  the  payment  by  BGC  to  Cantor  of  85%  of  the  amount  of  cash 
savings, if any, in the U.S. federal, state and local income tax or franchise tax that BGC actually realizes as a result of these 
increases  in  tax  basis  and  certain  other  tax  benefits  related  to  its  entering  into  the  tax  receivable  agreement,  including  tax 
benefits attributable to payments under the tax receivable agreement. It is expected that BGC will benefit from the remaining 
15% cash savings, if any, in income tax that we realize.

Risks Related to the Corporate Conversion 

The expected benefits of the Corporate Conversion may not be obtained.

The Corporate Conversion is being undertaken in order to simplify the corporate structure of our business. We believe 
that,  following  the  Corporate  Conversion  Transactions,  the  organizational  structure  of  the  BGC  businesses  will  be  more 
comprehensible to the marketplace, which may, in turn, increase demand for our shares and assist in the goal of maximizing 
long-term stockholder value. By simplifying the organizational structure, the Corporate Conversion is also intended to improve 
stockholder  value  by  reducing  administrative  costs  and  increasing  the  efficiency  of  our  regulated  businesses  and  associated 
capital requirements. However, it is possible that these expected benefits are not achieved. There can be no assurance that (i) 
our  brokers  and  other  employees,  the  rating  agencies,  our  lenders,  our  bondholders,  our  investors,  our  counterparties,  our 
clients, or others will view our new structure favorably, (ii) that the new structure will have the expected retentive effect on said 
employees or (iii) that the new structure will have the expected impact on our GAAP or non-GAAP results, cash position, cash 
or  non-cash  accounting  charges,  tax  rate,  or  other  factors.  Furthermore,  the  Corporate  Conversion  Transactions  will  involve 
significant  time,  expense  and  management  attention.  Any  of  these  factors  or  others  could  negatively  affect  our  business, 
financial condition, results of operations and prospects.

Our  equity-based  compensation  structure  will  be  different  following  the  Corporate  Conversion  because  all  of 
our equity-based compensation will be issued by BGC Group, Inc. This change in equity-based compensation structure 
could adversely affect our ability to recruit, retain, compensate and motivate some of its employees.

Currently,  certain  of  our  employees  receive  equity-based  compensation  at  BGC  Holdings,  which  is  taxed  as  a 
partnership for U.S. federal income tax purposes and provides for distributions of income from the operations of our businesses. 
Following  the  closing  of  the  Corporate  Conversion  Transactions,  our  employees  will  receive  equity-based  compensation  at 
BGC Group, Inc., the new public entity. Some of our employees may be more attracted to the benefits of being compensated at 
a privately controlled partnership, and the change in structure could adversely affect our ability to recruit, retain, compensate 
and motivate these persons. In addition, the equity-based compensation structure following the Corporate Conversion will no 
longer  have  certain  other  benefits  of  BGC  Holding’s  partnership  structure,  including  certain  duties  owed  by,  and  post-
employment restrictive covenants applicable to, the limited partners in BGC Holdings.

We  are  currently  controlled  by  Cantor,  but  the  Corporate  Conversion  will  have  the  effect  of  increasing  the 
percentage  of  voting  power  held  by  Cantor  as  a  result  of  the  issuance  of  BGC  Group,  Inc.  Class  B  common  stock  in 
exchange for the BGC Holdings exchangeable units held by Cantor. The increase in voting power held by Cantor could 
result in Cantor exercising control over BGC Group, Inc. for a longer period of time than it would over us absent the 
Corporate Conversion. 

As of December 31, 2022, Cantor (including its general partner) beneficially owned 45.9 million shares of our Class B 
common stock, representing approximately 58.5% of the total voting power of our common stock. In addition, as of December 
31,  2022,  Cantor  (including  its  general  partner)  beneficially  owned  57.6  million  units  of  exchangeable  limited  partnership 
interests in BGC Holdings. If Cantor (including its general partner) were to exchange all of such units into our common stock 

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absent the Corporate Conversion, it would receive 23.6 million shares of our Class B common stock and 34.0 million shares of 
our  Class  A  common  stock.  These  shares,  when  taken  together  with  Cantor’s  existing  shares  of  our  Class  B  common  stock, 
would represent approximately 69.1% of the total voting power of our common stock as of December 31, 2022 following such 
exchange.  As  a  result  of  the  Corporate  Conversion,  each  share  of  our  Class  B  common  stock  held  by  Cantor  (including  its 
general  partner)  will  be  converted  into  one  share  of  our  Class  B  common  stock,  and  each  unit  of  exchangeable  limited 
partnership interests in BGC Holdings held by Cantor (including its general partner) will also be converted into one share of our 
Class B common stock. In addition, in connection with the Corporate Conversion Transactions, it is expected that Cantor will 
exercise  certain  purchase  rights  set  forth  in  the  BGC  Holdings  limited  partnership  agreement  and  as  contemplated  in  the 
Corporate  Conversion  Agreement,  resulting  in  the  acquisition  by  Cantor  of  an  additional  approximately  6.8  million  of 
exchangeable  limited  partnership  units  that  will  be  converted  in  the  Corporate  Conversion  Transactions  as  set  forth  in  the 
Corporate  Conversion  Agreement.  Therefore,  following  the  Corporate  Conversion,  Cantor  (including  its  general  partner)  is 
expected to beneficially own approximately 110 million shares of our Class B common stock, which as of December 31, 2022 
is expected to represent approximately 74.6% of the total voting power of our common stock. Cantor’s voting power over BGC 
Group, Inc. as of immediately following the Corporate Conversion will therefore be approximately 5.5 percentage points higher 
than its voting power over BGC Partners would be if Cantor had exchanged its exchangeable limited partnership interests in 
BGC Holdings for our common stock absent the Corporate Conversion. This increase in percentage voting power could result 
in  Cantor  exercising  control  over  BGC  Group,  Inc.  for  a  longer  period  of  time  than  it  would  over  us  absent  the  Corporate 
Conversion.

The ability of Cantor and Howard W. Lutnick (indirectly through his control of Cantor) to exercise control over BGC 
Group, Inc. could create or appear to create potential conflicts of interest. Conflicts of interest may arise between BGC Group, 
Inc. and Cantor in a number of areas relating to past and ongoing relationships, including:

•

•

•

•

•

•

•

•

•

potential acquisitions and dispositions of businesses;

the issuance, acquisition or disposition of securities by BGC Group, Inc.;

the election of new or additional directors to the BGC Group, Inc. board of directors;

the payment of dividends by BGC Group, Inc. (if any) and repurchases of shares of BGC Group, Inc. Class A
common stock;

any loans to or from BGC Group, Inc. or Cantor;

business  operations  or  business  opportunities  of  BGC  Group,  Inc.  and  Cantor  that  would  compete  with  the
other party’s business opportunities, including Cantor’s and BGC Partners’ brokerage and financial services;

intellectual property matters;

business combinations involving BGC Group, Inc.; and

competition between BGC Group, Inc.’s and Cantor’s other businesses.

Under the terms of the Corporate Conversion agreement, a portion of the BGC Group, Inc. Class B common stock that
will  be  received  by  Cantor  in  the  Corporate  Conversion  is  subject  to  potential  conversion  into  BGC  Group,  Inc.  Class  A 
common stock if BGC Group, Inc. does not issue shares of BGC Group, Inc. common stock with an aggregate value of at least 
$75,000,000 (with the value of each issuance calculated based on the closing market price of BGC Group, Inc. common stock 
on the date of issuance), after the closing of the Corporate Conversion and on or prior to the seventh anniversary of the closing 
of the Corporate Conversion, in connection with mergers, acquisitions and business combinations undertaken by BGC Group, 
Inc. or any of its subsidiaries. If BGC Group, Inc. does not issue at least such amount of shares in such circumstances during 
such seven-year period, then approximately 40.4 million shares of BGC Group, Inc. Class B common stock held by Cantor will 
be  converted  into  an  equivalent  number  of  BGC  Group,  Inc.  Class  A  common  stock  at  the  end  of  such  seven-year  period 
(provided that such number will be decreased to the extent that Cantor has sold or transferred any BGC Group, Inc. Class B 
common stock to a third party and converted such shares into BGC Group, Inc. Class A common stock during such seven-year 
period).

Delay in completing the Corporate Conversion Transactions could negatively impact the market price of shares 

of our Class A common stock and financial results of our business.

The  completion  of  the  Corporate  Conversion  Transactions  is  subject  to  certain  closing  conditions,  including  (i)  the 
adoption  of  the  Corporate  Conversion  Agreement  by  the  requisite  approval  of  our  stockholders,  (ii)  the  absence  of  any 
governmental  injunction  or  order  prohibiting  the  consummation  of  any  merger  or  the  other  transactions  contemplated  by  the 
Corporate Conversion Agreement, (iii) the BGC Group, Inc. Class A common stock issuable in connection with the Corporate 
Conversion  Transactions  having  been  approved  for  listing  on  the  Nasdaq  Global  Select  Market,  subject  to  official  notice  of 

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issuance,  (iv)  the  effectiveness  of  the  registration  statement  to  be  filed  with  the  SEC  on  Form  S-4  in  connection  with  the 
Corporate  Conversion  Transactions,  (v)  the  accuracy  of  each  party’s  respective  representations  and  warranties,  generally 
subject to a material adverse effect qualification, (vi) the performance by the parties of their respective obligations under the 
Corporate  Conversion  Agreement  in  all  material  respects,  (vii)  our  receipt  of  a  legal  opinion  as  to  the  tax  treatment  of  the 
Corporate  Conversion  Transactions,  and  (viii)  Cantor’s  receipt  of  a  legal  opinion  as  to  the  tax  treatment  of  the  Corporate 
Conversion Transactions. In addition, each of Cantor and us have the right to terminate the Corporate Conversion Agreement if 
certain  tax  legislation  is  proposed  or  enacted  that,  if  implemented,  could  materially  increase  the  taxes  directly  or  indirectly 
borne by the partners of Cantor or BGC Holdings or our stockholders (including, without limitation, as a result of an increase in 
the corporate income tax rate or as a result of an increase in the dividend tax rate) if the Corporate Conversion Transactions 
were completed versus if they were not. Any of these factors or others could delay the completion of the Corporate Conversion 
which may in turn negatively affect our business and impact the market price of share of our Class A common stock if such 
delay is not promptly remedied.

RISKS RELATED TO OUR RELATIONSHIP WITH CANTOR AND ITS AFFILIATES

We are controlled by Cantor and Mr. Lutnick, who have potential conflicts of interest with us and may exercise 

their control in a way that favors their interests to our detriment.

Cantor,  and  Mr.  Lutnick,  indirectly  through  his  control  of  Cantor,  are  each  able  to  exercise  control  over  our 
management  and  affairs  and  all  matters  requiring  stockholder  approval,  including  the  election  of  our  directors  and 
determinations  with  respect  to  acquisitions  and  dispositions,  as  well  as  material  expansions  or  contractions  of  our  business, 
entry into new lines of businesses and borrowings and issuances of our Class A common stock and Class B common stock or 
other  securities.  This  control  is  subject  to  the  approval  of  our  Audit  Committee  on  those  matters  requiring  such  approval. 
Cantor’s voting power may also have the effect of delaying or preventing a change of control of us.

Cantor’s  and  Mr.  Lutnick’s  ability  to  exercise  control  over  us  could  create  or  appear  to  create  potential  conflicts  of 
interest.  Conflicts  of  interest  may  arise  between  us  and  Cantor  in  a  number  of  areas  relating  to  our  past  and  ongoing 
relationships, including:

•

•

•

•

•

•

•

•

•

•

•

•

potential  acquisitions  and  dispositions  of  businesses,  mergers,  joint  ventures,  investments  or  similar
transactions;

the issuance, acquisition or disposition of securities by us;

the election of new or additional directors to our Board;

the payment of dividends by us (if any), distribution of profits by BGC U.S. OpCo, BGC Global OpCo and/or
BGC  Holdings  and  repurchases  of  shares  of  our  Class  A  common  stock  or  purchases  of  BGC  Holdings
limited partnership interests or other equity interests in our subsidiaries, including from Cantor, our executive
officers, other employees, partners, and others;

any loans to or from us or Cantor, or any financings or credit arrangements that relate to or depend on our
relationship with Cantor or its relationship with us;

business operations or business opportunities of ours and Cantor’s that would compete with the other party’s
business opportunities, including Cantor’s and our brokerage and financial services;

intellectual property matters;

business combinations involving us;

conflicts between our agency trading for primary and secondary bond sales and Cantor’s investment banking
bond origination business;

competition  between  our  and  Cantor’s  other  equity  derivatives  and  cash  equity  inter-dealer  brokerage
businesses;

the nature, quality and pricing of administrative services to be provided to or by Cantor and/or Tower Bridge;
and

provision  of  clearing  capital  pursuant  to  the  Clearing  Agreement  and  potential  and  existing  loan
arrangements.

We also expect Cantor to manage its ownership of us so that it will not be deemed to be an investment company under 
the Investment Company Act, including by maintaining its voting power in us above a majority absent an applicable exemption 
from the Investment Company Act. This may result in conflicts with us, including those relating to acquisitions or offerings by 

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us  involving  issuances  of  shares  of  our  Class  A  common  stock,  or  securities  convertible  or  exchangeable  into  shares  of  our 
Class A common stock, which would dilute Cantor’s voting power in us.

In addition, Cantor has from time to time in the past and may in the future consider possible strategic realignments of 
its own business and/or of the relationships that exist between and among Cantor and its other affiliates and us. Any related-
party  transaction  or  arrangement  between  Cantor  and  its  other  affiliates  and  us  is  subject  to  the  prior  approval  by  our  Audit 
Committee, but generally does not otherwise require the separate approval of our stockholders, and if such stockholder approval 
is required, Cantor may retain sufficient voting power to provide any such requisite approval without the affirmative consent of 
the other stockholders. There is no assurance that such consolidation or restructuring would not result in a material expense or 
disruption to our business.

Moreover,  the  service  of  officers  or  partners  of  Cantor  as  our  executive  officers  and  directors,  and  those  persons’ 
ownership  interests  in  and  payments  from  Cantor  and  its  affiliates,  SPACs  and  similar  investments  or  other  entities,  could 
create conflicts of interest when we and those directors or executive officers are faced with decisions that could have different 
implications  for  us  and  Cantor.  Our  ability  to  retain  our  key  employees  and  the  ability  of  certain  key  employees  to  devote 
adequate  time  and  attention  to  us  are  critical  to  the  success  of  our  business,  and  failure  to  do  so  may  adversely  affect  our 
business, financial condition, results of operations and prospects.

Our  agreements  and  other  arrangements  with  Cantor  may  be  amended  upon  agreement  of  the  parties  to  those 
agreements upon approval of our Audit Committee. During the time that we are controlled by Cantor, Cantor may be able to 
require us to agree to amendments to these agreements. We may not be able to resolve any potential conflicts, and, even if we 
do, the resolution may be less favorable to us than if we were dealing with an unaffiliated party.

In order to address potential conflicts of interest between Cantor and its representatives and us, our restated certificate 
of  incorporation  contains  provisions  regulating  and  defining  the  conduct  of  our  affairs  as  they  may  involve  Cantor  and  its 
representatives, and our powers, rights, duties and liabilities and those of our representatives in connection with our relationship 
with  Cantor  and  its  affiliates,  officers,  directors,  general  partners  or  employees.  Our  restated  certificate  of  incorporation 
provides  that  no  Cantor  Company,  as  defined  in  our  restated  certificate  of  incorporation,  or  any  of  the  representatives,  as 
defined in our restated certificate of incorporation, of a Cantor Company will owe any fiduciary duty to, nor will any Cantor 
Company  or  any  of  their  respective  representatives  be  liable  for  breach  of  fiduciary  duty  to,  us  or  any  of  our  stockholders, 
including with respect to corporate opportunities. In addition, Cantor and its respective representatives have no duty to refrain 
from  engaging  in  the  same  or  similar  activities  or  lines  of  business  as  us  or  doing  business  with  any  of  our  customers.  The 
corporate opportunity policy that is included in our restated certificate of incorporation is designed to resolve potential conflicts 
of interest between us and Cantor and its representatives.

If any Cantor Company or any its representatives acquires knowledge of a potential transaction or matter that may be a 
corporate opportunity (as defined in our restated certificate of incorporation) for any such person, on the one hand, and us or 
any of our representatives, on the other hand, such person will have no duty to communicate or offer such corporate opportunity 
to us or any of our representatives, and will not be liable to us, any of our stockholders or any of our representatives for breach 
of any fiduciary duty by reason of the fact that they pursue or acquire such corporate opportunity for themselves, direct such 
corporate opportunity to another person or do not present such corporate opportunity us or any of our representatives, subject to 
the requirement described in the following sentence. If a third party presents a corporate opportunity to a person who is both our 
representative and a representative of a Cantor Company, expressly and solely in such person’s capacity as our representative, 
and such person acts in good faith in a manner consistent with the policy that such corporate opportunity belongs to us, then 
such  person  will  be  deemed  to  have  fully  satisfied  and  fulfilled  any  fiduciary  duty  that  such  person  has  to  us  as  our 
representative with respect to such corporate opportunity, provided that any Cantor Company or any of its representatives may 
pursue such corporate opportunity if we decide not to pursue such corporate opportunity.

The  BGC  Holdings  limited  partnership  agreement  contains  similar  provisions  with  respect  to  us  and/or  Cantor  and 
each of our respective representatives, and the BGC U.S. OpCo and BGC Global OpCo limited partnership agreements, contain 
similar provisions with respect to us and/or BGC Holdings and each of our respective representatives.

This  policy,  however,  could  make  it  easier  for  Cantor  to  compete  with  us.  If  Cantor  competes  with  us,  it  could 

materially harm our business, financial condition, results of operations and prospects.

Agreements between us and Cantor are between related parties, and the terms of these agreements may be less 

favorable to us than those that we could have negotiated with third parties and may subject us to litigation. 

Our relationship with Cantor results in agreements with Cantor that are between related parties. As a result, the prices 
charged  to  us  or  by  us  for  services  provided  under  agreements  with  Cantor  or  sales  or  purchases  of  assets  or  other  similar 
transactions may be higher or lower than prices that may be charged by third parties, and the terms of these agreements may be 
less favorable to us than those that we could have negotiated with third parties. In addition, Cantor has an unlimited right to 

70

internally use market data from us without any cost. Any related-party transactions or arrangements between us and Cantor are 
subject  to  the  prior  approval  by  our  Audit  Committee,  but  generally  do  not  otherwise  require  the  separate  approval  of  our 
stockholders, and if such stockholder approval were required, Cantor may retain sufficient voting power to provide any such 
requisite approval without the affirmative consent of the other stockholders.

These related-party relationships may from time to time subject us to litigation. For example, a derivative action was 
filed  the  Delaware  Chancery  Court  on  October  5,  2018  alleging  the  Berkeley  Point  Acquisition  and  our  investment  in  Real 
Estate  L.P.  (the  “Berkeley  Transaction”)  were  unfair  to  us.  On  August  19,  2022,  the  Court  issued  a  post-trial  memorandum 
opinion in favor of BGC, its directors, and controlling stockholders, ruling that the Berkeley Transaction was entirely fair to 
BGC’s  stockholders  with  respect  to  both  process  and  price.  While  the  Company  believes  any  appeal  of  the  Court's  final 
judgement  would  be  without  merit  and  will  continue  to  defend  the  case  vigorously,  as  in  any  litigated  matter,  the  outcome 
cannot be determined with certainty.

We are controlled by Cantor, which in turn controls its wholly owned subsidiary, CF&Co, which has acted and 
may  continue  to  act  as  our  sales  agent  in  our  CEO  program  from  time  to  time  and  provides  us  with  additional 
investment banking services. In addition, other affiliates of Cantor may provide us with advice and services from time to 
time.

We  are  controlled  by  Cantor,  which  in  turn  controls  its  wholly  owned  subsidiary,  CF&Co,  which  acts  as  our  sales 
agent  in  our  CEO  program  is  entitled  to  receive  fees  in  connection  therewith.  We  may  enter  into  similar  agreements  in  the 
future. 

In addition, Cantor, CF&Co and their affiliates have provided investment banking services to us and our affiliates in 
the  past,  and  may  be  expected  to  do  so  in  the  future,  including  acting  as  our  financial  advisor  in  connection  with  business 
combinations,  dispositions,  or  other  transactions,  including  the  acquisition  of  GFI  and  the  disposition  of  the  Insurance 
brokerage business, and placing or recommending to us various investments, stock loans or cash management vehicles. They 
receive customary fees and commissions for these services in accordance with our investment banking engagement letter with 
CF&Co.  They  may  also  receive  brokerage  and  market  data  and  analytics  products  and  services  from  us  and  our  respective 
affiliates.  From  time  to  time,  CF&Co  may  make  a  market  in  our  notes.  We  also  provide  to  and  receive  from  Cantor  and  its 
affiliates various administrative services.

RISKS RELATED TO OUR CLASS A COMMON STOCK

Purchasers of our Class A common stock, as well as existing stockholders, may experience significant dilution as 
a  result  of  offerings  of  shares  of  our  Class  A  common  stock,  which  may  occur  from  time  to  time  through  our  CEO 
Program or otherwise, as well as other potential forms of employee share monetization, including issuance of shares to 
employees and partners which may be sold through broker transactions. Our management will have broad discretion as 
to the timing and amount of sales of our Class A common stock, as well as the application of the net proceeds of any 
such sales.

We have an effective registration statement on Form S-3 filed on March 8, 2021, with respect to the offer and sale of 
up to 300.0 million shares of BGC Class A common stock from time to time on a delayed or continuous basis pursuant to a 
CEO  program.  As  we  have  done  in  the  past,  on  August  12,  2022  we  entered  into  a  Controlled  Equity  OfferingSM  sales 
agreement with CF&Co to assist us with partner and employee sales of shares of Class A common stock, which may occur from 
time to time, as well as other potential forms of employee share monetization including issuance of shares to employees and 
partners  which  may  be  sold  through  broker  transactions.  As  of  December  31,  2022,  we  have  not  issued  any  shares  of  BGC 
Class A common stock under the current CEO Program.

We have an effective registration statement on Form S-4 filed on September 3, 2010 (the “2010 Form S-4 Registration 
Statement”), with respect to the offer and sale of up to 20 million shares of BGC Class A common stock from time to time in 
connection with business combination transactions, including acquisitions of other businesses, assets, properties or securities. 
As of December 31, 2022, we have issued an aggregate of 17.2 million shares of BGC Class A common stock under the 2010 
Form  S-4  Registration  Statement.  Additionally,  on  September  13,  2019,  we  filed  a  registration  statement  on  Form  S-4  (the 
“2019 Form S-4 Registration Statement”), with respect to the offer and sale of up to 20 million shares of BGC Class A common 
stock from time to time in connection with business combination transactions, including acquisitions of other businesses, assets, 
properties or securities. As of December 31, 2022, we have not issued any shares of BGC Class A common stock under the 
2019 Form S-4 Registration Statement. We also have an effective shelf Registration Statement on Form S-3 pursuant to which 
we  can  offer  and  sell  up  to  10  million  shares  of  BGC  Class  A  common  stock  under  the  BGC  Partners,  Inc.  Dividend 
Reinvestment and Stock Purchase Plan. As of December 31, 2022, we have issued 0.8 million shares of BGC Class A common 
stock under the Dividend Reinvestment and Stock Purchase Plan. We have filed a number of registration statements on Form 

71

S-8 pursuant to which we have registered the shares underlying our Equity Plan. As of December 31, 2022, there were 128.0
million shares remaining for sale under such registration statements.

Because future sales of our Class A common stock may be made in the markets at prevailing market prices or at prices 
related to such prevailing market prices, the prices at which these shares have been sold and may be sold in the future will vary, 
and these variations may be significant. Purchasers of these shares may suffer significant dilution if the price they pay is higher 
than the price paid by other purchasers of shares of our Class A common stock in any future offerings of shares of our Class A 
common stock.

Our management will have broad discretion as to the timing and amount of sales of our Class A common stock in any 
offering,  as  well  as  application  of  the  net  proceeds  of  any  such  sale.  Accordingly,  purchasers  in  any  such  offering  will  be 
relying  on  the  judgment  of  our  management  with  regard  to  the  use  of  such  net  proceeds,  and  purchasers  will  not  have  the 
opportunity, as part of their investment decision, to assess whether the proceeds are being used appropriately. It is possible that 
the proceeds will be invested in a way that does not yield a favorable, or any, return for us and cause the price of our Class A 
common stock to decline.

We  cannot  predict  the  effect,  if  any,  of  future  sales  of  our  Class  A  common  stock,  or  the  availability  of  shares  for 
future sales, on the market price of our Class A common stock. Sales of substantial amounts of our Class A common stock, or 
the perception that such sales could occur, could dilute existing holders of our Class A common stock and may adversely affect 
prevailing market prices for our Class A common stock.

In addition, the sale by us of any shares of our Class A common stock may decrease our existing Class A common 
stockholders’ proportionate ownership interest in us, reduce the amount of cash available per share for dividends payable on 
shares of our Class A common stock and diminish the relative voting strength of each previously outstanding share of our Class 
A common stock.

Because we may use the net proceeds from future offerings of our Class A common stock, for general corporate 
purposes, which, among other things, may include repurchases of shares of our Class A common stock and purchases of 
BGC  Holdings  units  or  other  equity  interests  in  us  or  in  our  subsidiaries  from  Cantor,  our  executive  officers,  other 
employees, partners, and others, and/or to replace cash used to effect such repurchases and purchases, investors should 
be aware that such net proceeds may not be available for other corporate purposes, and that, depending upon the timing 
and prices of such repurchases of shares and purchases of units and of the sales of our shares in future offerings and the 
liquidity and depth of our market, we may sell a greater aggregate number of shares, at a lower average price per share 
in  future  offerings  than  the  number  of  shares  or  units  repurchased  or  purchased,  thereby  increasing  the  aggregate 
number of shares and units outstanding and potentially decreasing our EPS.

In the event that we sell our Class A common stock, we may use the net proceeds from any future offering, for general 
corporate purposes, which among other things, may include repurchases of shares of our Class A common stock and purchases 
of  BGC  Holdings  units  or  other  equity  interests  in  us  or  in  our  subsidiaries,  from  Cantor,  our  executive  officers,  other 
employees, partners, and others, and/or to replace cash used to effect such repurchases and purchases. From January 1, 2022 to 
December 31, 2022, we repurchased an aggregate of 27.1 million shares of our Class A common stock at an aggregate purchase 
price  of  approximately  $103.9  million,  with  a  weighted-average  repurchase  price  of  $3.84  per  share.  During  that  period,  we 
redeemed for cash an aggregate of 1.3 million limited partnership units at a weighted-average price of $3.87 per unit and an 
aggregate of 0.1 million founding/working partner units at a weighted-average price of $3.41 per unit. In the future, we may 
continue to repurchase shares of our Class A common stock and purchase partnership units from Cantor, our executive officers, 
other employees, partners, and others, and these repurchases and purchases may be significant.

While we believe that we can successfully manage our issuance and repurchase strategy, and that our share price may 
in fact increase as we increase the amount of cash available for dividends and share repurchases and unit purchases by paying 
an  increasing  portion  of  the  compensation  of  our  employees  in  the  form  of  partnership  units  and  restricted  stock,  gradually 
lowering  our  compensation  expenses  for  purposes  of  Adjusted  Earnings,  and  lowering  our  long-term  effective  tax  rate  for 
Adjusted  Earnings,  there  can  be  no  assurance  that  our  strategy  will  be  successful  or  that  we  can  achieve  any  or  all  of  such 
objectives.

ITEM 1B. 

UNRESOLVED STAFF COMMENTS

Not Applicable

ITEM 2. 

PROPERTIES

We have offices in the United States, Canada, Europe, United Kingdom, Latin America, Asia, Africa and the Middle 
East.  Our  principal  executive  offices  are  located  at  499  Park  Avenue,  New  York,  New  York.  We  also  occupy  space  at  199 

72

Water Street, New York, New York and space at 55 Water Street, New York, New York. Under the Administrative Services 
Agreement with Cantor, we are obligated to Cantor for our pro rata portion (based on square footage used) of rental expense 
during the terms of the leases for such spaces. 

Our largest presence outside of the New York metropolitan area is in London, located at Five Churchill Place, London, 

E14 5RD.

We currently occupy concurrent computing centers in Weehawken, New Jersey, Secaucus, New Jersey and Trumbull, 
Connecticut. In addition, we occupy three data centers in the United Kingdom located in Canary Wharf, Romford and City of 
London, respectively. Our U.S. operations also have office space in Iselin, New Jersey, Palm Beach Gardens, Florida, Garden 
City, New York, Sugar Land, Texas, Louisville, Kentucky and Chicago, Illinois.

ITEM 3. 

LEGAL PROCEEDINGS

See  Note  19—“Commitments,  Contingencies  and  Guarantees”  to  the  Company’s  consolidated  financial  statements 
included in Part II, Item 8 of this Annual Report on Form 10-K and the section under the heading “Derivative Suit” included in 
Part I, Item 7 of this Annual Report on Form 10-K, Management’s Discussion and Analysis of Financial Condition and Results 
of Operations for a description of our legal proceedings, which are incorporated by reference herein.

ITEM 4. 

MINE SAFETY DISCLOSURES

Not Applicable.

73

PART II

ITEM 5. 

MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER 
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our Class A common stock is traded on the NASDAQ Global Select Market under the symbol “BGCP.” There is no 

public trading market for our Class B common stock, which is held by Cantor and CFGM.

As of February 27, 2023, there were 886 holders of record of our Class A common stock and two holders of record of 

our Class B common stock.

Capital Deployment Priorities, Dividend Policy and Repurchase and Redemption Program

BGC’s  current  capital  allocation  priorities  are  to  use  our  liquidity  to  return  capital  to  stockholders  and  to  continue 
investing  in  its  high  growth  Fenics  businesses.  BGC  plans  to  prioritize  share  and  unit  repurchases  over  dividends  and 
distributions. We have repurchased or redeemed 28.5 million shares or units during the year ended December 31, 2022.

Traditionally,  our  dividend  policy  provides  that  we  expect  to  pay  a  quarterly  cash  dividend  to  our  common 
stockholders based on our post-tax Adjusted Earnings per fully diluted share. Please see below for a detailed definition of post-
tax Adjusted Earnings per fully diluted share. 

Any  dividends,  if  and  when  declared  by  our  Board,  will  be  paid  on  a  quarterly  basis.  The  dividend  to  our  common 
stockholders is expected to be calculated based on a number of factors, including post-tax Adjusted Earnings allocated to us and 
generated over the fiscal quarter ending prior to the record date for the dividend. No assurance can be made, however, that a 
dividend will be paid each quarter. The declaration, payment, timing, and amount of any future dividends payable by us will be 
at  the  sole  discretion  of  our  Board.  With  respect  to  any  distributions  which  are  declared,  amounts  paid  to  or  on  behalf  of 
partners will at least cover their related tax payments. Whether any given post-tax amount is equivalent to the amount received 
by a stockholder also on an after-tax basis depends upon stockholders’ and partners’ domiciles and tax status.

We  are  a  holding  company,  with  no  direct  operations,  and  therefore  we  are  able  to  pay  dividends  only  from  our 
available cash on hand and funds received from distributions from BGC U.S. OpCo and BGC Global OpCo. Our ability to pay 
dividends may also be limited by regulatory considerations as well as by covenants contained in financing or other agreements. 
In addition, under Delaware law, dividends may be payable only out of surplus, which is our net assets minus our capital (as 
defined  under  Delaware  law),  or,  if  we  have  no  surplus,  out  of  our  net  profits  for  the  fiscal  year  in  which  the  dividend  is 
declared and/or the preceding fiscal year. Accordingly, any unanticipated accounting, tax, regulatory or other charges against 
net  income  may  adversely  affect  our  ability  to  declare  and  pay  dividends.  While  we  intend  to  declare  and  pay  dividends 
quarterly, there can be no assurance that our Board will declare dividends at all or on a regular basis or that the amount of our 
dividends will not change.

Stock and Unit Repurchase and Redemption Program and 2022 Activity

Our  Board  of  Directors  and  our  Audit  Committee  have  authorized  repurchases  of  our  Class  A  common  stock  and 
redemptions of BGC Holdings limited partnership interests or other equity interests in our subsidiaries, including from Cantor, 
our executive officers, other employees, partners and others, including Cantor employees and partners. On August 3, 2021, our 
Board  of  Directors  and  Audit  Committee  increased  the  authorized  repurchases  of  stock  or  units,  including  from  Cantor 
employees and partners, to $400.0 million. Again, on November 4, 2022, the Board and Audit Committee increased the BGC 
Partners share repurchase and unit redemption authorization to $400.0 million, which may include purchases from Cantor, its 
partners or employees or other affiliated persons or entities. As of December 31, 2022 we had approximately $376.4 million 
remaining  under  this  authorization  and  may  continue  to  actively  make  repurchases  or  purchases,  or  cease  to  make  such 
repurchases or purchases, from time to time. We have not purchased shares in the open market in 2023 and have redeemed an 
immaterial amount of units in the normal course of business.

During the year ended December 31, 2022, we repurchased 27.1 million shares of our Class A common stock at an 
aggregate price of $103.9 million for a weighted-average price of $3.84 per share. During the year ended December 31, 2022, 
we  redeemed  1.4  million  limited  partnership  interests  at  an  aggregate  price  of  $5.2  million  for  a  weighted-average  price  of 
$3.84 per unit. 

During the fourth quarter of 2022, we repurchased 5.9 million shares of our Class A common stock at an aggregate 
price  of  $24.6  million  for  a  weighted-average  price  of  $4.14  per  share.  During  the  fourth  quarter  of  2022,  we  redeemed  99 
thousand limited partnership interests at an aggregate price of $383 thousand for a weighted-average price of $3.88 per unit.

74

Performance Graph 

On  November  30,  2018,  all  the  shares  of  Newmark  Group,  Inc.  (Nasdaq:  NMRK)  (“Newmark”)  held  by  BGC 
Partners,  Inc.  (Nasdaq:  BGCP)  (“BGC  Partners”  or  “BGC”  or  the  “Company”)  were  distributed  to  stockholders  of  the 
Company  (the  “Spin-Off”  or  “Distribution”).  The  Spin-Off  included  the  shares  of  Newmark  Class  A  and  Class  B  common 
stock owned by BGC, as well as the shares of Newmark common stock into which the limited partnership units of Newmark 
Holdings,  L.P.  and  Newmark  Partners,  L.P.  owned  by  BGC  were  exchanged  prior  to  and  in  connection  with  the  Spin-Off. 
Based on the number of shares of BGC common stock outstanding on the Record Date, BGC’s stockholders as of the Record 
Date received 0.463895 of a share of Newmark Class A common stock for each share of BGC Class A common stock held as of 
the Record Date, and 0.463895 of a share of Newmark Class B common stock for each share of BGC Class B common stock 
held as of the Record Date (the “Distribution Ratio”). No fractional shares of Newmark common stock were distributed in the 
Spin-Off.  Instead,  BGC  stockholders  received  cash  in  lieu  of  any  fraction  of  a  share  of  Newmark  common  stock  that  they 
otherwise would have received in the Spin-Off. For more information, see the press release titled “BGC Partners Announces 
Completion of Spin-Off of Newmark” dated November 30, 2018, and the related filing on Form 8-K filed before market open 
on December 6, 2018.

Following the Spin-Off, all historical prices for BGCP were restated using an adjustment factor based on the closing 
prices of BGCP and NMRK on November 18, 2018, with NMRK being the when-issued market for the additional shares of 
Newmark Group, Inc. Class A common stock that traded on Nasdaq from November 20, 2018 until November 30, 2018. This 
formula for calculating the adjustment factor was 1 – (NMRK Price on November 30, 2018 times the final Distribution Ratio)/
(BGCP closing price on November 30, 2018). All historical BGCP prices have been multiplied by this factor to determine their 
adjusted  historical  prices  as  if  BGC  had  owned  only  its  former  Financial  Services  segment  during  the  entire  5-year  period 
covered by the BGCP performance graph.

The  performance  graph  below  shows  a  comparison  of  the  cumulative  total  stockholder  return,  on  a  net  dividend 
reinvestment basis (other than the dividend that effected the Spin-Off), of $100 invested in shares of the Company (identified as 
“BGC Partners, Inc.”), and the effects of the restatement of historical prices on December 31, 2017, measured on December 31, 
2018,  December  31,  2019,  December  31,  2020,  December  31,  2021,  and  December  31,  2022.  The  Peer  Group  consists  of 
Compagnie Financière Tradition SA and TP ICAP plc. The returns of the Peer Group have been weighted at the beginning of 
the period according to their U.S. dollar stock market capitalizations for purposes of arriving at a Peer Group average.

75

Total  returns  are  shown  on  a  “net  dividend”  basis,  which  reflects  tax  effects  on  dividend  reinvestments  from 

companies operating under certain U.K. and European tax jurisdictions, according to local tax laws.

Note: The above chart reflects $100 invested on 12/31/17 in stock or index, including reinvestment of dividends.

An alternate scenario that is not depicted in the above chart represents a hypothetical situation in which BGC Partners, 
Inc.  stockholders  re-invested  the  dividends  they  received  from  both  companies  (the  “Alternate  Scenario”).  In  the  Alternate 
Scenario, the total BGC Partners, Inc. return on $100 would have resulted in approximately $59 from 12/31/2017 - 12/31/2022.

In addition to the foregoing five-year returns, the 10-year total returns on $100 calculated using the same methodology 

described above are as follows:

•

•

•

The 10-year total return for BGC Partners, Inc. from 12/31/2012 through 12/31/2022 would have resulted in
approximately $296.

The  10-year  total  return  for  BGC  Partners,  Inc.  under  the  Alternate  Scenario  would  have  resulted  in
approximately $360 from 12/31/2012 through 12/31/2022.

In comparison, the 10-year total return for $100 invested in the Peer Group, Russell 2000 Index, and S&P 500
Index from 12/31/2012 through 12/31/2022 would have resulted in approximately in $135, $237, and $327,
respectively.

Note: Peer group indices use beginning of period market capitalization weighting. The above graph was prepared by 
Zacks Investment Research, Inc. and used with its permission. All rights reserved. Copyright 1980-2023. Index data provided 
by  Copyright  Standard  and  Poor's  Inc.  and  Copyright  Russell  Investments.  Used  with  permission.  All  rights  reserved.  The 
Alternate Scenario above was calculated by S&P Global.

Certain Definitions 

We  use  non-GAAP  financial  measures  that  differ  from  the  most  directly  comparable  measures  calculated  and 
presented in accordance with U.S. GAAP. Non-GAAP financial measures used by the Company include “Adjusted Earnings 

76

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURNAmong  BGC Partners, Inc., the S&P 500 Index,Russell 2000 Index, and Peer GroupBGC Partners, Inc.Russell 2000S&P 500Peer Group12/31/1712/31/1812/31/1912/31/2012/31/2112/31/22$0$50$100$150$200$250before noncontrolling interests and taxes”, which is used interchangeably with “pre-tax Adjusted Earnings”; “Post-tax Adjusted 
Earnings  to  fully  diluted  shareholders”,  which  is  used  interchangeably  with  “post-tax  Adjusted  Earnings”;  “Adjusted 
EBITDA”; “Liquidity”, and "Constant Currency". The definitions of these terms are below.

Adjusted Earnings Defined

BGC uses non-GAAP financial measures, including “Adjusted Earnings before noncontrolling interests and taxes” and 
“Post-tax  Adjusted  Earnings  to  fully  diluted  shareholders”,  which  are  supplemental  measures  of  operating  results  used  by 
management  to  evaluate  the  financial  performance  of  the  Company  and  its  consolidated  subsidiaries.  BGC  believes  that 
Adjusted Earnings best reflect the operating earnings generated by the Company on a consolidated basis and are the earnings 
which management considers when managing its business.

As  compared  with  “Income  (loss)  from  operations  before  income  taxes”  and  “Net  income  (loss)  for  fully  diluted 
shares”, both prepared in accordance with GAAP, Adjusted Earnings calculations primarily exclude certain non-cash items and 
other expenses that generally do not involve the receipt or outlay of cash by the Company and/or which do not dilute existing 
stockholders. In addition, Adjusted Earnings calculations exclude certain gains and charges that management believes do not 
best reflect the ordinary results of BGC. Adjusted Earnings is calculated by taking the most comparable GAAP measures and 
adjusting for certain items with respect to compensation expenses, non-compensation expenses, and other income, as discussed 
below.

Calculations of Compensation Adjustments for Adjusted Earnings and Adjusted EBITDA

Treatment of Equity-Based Compensation Line Item for Adjusted Earnings and Adjusted EBITDA

The Company’s Adjusted Earnings and Adjusted EBITDA measures exclude all GAAP charges included in the line 
item  “Equity-based  compensation  and  allocations  of  net  income  to  limited  partnership  units  and  FPUs”  (or  “equity-based 
compensation” for purposes of defining the Company’s non-GAAP results) as recorded on the Company’s GAAP Consolidated 
Statements  of  Operations  and  GAAP  Consolidated  Statements  of  Cash  Flows.  These  GAAP  equity-based  compensation 
charges reflect the following items:

•

•

•

•

•

•

Charges  with  respect  to  grants  of  exchangeability,  which  reflect  the  right  of  holders  of  limited  partnership
units with no capital accounts, such as LPUs and PSUs, to exchange these units into shares of common stock,
or  into  partnership  units  with  capital  accounts,  such  as  HDUs,  as  well  as  cash  paid  with  respect  to  taxes
withheld or expected to be owed by the unit holder upon such exchange. The withholding taxes related to the
exchange of certain non-exchangeable units without a capital account into either common shares or units with
a capital account may be funded by the redemption of preferred units such as PPSUs.

Charges with respect to preferred units. Any preferred units would not be included in the Company’s fully
diluted share count because they cannot be made exchangeable into shares of common stock and are entitled
only  to  a  fixed  distribution.  Preferred  units  are  granted  in  connection  with  the  grant  of  certain  limited
partnership units that may be granted exchangeability or redeemed in connection with the grant of shares of
common stock at ratios designed to cover any withholding taxes expected to be paid. This is an alternative to
the common practice among public companies of issuing the gross amount of shares to employees, subject to
cashless withholding of shares, to pay applicable withholding taxes.

GAAP equity-based compensation charges with respect to the grant of an offsetting amount of common stock
or  partnership  units  with  capital  accounts  in  connection  with  the  redemption  of  non-exchangeable  units,
including PSUs and LPUs.

Charges related to amortization of RSUs and limited partnership units.

Charges  related  to  grants  of  equity  awards,  including  common  stock  or  partnership  units  with  capital
accounts.

Allocations  of  net  income  to  limited  partnership  units  and  FPUs.  Such  allocations  represent  the  pro-rata
portion of post-tax GAAP earnings available to such unit holders.

The amounts of certain quarterly equity-based compensation charges are based upon the Company’s estimate of such 
expected charges during the annual period, as described further below under “Methodology for Calculating Adjusted Earnings 
Taxes.”

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Virtually  all  of  BGC’s  key  executives  and  producers  have  equity  or  partnership  stakes  in  the  Company  and  its 
subsidiaries  and  generally  receive  deferred  equity  or  limited  partnership  units  as  part  of  their  compensation.  A  significant 
percentage  of  BGC’s  fully  diluted  shares  are  owned  by  its  executives,  partners  and  employees.  The  Company  issues  limited 
partnership  units  as  well  as  other  forms  of  equity-based  compensation,  including  grants  of  exchangeability  into  shares  of 
common  stock,  to  provide  liquidity  to  its  employees,  to  align  the  interests  of  its  employees  and  management  with  those  of 
common stockholders, to help motivate and retain key employees, and to encourage a collaborative culture that drives cross-
selling and revenue growth.

All  share  equivalents  that  are  part  of  the  Company’s  equity-based  compensation  program,  including  REUs,  PSUs, 
LPUs, HDUs, and other units that may be made exchangeable into common stock, as well as RSUs (which are recorded using 
the  treasury  stock  method),  are  included  in  the  fully  diluted  share  count  when  issued  or  at  the  beginning  of  the  subsequent 
quarter after the date of grant. Generally, limited partnership units other than preferred units are expected to be paid a pro-rata 
distribution based on BGC’s calculation of Adjusted Earnings per fully diluted share. However, out of an abundance of caution 
and  in  order  to  strengthen  the  Company’s  balance  sheet  due  the  uncertain  macroeconomic  conditions  with  respect  to  the 
COVID-19 pandemic, BGC Holdings, L.P. has reduced its distributions of income from the operations of BGC’s businesses to 
its partners.

Compensation charges are also adjusted for certain other cash and non-cash items.

Certain Other Compensation-Related Adjustments for Adjusted Earnings

BGC also excludes various other GAAP items that management views as not reflective of the Company’s underlying 
performance in a given period from its calculation of Adjusted Earnings. These may include compensation-related items with 
respect to cost-saving initiatives, such as severance charges incurred in connection with headcount reductions as part of broad 
restructuring and/or cost savings plans.

Calculation of Non-Compensation Adjustments for Adjusted Earnings

Adjusted Earnings calculations may also exclude items such as:

•

•

•

•

•

Non-cash GAAP charges related to the amortization of intangibles with respect to acquisitions;

Acquisition related costs;

Certain rent charges;

Non-cash GAAP asset impairment charges; and

Various  other  GAAP  items  that  management  views  as  not  reflective  of  the  Company’s  underlying
performance  in  a  given  period,  including  non-compensation-related  charges  incurred  as  part  of  broad
restructuring and/or cost savings plans. Such GAAP items may include charges for exiting leases and/or other
long-term contracts as part of cost-saving initiatives, as well as non-cash impairment charges related to assets,
goodwill and/or intangibles created from acquisitions.

Calculation of Adjustments for Other (income) losses for Adjusted Earnings

Adjusted Earnings calculations also exclude certain other non-cash, non-dilutive, and/or non-economic items, which 

may, in some periods, include:

•

•

•

•

Gains or losses on divestitures;

Fair value adjustment of investments;

Certain  other  GAAP  items,  including  gains  or  losses  related  to  BGC's  investments  accounted  for  under  the
equity method; and

Any unusual, one-time, non-ordinary, or non-recurring gains or losses.

Methodology for Calculating Adjusted Earnings Taxes

Although Adjusted Earnings are calculated on a pre-tax basis, BGC also reports post-tax Adjusted Earnings to fully 
diluted  shareholders.  The  Company  defines  post-tax  Adjusted  Earnings  to  fully  diluted  shareholders  as  pre-tax  Adjusted 

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Earnings reduced by the non-GAAP tax provision described below and net income (loss) attributable to noncontrolling interest 
for Adjusted Earnings. 

The Company calculates its tax provision for post-tax Adjusted Earnings using an annual estimate similar to how it 
accounts for its income tax provision under GAAP. To calculate the quarterly tax provision under GAAP, BGC estimates its 
full fiscal year GAAP income (loss) from operations before income taxes and noncontrolling interests in subsidiaries and the 
expected inclusions and deductions for income tax purposes, including expected equity-based compensation during the annual 
period.  The  resulting  annualized  tax  rate  is  applied  to  BGC’s  quarterly  GAAP  income  (loss)  from  operations  before  income 
taxes and noncontrolling interests in subsidiaries. At the end of the annual period, the Company updates its estimate to reflect 
the actual tax amounts owed for the period.

To determine the non-GAAP tax provision, BGC first adjusts pre-tax Adjusted Earnings by recognizing any, and only, 
amounts  for  which  a  tax  deduction  applies  under  applicable  law.  The  amounts  include  charges  with  respect  to  equity-based 
compensation;  certain  charges  related  to  employee  loan  forgiveness;  certain  net  operating  loss  carryforwards  when  taken  for 
statutory  purposes;  and  certain  charges  related  to  tax  goodwill  amortization.  These  adjustments  may  also  reflect  timing  and 
measurement differences, including treatment of employee loans; changes in the value of units between the dates of grants of 
exchangeability and the date of actual unit exchange; variations in the value of certain deferred tax assets; and liabilities and the 
different timing of permitted deductions for tax under GAAP and statutory tax requirements.

After application of these adjustments, the result is the Company’s taxable income for its pre-tax Adjusted Earnings, to 
which BGC then applies the statutory tax rates to determine its non-GAAP tax provision. BGC views the effective tax rate on 
pre-tax Adjusted Earnings as equal to the amount of its non-GAAP tax provision divided by the amount of pre-tax Adjusted 
Earnings.

Generally, the most significant factor affecting this non-GAAP tax provision is the amount of charges relating to equity-
based compensation. Because the charges relating to equity-based compensation are deductible in accordance with applicable 
tax  laws,  increases  in  such  charges  have  the  effect  of  lowering  the  Company’s  non-GAAP  effective  tax  rate  and  thereby 
increasing its post-tax Adjusted Earnings.

BGC incurs income tax expenses based on the location, legal structure and jurisdictional taxing authorities of each of its 
subsidiaries. Certain of the Company’s entities are taxed as U.S. partnerships and are subject to the UBT in New York City. 
Any U.S. federal and state income tax liability or benefit related to the partnership income or loss, with the exception of UBT, 
rests with the unit holders rather than with the partnership entity. The Company’s consolidated financial statements include U.S. 
federal, state, and local income taxes on the Company’s allocable share of the U.S. results of operations. Outside of the U.S., 
BGC is expected to operate principally through subsidiary corporations subject to local income taxes. For these reasons, taxes 
for Adjusted Earnings are expected to be presented to show the tax provision the consolidated Company would expect to pay if 
100% of earnings were taxed at global corporate rates.

Calculations of Pre- and Post-Tax Adjusted Earnings per Share

BGC’s pre- and post-tax Adjusted Earnings per share calculations assume either that:

•

•

The  fully  diluted  share  count  includes  the  shares  related  to  any  dilutive  instruments,  but  excludes  the
associated expense, net of tax, when the impact would be dilutive; or

The  fully  diluted  share  count  excludes  the  shares  related  to  these  instruments,  but  includes  the  associated
expense, net of tax, when the impact would be anti-dilutive.

The share count for Adjusted Earnings excludes certain shares and share equivalents expected to be issued in future 
periods but not yet eligible to receive dividends and/or distributions. Each quarter, the dividend payable to BGC’s stockholders, 
if any, is expected to be determined by the Company’s Board of Directors with reference to a number of factors, including post-
tax Adjusted Earnings per share. BGC may also pay a pro-rata distribution of net income to limited partnership units, as well as 
to  Cantor  for  its  noncontrolling  interest.  The  amount  of  this  net  income,  and  therefore  of  these  payments  per  unit,  would  be 
determined using the above definition of Adjusted Earnings per share on a pre-tax basis.

The  declaration,  payment,  timing,  and  amount  of  any  future  dividends  payable  by  the  Company  will  be  at  the 
discretion of its Board of Directors using the fully diluted share count. For more information on any share count adjustments, 
see the table titled “Fully Diluted Weighted-Average Share Count under GAAP and for Adjusted Earnings” in the Company’s 
most recent financial results press release.

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Management Rationale for Using Adjusted Earnings

BGC’s  calculation  of  Adjusted  Earnings  excludes  the  items  discussed  above  because  they  are  either  non-cash  in 
nature,  because  the  anticipated  benefits  from  the  expenditures  are  not  expected  to  be  fully  realized  until  future  periods,  or 
because  the  Company  views  results  excluding  these  items  as  a  better  reflection  of  the  underlying  performance  of  BGC’s 
ongoing  operations.  Management  uses  Adjusted  Earnings  in  part  to  help  it  evaluate,  among  other  things,  the  overall 
performance  of  the  Company’s  business,  to  make  decisions  with  respect  to  the  Company’s  operations,  and  to  determine  the 
amount  of  dividends  payable  to  common  stockholders  and  distributions  payable  to  holders  of  limited  partnership  units. 
Dividends payable to common stockholders and distributions payable to holders of limited partnership units are included within 
“Dividends  to  stockholders”  and  “Earnings  distributions  to  limited  partnership  interests  and  noncontrolling  interests,” 
respectively, in our Consolidated Statements of Cash Flows.

The term “Adjusted Earnings” should not be considered in isolation or as an alternative to GAAP net income (loss). 
The Company views Adjusted Earnings as a metric that is not indicative of liquidity, or the cash available to fund its operations, 
but  rather  as  a  performance  measure.  Pre-  and  post-tax  Adjusted  Earnings,  as  well  as  related  measures,  are  not  intended  to 
replace  the  Company’s  presentation  of  its  GAAP  financial  results.  However,  management  believes  that  these  measures  help 
provide  investors  with  a  clearer  understanding  of  BGC’s  financial  performance  and  offer  useful  information  to  both 
management  and  investors  regarding  certain  financial  and  business  trends  related  to  the  Company’s  financial  condition  and 
results of operations. Management believes that the GAAP and Adjusted Earnings measures of financial performance should be 
considered together.

For  more  information  regarding  Adjusted  Earnings,  see  the  section  in  the  Company’s  most  recent  financial  results 
press release titled “Reconciliation of GAAP Income (Loss) from Operations before Income Taxes to Adjusted Earnings and 
GAAP Fully Diluted EPS to Post-Tax Adjusted EPS”, including the related footnotes, for details about how BGC’s non-GAAP 
results are reconciled to those under GAAP.

Adjusted EBITDA Defined

BGC also provides an additional non-GAAP financial performance measure, “Adjusted EBITDA”, which it defines as 

GAAP “Net income (loss) available to common stockholders”, adjusted to add back the following items:

•

•

•

•

•

•

•

•

Provision (benefit) for income taxes;

Net income (loss) attributable to noncontrolling interest in subsidiaries;

Interest expense;

Fixed asset depreciation and intangible asset amortization;

Equity-based compensation and allocations of net income to limited partnership units and FPUs;

Impairment of long-lived assets;

(Gains) losses on equity method investments; and

Certain other non-cash GAAP items, such as non-cash charges of amortized rents incurred by the Company
for its new U.K. based headquarters.

The  Company’s  management  believes  that  its  Adjusted  EBITDA  measure  is  useful  in  evaluating  BGC’s  operating 
performance,  because  the  calculation  of  this  measure  generally  eliminates  the  effects  of  financing  and  income  taxes  and  the 
accounting effects of capital spending and acquisitions, which would include impairment charges of goodwill and intangibles 
created from acquisitions. Such items may vary for different companies for reasons unrelated to overall operating performance. 
As  a  result,  the  Company’s  management  uses  this  measure  to  evaluate  operating  performance  and  for  other  discretionary 
purposes. BGC believes that Adjusted EBITDA is useful to investors to assist them in getting a more complete picture of the 
Company’s financial results and operations.

Since BGC’s Adjusted EBITDA is not a recognized measurement under GAAP, investors should use this measure in 
addition  to  GAAP  measures  of  net  income  when  analyzing  BGC’s  operating  performance.  Because  not  all  companies  use 
identical  EBITDA  calculations,  the  Company’s  presentation  of  Adjusted  EBITDA  may  not  be  comparable  to  similarly  titled 
measures of other companies. Furthermore, Adjusted EBITDA is not intended to be a measure of free cash flow or GAAP cash 
flow from operations because the Company’s Adjusted EBITDA does not consider certain cash requirements, such as tax and 
debt service payments.

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For  more  information  regarding  Adjusted  EBITDA,  see  the  section  in  the  Company’s  most  recent  financial  results 
press  release  titled  “Reconciliation  of  GAAP  Net  Income  (Loss)  Available  to  Common  Stockholders  to  Adjusted  EBITDA”, 
including the footnotes to the same, for details about how BGC’s non-GAAP results are reconciled to those under GAAP.

Timing of Outlook for Certain GAAP and Non-GAAP Items

BGC anticipates providing forward-looking guidance for GAAP revenues and for certain non-GAAP measures from 
time to time. However, the Company does not anticipate providing an outlook for other GAAP results. This is because certain 
GAAP  items,  which  are  excluded  from  Adjusted  Earnings  and/or  Adjusted  EBITDA,  are  difficult  to  forecast  with  precision 
before  the  end  of  each  period.  The  Company  therefore  believes  that  it  is  not  possible  for  it  to  have  the  required  information 
necessary  to  forecast  GAAP  results  or  to  quantitatively  reconcile  GAAP  forecasts  to  non-GAAP  forecasts  with  sufficient 
precision without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the 
unavailable information. The relevant items that are difficult to predict on a quarterly and/or annual basis with precision and 
may materially impact the Company’s GAAP results include, but are not limited, to the following:

•

•

•

•

•

Certain  equity-based  compensation  charges  that  may  be  determined  at  the  discretion  of  management
throughout and up to the period-end;

Unusual, one-time, non-ordinary, or non-recurring items;

The  impact  of  gains  or  losses  on  certain  marketable  securities,  as  well  as  any  gains  or  losses  related  to
associated  mark-to-market  movements  and/or  hedging.  These  items  are  calculated  using  period-end  closing
prices;

Non-cash asset impairment charges, which are calculated and analyzed based on the period-end values of the
underlying assets. These amounts may not be known until after period-end; and

Acquisitions, dispositions and/or resolutions of litigation, which are fluid and unpredictable in nature.

Liquidity Defined

BGC may also use a non-GAAP measure called “liquidity”. The Company considers liquidity to be comprised of the 
sum of Cash and cash equivalents, Reverse repurchase agreements (if any), and Financial instruments owned, at fair value, less 
securities lent out in Securities loaned transactions and Repurchase agreements (if any). The Company considers liquidity to be 
an important metric for determining the amount of cash that is available or that could be readily available to the Company on 
short notice.

For more information regarding Liquidity, see the section in the Company’s most recent financial results press release 
titled “Liquidity Analysis”, including any footnotes to the same, for details about how BGC’s non-GAAP results are reconciled 
to those under GAAP.

Constant Currency Defined

BGC generates a significant amount of its revenues in non-U.S. dollar denominated currencies, particularly in the euro 
and  pound  sterling.  In  order  to  present  a  better  comparison  of  the  Company's  revenues  during  the  period,  which  exhibited 
highly  volatile  foreign  exchange  movements,  BGC  provides  revenues  year-over-year  comparisons  on  a  "Constant  Currency" 
basis. BGC uses a Constant Currency financial metric to provide a better comparison of the Company's underlying operating 
performance  by  eliminating  the  impacts  of  foreign  currency  fluctuations  between  comparative  periods.  Since  BGC's 
consolidated financial statements are presented in U.S. dollars, fluctuations in non-U.S. dollar denominated currencies have an 
impact on the Company's GAAP results. The Company's Constant Currency metric, which is a non-GAAP financial measure, 
assumes the foreign exchange rates used to determine the Company's comparative prior period revenues, apply to the current 
period revenues. Constant Currency revenue percentage change is calculated by determining the change in current quarter non-
GAAP  Constant  Currency  revenues  over  prior  period  revenues.  Non-GAAP  Constant  Currency  revenues  are  total  revenues 
excluding the effect of foreign exchange rate movements and are calculated by remeasuring and/or translating current quarter 
revenues  using  prior  period  exchange  rates.  BGC  presents  certain  non-GAAP  Constant  Currency  percentage  changes  in 
Constant Currency revenues as a supplementary measure because it facilitates the comparison of the Company's core operating 
results.  This  information  should  be  considered  in  addition  to,  and  not  as  a  substitute  for,  results  reported  in  accordance  with 
GAAP.

ITEM 6. 

[RESERVED]

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ITEM 7. 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS 
OF OPERATIONS

The following discussion of BGC Partners’ financial condition and results of operations should be read together with 
BGC Partners' Consolidated Financial Statements and notes to those statements, as well as the cautionary statements relating to 
forward-looking  statements  included  in  this  report.  When  used  herein,  the  terms  “BGC  Partners,”  “BGC,”  the  “Company,” 
“we,” “us” and “our” refer to BGC Partners, Inc., including consolidated subsidiaries.

The  objective  of  this  Management’s  Discussion  and  Analysis  is  to  allow  investors  to  view  the  Company  from 
management’s  perspective,  considering  items  that  have  had  and  could  have  a  material  impact  on  future  operations.  This 
discussion  summarizes  the  significant  factors  affecting  our  results  of  operations  and  financial  condition  as  of  and  during  the 
years ended December 31, 2022, 2021, and 2020. This discussion is provided to increase the understanding of, and should be 
read in conjunction with, our Consolidated Financial Statements and the notes thereto included elsewhere in this report.

FORWARD-LOOKING CAUTIONARY STATEMENTS

Our  actual  results  and  the  outcome  and  timing  of  certain  events  may  differ  significantly  from  the  expectations 
discussed in the forward-looking statements. Factors that might cause or contribute to such a discrepancy include, but are not 
limited to, the factors set forth below:

•

•

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•

•

•

•

macroeconomic  and  other  challenges  and  uncertainties  resulting  from  the  COVID-19  pandemic,  Russia's
Invasion  of  Ukraine,  rising  global  interest  rates,  inflation  and  the  Federal  Reserve's  responses  thereto,
including  increasing  interest  rates,  the  strengthening  U.S.  dollar,  changes  in  the  U.S.  and  global  economies
and  financial  markets,  including  economic  activity,  employment  levels,  supply  chain  issues  and  market
liquidity, and increasing energy costs, as well as the various actions taken in response to the challenges and
uncertainties by governments, central banks and others, including us and consumer and corporate clients and
customers;

the  impact  of  the  COVID-19  pandemic,  including  possible  successive  waves  or  variants  of  the  virus,  the
emergence  of  new  viruses,  the  continued  distribution  of  effective  vaccines  and  governmental  and  public
reactions thereto, the combined impact of the flu and other seasonal illnesses, and the impact of a return to
office for our employees on our operations;

market  conditions,  including  rising  interest  rates,  the  strengthening  U.S.  dollar,  trading  volume,  currency
fluctuations and volatility in the demand for the products and services we provide, resulting from the effects
of COVID-19 or otherwise, possible disruptions in trading, potential deterioration of equity and debt capital
markets and cryptocurrency markets, the impact of significant changes in interest rates generally and on our
ability to access the capital markets as needed or on reasonable terms and conditions;

pricing, commissions and fees, and market position with respect to any of our products and services and those
of our competitors;

the effect of industry concentration and reorganization, reduction of customers, and consolidation;

liquidity, regulatory, cash and clearing capital requirements and the impact of credit market events, including
the  impact  of  COVID-19,  rising  interest  rates,  the  strengthening  U.S.  dollar,  and  market  uncertainty,  and
political  events  and  conflicts  and  actions  taken  by  governments  and  businesses  in  response  thereto  on  the
credit markets and interest rates;

our relationships and transactions with Cantor and its affiliates, including CF&Co, and CCRE, our structure,
including BGC Holdings, which is owned by us, Cantor, our employee partners and other partners, and the
BGC  OpCos,  which  are  owned  jointly  by  us  and  BGC  Holdings,  the  timing  and  impact  of  any  possible
changes to our structure, including the Corporate Conversion, any related transactions, conflicts of interest or
litigation,  including  with  respect  to  executive  compensation  matters,  any  impact  of  Cantor’s  results  on  our
credit ratings and associated outlooks, any loans to or from us or Cantor, BGC Holdings, or the BGC OpCos,
including the balances and interest rates thereof from time to time and any convertible or equity features of
any such loans, CF&Co’s acting as our sales agent or underwriter under our CEO Program or other offerings,
Cantor’s holdings of the Company’s Debt Securities, CF&Co’s acting as a market maker in the Company’s
Debt  Securities,  CF&Co’s  acting  as  our  financial  advisor  in  connection  with  potential  acquisitions,
dispositions,  or  other  transactions,  and  our  participation  in  various  investments,  stock  loans  or  cash
management vehicles placed by or recommended by CF&Co;

•

the structural, financial, tax, employee retention and other impacts of our expected Corporate Conversion;

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the  integration  of  acquired  businesses  and  their  operations  and  back  office  functions  with  our  other
businesses;

the effect on our businesses of any extraordinary transactions, including the Corporate Conversion, the timing
and terms of any such transaction, including potential dilution, taxes, costs, and other impacts, and our ability
to complete such transaction on our anticipated schedule;

the rebranding of our current businesses or risks related to any potential dispositions of all or any portion of
our existing or acquired businesses;

market volatility as a result of the effects of rising interest rates, the strengthening U.S. dollar, global inflation
rates, potential economic downturns, including recessions, and similar effects, which may not be predictable
in future periods;

economic or geopolitical conditions or uncertainties, the actions of governments or central banks, including
the impact of COVID-19 on the global markets and governmental responses, and restrictions on business and
commercial  activity,  uncertainty  regarding  the  consequences  of  Brexit  following  the  withdrawal  process,
including  potential  reduction  in  investment  in  the  U.K.,  and  the  pursuit  of  trade,  border  control  or  other
related policies by the U.S. and/or other countries (including U.S.-China trade relations), recent economic and
political volatility in the U.K., rising political and other tensions between the U.S. and China, political and
labor  unrest  in  Hong  Kong,  China  and  other  jurisdictions,  conflict  in  the  Middle  East,  Russia,  Ukraine  or
other jurisdictions, the impact of U.S. government shutdowns, elections, political unrest, boycotts, stalemates
or other social and political responses to governmental mandates and other restrictions related to COVID-19
in the U.S. or abroad, and the impact of terrorist acts, acts of war or other violence or political unrest, as well
as  natural  disasters  or  weather-related  or  similar  events,  including  hurricanes  and  heat  waves,  as  well  as
power  failures,  communication  and  transportation  disruptions,  and  other  interruptions  of  utilities  or  other
essential services and the impacts of pandemics and other international health emergencies;

risks inherent in doing business in international markets, and any failure to identify and manage those risks, as
well as the impact of Russia's ongoing Invasion of Ukraine and additional sanctions and regulations imposed
by governments and related counter-sanctions, including any related reserves;

the effect on our businesses, our clients, the markets in which we operate, our Corporate Conversion, and the
economy  in  general  of  changes  in  the  U.S.  and  foreign  tax  and  other  laws,  including  changes  in  tax  rates,
repatriation  rules,  and  deductibility  of  interest,  potential  policy  and  regulatory  changes  in  other  countries,
sequestrations,  uncertainties  regarding  the  debt  ceiling  and  the  federal  budget,  responses  to  rising  global
inflation rates, and other potential political policies;

our dependence upon our key employees, our ability to build out successful succession plans, the impact of
absence due to illness or leave of certain key executive officers or employees and our ability to attract, retain,
motivate  and  integrate  new  employees,  as  well  as  the  competing  demands  on  the  time  of  certain  of  our
executive officers who also provide services to Cantor, Newmark and various other ventures and investments
sponsored by Cantor;

the effect on our businesses of changes in interest rates, changes in benchmarks, including the transition away
from LIBOR, the transition to alternative benchmarks such as SOFR, the effect on our business and revenues
of  the  strengthening  U.S.  dollar,  rising  interest  rates  and  market  uncertainty,  the  level  of  worldwide
governmental debt issuances, austerity programs, government stimulus packages, increases and decreases in
the federal funds interest rate and other actions to moderate inflation, increases or decreases in deficits and the
impact  of  increased  government  tax  rates,  and  other  changes  to  monetary  policy,  and  potential  political
impasses or regulatory requirements, including increased capital requirements for banks and other institutions
or changes in legislation, regulations and priorities;

extensive  regulation  of  our  businesses  and  customers,  changes  in  regulations  relating  to  financial  services
companies and other industries, and risks relating to compliance matters, including regulatory examinations,
inspections,  investigations  and  enforcement  actions,  and  any  resulting  costs,  increased  financial  and  capital
requirements,  enhanced  oversight,  remediation,  fines,  penalties,  sanctions,  and  changes  to  or  restrictions  or
limitations  on  specific  activities,  including  potential  delays  in  accessing  markets,  including  due  to  our
regulatory  status  and  actions,  operations,  compensatory  arrangements,  and  growth  opportunities,  including
acquisitions, hiring, and new businesses, products, or services;

factors related to specific transactions or series of transactions, including credit, performance, and principal
risk, trade failures, counterparty failures, and the impact of fraud and unauthorized trading;

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costs  and  expenses  of  developing,  maintaining,  and  protecting  our  intellectual  property,  as  well  as
employment,  regulatory,  and  other  litigation  and  proceedings,  and  their  related  costs,  including  judgments,
indemnities, fines, or settlements paid and the impact thereof on our financial results and cash flows in any
given period;

certain  financial  risks,  including  the  possibility  of  future  losses,  indemnification  obligations,  assumed
liabilities,  reduced  cash  flows  from  operations,  increased  leverage,  reduced  availability  under  our  credit
agreements, and the need for short- or long-term borrowings, including from Cantor, our ability to refinance
our indebtedness, and changes to interest rates and liquidity or our access to other sources of cash relating to
acquisitions,  dispositions,  or  other  matters,  potential  liquidity  and  other  risks  relating  to  our  ability  to
maintain continued access to credit and availability of financing necessary to support our ongoing business
needs,  on  terms  acceptable  to  us,  if  at  all,  and  risks  associated  with  the  resulting  leverage,  including
potentially causing a reduction in our credit ratings and the associated outlooks and increased borrowing costs
as well as interest rate and foreign currency exchange rate fluctuations;

risks  associated  with  the  temporary  or  longer-term  investment  of  our  available  cash,  including  in  the  BGC
OpCos, defaults or impairments on our investments, joint venture interests, stock loans or cash management
vehicles and collectability of loan balances owed to us by partners, employees, the BGC OpCos or others;

our ability to enter new markets or develop new products, offerings, trading desks, marketplaces, or services
for  existing  or  new  clients,  including  our  ability  to  develop  new  Fenics  platforms  and  products,  to
successfully  launch  our  FMX  initiative  and  to  attract  investors  thereto,  the  risks  inherent  in  operating  our
cryptocurrency  business  and  in  safekeeping  cryptocurrency  assets,  and  efforts  to  convert  certain  existing
products to a Fully Electronic trade execution, and to induce such clients to use these products, trading desks,
marketplaces, or services and to secure and maintain market share;

the impact of any restructuring or similar transactions, including the Corporate Conversion, on our ability to
enter into marketing and strategic alliances and business combinations, attract investors or partners or engage
in  other  transactions  in  the  financial  services  and  other  industries,  including  acquisitions,  tender  offers,
dispositions, reorganizations, partnering opportunities and joint ventures, the failure to realize the anticipated
benefits  of  any  such  transactions,  relationships  or  growth,  and  the  future  impact  of  any  such  transactions,
relationships  or  growth  on  our  other  businesses  and  our  financial  results  for  current  or  future  periods,  the
integration of any completed acquisitions and the use of proceeds of any completed dispositions, the impact
of amendments and/or terminations of strategic arrangements, and the value of and any hedging entered into
in  connection  with  consideration  received  or  to  be  received  in  connection  with  such  dispositions  and  any
transfers thereof;

our estimates or determinations of potential value with respect to various assets or portions of our businesses,
such as Fenics, including with respect to the accuracy of the assumptions or the valuation models or multiples
used;

our ability to manage turnover and hire, train, integrate and retain personnel, including brokers, salespeople,
managers,  technology  professionals  and  other  front-office  personnel,  back-office  and  support  services,  and
departures of senior personnel;

our  ability  to  expand  the  use  of  technology  and  maintain  access  to  the  intellectual  property  of  others  for
Hybrid and Fully Electronic trade execution in our product and service offerings, and otherwise;

our ability to effectively manage any growth that may be achieved, including outside the U.S., while ensuring
compliance  with  all  applicable  financial  reporting,  internal  control,  legal  compliance,  and  regulatory
requirements;

our  ability  to  identify  and  remediate  any  material  weaknesses  or  significant  deficiencies  in  our  internal
controls which could affect our ability to properly maintain books and records, prepare financial statements
and reports in a timely manner, control our policies, practices and procedures, operations and assets, assess
and manage our operational, regulatory and financial risks, and integrate our acquired businesses and brokers,
salespeople, managers, technology professionals and other front-office personnel;

the impact of unexpected market moves and similar events;

information technology risks, including capacity constraints, failures, or disruptions in our systems or those of
the  clients,  counterparties,  exchanges,  clearing  facilities,  or  other  parties  with  which  we  interact,  including
increased  demands  on  such  systems  and  on  the  telecommunications  infrastructure  from  remote  working
during  the  COVID-19  pandemic,  cyber-security  risks  and  incidents,  compliance  with  regulations  requiring

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data minimization and protection and preservation of records of access and transfers of data, privacy risk and 
exposure to potential liability and regulatory focus;

the effectiveness of our governance, risk management, and oversight procedures and impact of any potential
transactions or relationships with related parties;

the  impact  of  our  ESG  or  “sustainability”  ratings  on  the  decisions  by  clients,  investors,  ratings  agencies,
potential  clients  and  other  parties  with  respect  to  our  businesses,  investments  in  us,  our  borrowing
opportunities or the market for and trading price of BGC Class A common stock, Company Debt Securities,
or other matters;

the  fact  that  the  prices  at  which  shares  of  our  Class  A  common  stock  are  or  may  be  sold  in  offerings,
acquisitions, or other transactions may vary significantly, and purchasers of shares in such offerings or other
transactions, as well as existing stockholders, may suffer significant dilution if the price they paid for their
shares is higher than the price paid by other purchasers in such offerings or transactions;

the  impact  of  reductions  to  our  dividends  and  distributions  and  the  timing  and  amounts  of  any  future
dividends or distributions, including our ability to meet expectations with respect to payments of dividends
and distributions and repurchases of shares of our Class A common stock and purchases or redemptions of
limited partnership interests in BGC Holdings, or other equity interests in us or any of our other subsidiaries,
including  the  BGC  OpCos,  including  from  Cantor,  our  executive  officers,  other  employees,  partners,  and
others, and the net proceeds to be realized by us from offerings of shares of BGC Class A common stock and
Company  Debt  Securities,  and  our  ability  to  pay  any  excise  tax  that  may  be  imposed  on  the  repurchase  of
shares; and

the effect on the markets for and trading prices of our Class A common stock and Company Debt Securities
due to COVID-19 and other market factors as well as on various offerings and other transactions, including
offerings  of  our  Class  A  common  stock  and  convertible  or  exchangeable  debt  or  other  securities,  our
repurchases of shares of our Class A common stock and purchases or redemptions of BGC Holdings limited
partnership interests or other equity interests in us or in our subsidiaries, any exchanges by Cantor of shares of
our Class A common stock for shares of our Class B common stock, any exchanges or redemptions of limited
partnership units and issuances of shares of our Class A common stock in connection therewith, including in
corporate  or  partnership  restructurings,  our  payment  of  dividends  on  our  Class  A  common  stock  and
distributions  on  limited  partnership  interests  in  BGC  Holdings  and  the  BGC  OpCos,  convertible  arbitrage,
hedging,  and  other  transactions  engaged  in  by  us  or  holders  of  our  outstanding  shares,  Company  Debt
Securities or other securities, share sales and stock pledge, stock loans, and other financing transactions by
holders of our shares (including by Cantor or others), including of shares acquired pursuant to our employee
benefit  plans,  unit  exchanges  and  redemptions,  corporate  or  partnership  restructurings,  acquisitions,
conversions  of  shares  of  our  Class  B  common  stock  and  our  other  convertible  securities  into  shares  of  our
Class A common stock, and distributions of our Class A common stock by Cantor to its partners, including
the April 2008 and February 2012 distribution rights shares.

The foregoing risks and uncertainties, as well as those risks and uncertainties discussed under the headings “Item 1A—
Risk Factors,” and “Item 7A—Quantitative and Qualitative Disclosures About Market Risk” and elsewhere in this Form 10-K, 
may cause actual results and events to differ materially from the forward-looking statements.

OVERVIEW AND BUSINESS ENVIRONMENT

BGC is a leading global financial brokerage and technology company servicing the global financial markets.

Through brands including BGC®, Fenics®, GFI®, Sunrise Brokers™, Poten & Partners®, and RP Martin®, among 
others,  our  businesses  specialize  in  the  brokerage  of  a  broad  range  of  products,  including  fixed  income  such  as  government 
bonds,  corporate  bonds,  and  other  debt  instruments,  as  well  as  related  interest  rate  derivatives  and  credit  derivatives. 
Additionally,  we  provide  brokerage  products  across  FX,  Equities,  Energy  and  Commodities,  Shipping,  and  Futures  and 
Options.  Our  businesses  also  provide  a  wide  variety  of  services,  including  trade  execution,  connectivity  solutions,  brokerage 
services,  clearing,  trade  compression,  and  other  post-trade  services,  information,  and  other  back-office  services  to  a  broad 
assortment of financial and non-financial institutions. 

Our integrated platform is designed to provide flexibility to customers with regard to price discovery, execution and 
processing of transactions, and enables them to use our Voice, Hybrid, or, in many markets, Fully Electronic brokerage services 
in connection with transactions executed either OTC or through an exchange. Through our Fenics® group of electronic brands, 
we offer a number of market infrastructure and connectivity services, including our Fully Electronic marketplaces, and the Fully 

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Electronic brokerage of certain products that also may trade via our Voice and Hybrid execution platforms. The full suite of 
Fenics®  offerings  includes  our  Fully  Electronic  and  Hybrid  brokerage,  market  data  and  related  information  services,  trade 
compression and other post-trade services, analytics related to financial instruments and markets, and other financial technology 
solutions.  Fenics®  brands  also  operate  under  the  names  Fenics®,  FMX™,  FMX  Futures  Exchange™,  Fenics  Markets 
Xchange™, Fenics Futures Exchange™, Fenics UST™, Fenics FX™, Fenics Repo™, Fenics Direct™, Fenics MID™, Fenics 
Market Data™, Fenics GO™, Fenics PortfolioMatch™, kACE2®, and Lucera®.

BGC, BGC Partners, BGC Trader, GFI, GFI Ginga, CreditMatch, Fenics, Fenics.com, FMX, Sunrise Brokers, Poten & 
Partners,  RP  Martin,  kACE2,  Capitalab,  Swaptioniser,  CBID,  and  Lucera  are  trademarks/service  marks,  and/or  registered 
trademarks/service marks of BGC Partners, Inc. and/or its affiliates.

Our  customers  include  many  of  the  world’s  largest  banks,  broker-dealers,  investment  banks,  trading  firms,  hedge 
funds, governments, corporations, and investment firms. We have dozens of offices globally in major markets including New 
York  and  London,  as  well  as  in  Bahrain,  Beijing,  Bogotá,  Brisbane,  Cape  Town,  Chicago,  Copenhagen,  Dubai,  Dublin, 
Frankfurt,  Geneva,  Hong  Kong,  Houston,  Johannesburg,  Madrid,  Manila,  Melbourne,  Mexico  City,  Miami,  Milan,  Monaco, 
Nyon, Paris, Perth, Rio de Janeiro, Santiago, São Paulo, Seoul, Shanghai, Singapore, Sydney, Tel Aviv, Tokyo, Toronto, and 
Zurich.

As  of  December  31,  2022,  we  had  1,985  brokers,  salespeople,  managers,  technology  professionals  and  other  front-

office personnel across our businesses.

Recent Developments / Strengthening U.S. Dollar

The Company generates a significant amount of its revenues in non-U.S. dollar denominated currencies, particularly in 
the euro and pound  sterling.  The U.S.  dollar  remained at strong levels against both the euro and pound sterling, which were 
approximately 11% and 13% lower, respectively, for the quarter ended December 31, 2022 as compared to the quarter ended 
December 31, 2021. The Company's total revenue for the quarter would have been $13.7 million higher, but for the stronger 
U.S. dollar. The stronger U.S. dollar is expected to be less impactful on reported revenue throughout 2023.

Recent Developments / Tax Policy Changes

On August 16, 2022, the Inflation Reduction Act of 2022 was signed into federal law. The IR Act provides for, among 
other  things,  a  new  corporate  alternative  minimum  tax  based  on  15%  of  adjusted  financial  statement  income  for  applicable 
corporations. The IR Act also provides for a new U.S. federal 1% excise tax on certain repurchases (including redemptions) of 
stock by publicly traded U.S. corporations and certain U.S. subsidiaries of publicly traded foreign corporations. The excise tax 
is imposed on the repurchasing corporation itself and not its stockholders from which the shares are repurchased. In addition, 
certain  exceptions  apply  to  the  excise  tax.  These  tax  provisions  of  the  IR  Act  are  effective  January  1,  2023.  We  continue  to 
analyze the impacts of the IR Act and related regulatory developments; however, it is not expected to have a material impact on 
our financial statements in future periods.

Fenics

For the purposes of this document and subsequent SEC filings, all of our higher margin, technology-driven businesses 
are referred to as Fenics. In the first quarter of 2021, we began to categorize our Fenics businesses as Fenics Markets and Fenics 
Growth Platforms and we have conformed our prior period comparisons of the components of our Fenics business to this new 
categorization.  Fenics  Markets  includes  the  fully  electronic  portion  of  BGC's  brokerage  businesses,  data,  software  and  post-
trade revenues that are unrelated to Fenics Growth Platforms, as well as Fenics Integrated revenues. Fenics Growth Platforms 
includes  Fenics  UST,  Fenics  GO,  Lucera,  Fenics  FX,  Portfolio  Match  and  other  newer  standalone  platforms.  Revenue 
generated  from  data,  software  and  post-trade  attributable  to  Fenics  Growth  Platforms  are  included  within  their  related 
businesses.

Historically, technology-based product growth has led to higher margins and greater profits over time for exchanges 
and  wholesale  financial  intermediaries  alike,  even  if  overall  Company  revenues  remain  consistent.  This  is  largely  because 
automated and electronic trading efficiency allows the same number of employees to manage a greater volume of trades as the 
marginal  cost  of  incremental  trading  activity  falls.  Over  time,  the  conversion  of  exchange-traded  and  OTC  markets  to  fully 
electronic trading has also typically led to an increase in volumes which offset lower commissions, and often lead to similar or 
higher  overall  revenues.  We  have  been  a  pioneer  in  creating  and  encouraging  hybrid  and  fully  electronic  execution,  and  we 
continually work with our customers to expand such trading across more asset classes and geographies.

These  electronic  markets  for  OTC  products  have  grown  as  a  percentage  of  overall  industry  volumes  over  the  past 
decade  as  firms  like  BGC  have  invested  in  the  kinds  of  technology  favored  by  our  customers.  Regulation  across  banking, 

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capital markets, and OTC derivatives has accelerated the adoption of fully electronic execution, and we expect this demand to 
continue. We also believe that new clients, beyond our large bank customer base, will primarily transact electronically across 
our Fenics platforms.

The combination of wider adoption of hybrid and fully electronic execution and our competitive advantage in terms of 
technology and experience has contributed to our strong growth in electronically traded products. We continue to invest in our 
high-growth,  high-margin,  technology-driven  businesses,  including  our  standalone  fully  electronic  Fenics  Growth  Platforms. 
Fenics  has  exhibited  strong  growth  over  the  past  several  years,  and  we  believe  that  this  growth  has  outpaced  the  wholesale 
brokerage  industry.  We  expect  this  trend  to  accelerate  as  we  continue  to  convert  more  of  our  Voice/Hybrid  execution  into 
higher-margin, technology-driven execution across our Fenics platforms and continue to grow our Fenics Growth Platforms.

We expect to benefit from the trend towards electronic trading, increased demand for market data, and the need for 
increased connectivity, automation, and post-trade services. We continue to onboard new customers as the opportunities created 
by electronic and algorithmic trading continue to transform our industry. We continue to roll out our next-gen Fenics execution 
platforms across more products and geographies with the goal of seamlessly integrating the liquidity of voice transactions with 
customer  electronic  orders  either  by  a  GUI,  API,  or  web-based  interface.  We  expect  to  have  continued  success  converting 
Voice/Hybrid desks over time as we roll out these platforms across more products and geographies.

Fenics Growth Platforms revenue grew 7.6% to $14.8 million in the fourth quarter of 2022. Collectively, our newer 
Fenics Growth Platform offerings, such as those listed above, are not yet fully up to scale, but continue to grow at a leading 
rate.  Over  time,  we  expect  these  new  products  and  services  to  become  profitable,  high-margin  businesses  as  their  scale  and 
revenues increase, all else equal.

We continue to invest in our Fenics Growth Platforms, which currently include:

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Fenics  UST,  one  of  the  largest  CLOB  platforms  for  U.S.  Treasuries,  saw  CLOB  market  share  increase  by
nearly  200  basis  points  during  the  fourth  quarter  on  ADV  of  approximately  $30  billion.  Fenics  UST's
streaming volume grew for the seventh consecutive quarter, with streaming ADV doubling compared to the
fourth quarter a year ago. Streaming earns significantly higher fee capture and represented over 40% of total
volume in the fourth quarter, an all-time high.

Lucera,  our  infrastructure  and  software  business,  offers  the  trading  community  direct  connectivity  to  each
other. Lucera has a fully built, scalable infrastructure that provides clients electronic trading connectivity with
their counterparties within days, as opposed to months, and at a significantly lower cost. Lucera is comprised
of two main business lines, LUMEMarkets and LuceraConnect. LUMEMarkets is our low latency aggregator,
providing a single access point across multiple fragmented marketplaces and exchanges (FX, Rates, Futures
and Credit markets). LuceraConnect provides on-demand connectivity to over one thousand endpoints across
buy-side clients, trading firms, marketplaces, and exchanges. LuceraConnect has quickly become the industry
standard for the FX market and is rapidly expanding in other asset classes. Lucera launched its cryptocurrency
infrastructure business in the third quarter of 2021, offering clients access to cryptocurrency trading venues
through LuceraConnect, leveraging its leading connectivity to exchanges, trading platforms, and custodians.
Additionally,  LUMEMarkets  provides  an  aggregated  view  of  prices  from  multiple  cryptocurrency  venues.
Lucera’s  cryptocurrency  solution  is  focused  on  providing  clients  with  world-class  infrastructure  that  offers
fully compliant workflows. Lucera also supports the distribution of Fenics trading platforms, including Fenics
UST,  Fenics  FX  and  Fenics  MIDFX.  Lucera  had  another  record  quarter,  generating  strong  double-digit
revenue  growth  of  19%  versus  last  year.  Lucera  added  new  clients  across  both  its  LUMEMarkets  platform
and Compute hosting service and continues to grow its pipeline.

Fenics  GO,  our  global  options  electronic  trading  platform,  saw  strong  volume  growth  across  its  Asian  and
European businesses. HSCEI and KOSPI volumes were up over 470% and approximately 150% respectively,
while Euro Stoxx 50 volumes were up over 400%. Fenics GO's newer MSCI index options offerings ranked
first across five of fifteen MSCI Asian indices at Eurex, the largest clearer of these products.

Fenics FX, our ultra-low latency electronic FX trading platform, generated volume growth of 22%. Fenics FX
had another record quarter and has grown at a market leading rate throughout 2022.

Portfolio Match, our credit matching platform, grew ADV over three-fold, capturing market share. Portfolio
Match  was  launched  in  2021  and  has  become  one  of  the  fastest  growing  businesses  across  the  Fenics
ecosystem.

Fenics Markets revenue grew 7.4% to $94.1 million in the fourth quarter of 2022 compared to the prior year period.

Fenics Markets notable highlights for the fourth quarter of 2022 include:

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Fenics Market Data signed 48 new contracts during the fourth quarter and grew revenue 20% year-over-year.
With market leading client retention rates, Fenics Market Data continues to see strong demand for its Rates,
FX, and Energy data packages.

Fenics  Direct,  our  web-delivered  multi-dealer  FX  options  platform,  generated  ADV  growth  of  22%  in  the
quarter.

Fenics MIDFX, our leading wholesale FX hedging platform, continued to see strong growth across its Asian
NDF business with ADV improving by 83%.

Revenues in our Fenics businesses increased 7.4% to $108.9 million in the fourth quarter and 12.0% to $449.4 million 
for the year ended December 31, 2022 compared to the prior year period. Within our Fenics businesses, Fenics Markets revenue 
grew 7.4% to $94.1 million, and Fenics Growth Platforms revenue increased 7.6% to $14.8 million. Fenics Markets had a pre-
tax margin of 30.6% in the fourth quarter of 2022. 

Fenics  has  generated  strong  growth  through  the  first  35  trading  days  of  2023  with  revenue  up  11%  over  the  same 
period  last  year.  This  strong  electronic  momentum  has  been  driven  by  Rates,  Credit,  Foreign  Exchange,  Data  and  Software. 
Fenics  Markets  revenue  was  up  10%.  This  growth  reflects  the  strength  of  our  comprehensive  Fenics  offerings  that  provide 
access to the deepest wholesale liquidity pools using state-of-the-art technology. Fenics Growth Platforms revenue was up 22%. 
This  growth  has  been  led  by  our  broad  range  of  Fully  Electronic  platforms  such  as  Fenics  UST,  Lucera,  Fenics  GO  and 
Portfolio Match.

Total  revenues  from  our  high-margin  data,  software,  and  post-trade  business,  which  is  predominately  comprised  of 
recurring revenue, were up 3.8% to $25.1 million in the fourth quarter of 2022 and 7.1% to $96.4 million for the year ended 
December  31,  2022  over  the  prior  year  period.  Fenics  brokerage  revenues  increased  by  8.6%  to  $83.8  million  in  the  fourth 
quarter  of  2022  and  13.4%  to  $352.9  million  for  the  year  ended  December  31,  2022  over  the  prior  year  period.  Fenics 
represented 25.0% of BGC's overall revenue in the fourth quarter and is expected to become an ever larger part of our overall 
business going forward. We continue to analyze how to optimally configure our Voice/Hybrid and Fully Electronic businesses. 
further,  we  continue  to  navigate  the  volatile  interest  rate  environment  experienced  over  the  last  year  and  the  impact  of  high 
interest rates on our trading volumes and spreads.

FMX

FMX,  our  electronic  U.S.  Treasury  and  Rates  futures  platform,  is  expected  to  complete  all  regulatory  filings  and 
submissions  by  the  end  of  the  first  quarter.  We  remain  on  track  for  a  soft  launch  of  our  futures  platform  and  we  expect  to 
announce its strategic investors prior to the launch.

The  FMX  partnership  brings  together  LCH,  the  largest  holder  of  interest  rate  collateral,  strategic  investors, 
representing the largest users of U.S. interest rate products, and Fenics' industry-leading technology and distribution, creating 
enormous value for BGC as it competes in the world's most valuable futures markets.

Futures Exchange Group

On  July  30,  2021,  the  Company  completed  the  purchase  of  the  Futures  Exchange  Group  for  a  purchase  price  of 
$4.9 million at closing, plus the cash held at closing by the Futures Exchange Group, and an earn-out, only payable out of our 
portion of the profits of the Futures Exchange Group, capped at the amount Cantor contributed to the Futures Exchange Group 
prior to closing. 

The Futures Exchange Group acquisition has been determined to be a combination of entities under common control 
that resulted in a change in the reporting entity. Accordingly, the financial results of the Company have been recast to include 
the  financial  results  of  the  Futures  Exchange  Group  in  the  current  and  prior  periods  as  if  the  Futures  Exchange  Group  had 
always  been  consolidated.  The  assets  and  liabilities  of  the  Futures  Exchange  Group  have  been  recorded  in  the  Company's 
Consolidated Statements of Financial Condition at the seller's historical carrying value. The purchase of the Futures Exchange 
Group was accounted for as an equity transaction for the period ended September 30, 2021 (the period in which the transaction 
occurred).

Corporate Conversion

We  expect  to  file  a  Form  S-4  Registration  Statement  in  connection  with  the  Corporate  Conversion  in  the  second 
quarter of 2023. We also expect to provide additional information with respect to our expected tax rates going forward as soon 
as practicable. 

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On  November  15,  2022,  BGC  Partners,  Inc.  and  BGC  Holdings,  along  with  certain  other  affiliated  entities,  entered 
into a Corporate Conversion Agreement in order to reorganize and simplify BGC's organizational structure by converting from 
an  Up-C  to  a  “Full  C-Corporation.”  Upon  completion  of  the  Corporate  Conversion  Transactions,  the  stockholders  of  BGC 
Partners and the limited partners of BGC Holdings will participate in the economics of the BGC businesses through the same 
publicly  traded  corporate  entity,  BGC  Group,  Inc.  By  simplifying  the  organizational  structure,  the  Corporate  Conversion 
Transactions are intended to improve transparency and reduce operational complexity.

The  Corporate  Conversion  Agreement  has  been  approved  by  BGC's  Board  of  Directors,  at  the  unanimous 

recommendation of the Joint Committee. 

In  the  first  quarter  of  2023,  BGC  received  preliminary  approvals  from  various  U.S.  and  international  regulatory 
authorities  relating  to  the  Corporate  Conversion  Transactions.  BGC  continues  to  seek  regulatory  approvals  where  required. 
Following  receipt  of  such  approvals,  and  subject  to  other  customary  closing  conditions,  including  approval  of  BGC's 
shareholders, which are expected to be satisfied, the Company expects to close the Corporate Conversion in the third quarter of 
2023.

Insurance Disposition

On  November  1,  2021,  the  Company  successfully  completed  the  Insurance  Business  Disposition  and,  after  closing 
adjustments, received $534.9 million in gross cash proceeds, subject to limited post-closing adjustments. The investment in the 
Insurance brokerage business generated an internal rate of return of 21.2% for our shareholders. The sale of the business did not 
represent a strategic shift that would have a major effect on the Company’s operations and financial results and was, therefore, 
not classified as discontinued operations. CF&Co served as advisor to the Company in connection with the transaction, and as a 
result, $4.4 million of banking fees was paid to Cantor upon closing of the transaction. For further information regarding the 
sale of our Insurance brokerage business, please see our Current Report on Form 8-K filed with the SEC on November 1, 2021, 
as well as Note 5—"Divestitures" to our Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-
K.

Unvested equity and other awards previously granted by BGC to employees of its Insurance brokerage business were 
converted into the right to receive a cash payment from BGC; a significant portion of these awards was 50% vested and paid in 
cash at closing, with the remaining 50% vesting and to be paid in cash two years after closing. The remaining portion of these 
awards will have been 100% vested and paid in cash by two years after the closing. The payments after closing are only made if 
the applicable employee remains an employee of the Insurance brokerage business.

Other Matters

In February 2022, the U.S., U.K., EU, and other countries imposed sanctions on Russian counterparties, and as a result 
BGC  has  ceased  trading  with  those  clients.  The  Company  derived  less  than  one  percent  of  total  revenue  from  its  Moscow 
branch  and  sanctioned  Russian  counterparties.  During  the  year  ended  December  31,  2022,  the  Company  has  reserved 
$11.4 million in connection with unsettled trades and receivables with sanctioned Russian entities.

Financial Services Industry

The  financial  services  industry  has  grown  historically  due  to  several  factors.  One  factor  was  the  increasing  use  of 
derivatives to manage risk or to take advantage of the anticipated direction of a market by allowing users to protect gains and/or 
guard against losses in the price of underlying assets without having to buy or sell the underlying assets. Derivatives are often 
used  to  mitigate  the  risks  associated  with  interest  rates,  equity  ownership,  changes  in  the  value  of  FX,  credit  defaults  by 
corporate and sovereign debtors, and changes in the prices of commodity products. Over this same timeframe, demand from 
financial  institutions,  large  corporations  and  other  end-users  of  financial  products  have  increased  volumes  in  the  wholesale 
derivatives market, thereby increasing the business opportunity for financial intermediaries.

Another key factor in the historical growth of the financial services industry has been the increase in the number of 
new financial products. As market participants and their customers strive to mitigate risk, new types of equity and fixed income 
securities, futures, options and other financial instruments have been developed. Most of these new securities and derivatives 
were not immediately ready for more liquid and standardized electronic markets, and generally increased the need for trading 
and required broker-assisted execution.

Due  largely  to  the  impacts  of  the  global  financial  crisis  of  2008-2009,  our  businesses  had  faced  more  challenging 
market conditions from 2009 until the second half of 2016. Accommodative monetary policies were enacted by several major 
central banks, including the Federal Reserve, Bank of England, Bank of Japan and the European Central Bank, in response to 
the global financial crises. These policies resulted in historically low levels of volatility and interest rates across many of the 

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financial  markets  in  which  we  operate.  The  global  credit  markets  also  faced  structural  issues,  such  as  increased  bank  capital 
requirements under Basel III. Consequently, these factors contributed to lower trading volumes in our Rates and Credit asset 
classes across most geographies in which we operated.

From  mid-2016  until  the  first  quarter  of  2020,  the  overall  financial  services  industry  benefited  from  sustained 
economic growth, lower unemployment rates in most major economies, higher consumer spending, the modification or repeal 
of certain U.S. regulations, and higher overall corporate profitability. The trend towards digitization and electronification within 
the industry contributed to higher overall volumes and transaction count in fully electronic execution. From the second quarter 
of 2020 onward, concerns about the future trade relationship between the U.K. and the EU after Brexit, a slowdown in global 
growth  driven  by  the  outbreak  of  COVID-19,  and  an  increase  in  trade  protectionism  were  tempered  by  monetary  and  fiscal 
stimulus. During 2021, as the global economy recovered from the COVID-19 pandemic, higher inflation across the U.S. and 
other  G8  countries  led  many  central  banks  to  begin  and/or  announce  tapering  and  unwinding  of  asset  purchases  under 
quantitative easing programs, as well as implement multiple interest rate hikes.

This recent change in central bank monetary policies away from zero interest rates, following the highest inflation in 
decades,  together  with  rising  interest  rates  and  the  strengthening  of  the  U.S.  dollar,  has  set  the  stage  for  a  resurgence  in 
secondary  market  trading  volumes  for  rates,  credit  and  foreign  exchange.  For  more  than  fourteen  years,  BGC  and  the  entire 
financial  service  industry's  trading  volumes  have  been  constrained  by  low  interest  rates  and  quantitative  easing.  Throughout 
2023,  the  Company  expects  sustained  levels  of  increased  secondary  market  trading  volumes  in  Rates,  Credit  and  Foreign 
Exchange, where BGC is a market leader.

In December of 2022, our brokerage revenue grew 7%. The momentum has continued into 2023 with revenue up 8% 
for the first 35 trading days of the first quarter of 2023. This growth is consistent with our previously reported expectation for 
strong growth to return in 2023. We have seen revenue growth across all of our asset classes with Rates, Foreign Exchange and 
Credit increasing by 6%, 6% and 4%, respectively. Additionally, Energy and Commodities has increased by 15% and Equities 
is up by 14%.

Manufactured  zero  and  near-zero  interest  rates  over  the  last  fourteen  years  has  caused  the  break  down  and 
disappearance  of  the  historic  correlation  between  issuance  and  trading  volume  growth.  With  meaningful  interest  rates  and 
issuance  that  is  multiples  above  2008  levels,  we  believe  the  return  of  this  strong  positive  correlation  will  drive  our  trading 
volumes  significantly  higher.  This  has  set  the  stage  for  broad-based  growth  across  BGC's  businesses  and  asset  classes.  We 
expect continued growth throughout 2023 and for the foreseeable future.

Brexit

On January 1, 2021, the U.K. formally left the EU and U.K.-EU trade became subject to a new agreement that was 
concluded in December of 2020. The exit from the EU is commonly referred to as Brexit. Financial services fall outside of the 
scope  of  this  trade  agreement.  At  the  time  the  relationship  was  expected  to  be  determined  by  a  series  of  “equivalence 
decisions,” each of which would grant mutual market access for a limited subset of financial services where either party finds 
the other party has a regulatory regime that achieves similar outcomes to its own. In March 2021, the U.K. and EU agreed a 
Memorandum of Understanding on Financial Services Regulatory Cooperation which creates a structure for dialogue but does 
not include commitments on equivalence.

In  light  of  ongoing  uncertainties,  market  participants  are  still  adjusting  the  way  in  which  they  conduct  business 
between the U.K. and EU. The impact of Brexit on the U.K.-EU flow of financial services and economies of the U.K. and the 
EU member states continues to evolve.

We  implemented  plans  to  ensure  continuity  of  service  in  Europe  and  continue  to  have  regulated  offices  in  place  in 
many  of  the  major  European  markets.  As  part  of  our  ongoing  Brexit  strategy,  ownership  of  BGC  Madrid,  Copenhagen  and 
Frankfurt  &  GFI  Paris,  Madrid  and  Dublin  branches  was  transferred  to  Aurel  BGC  SAS  (a  French-based  operation  and 
therefore  based  in  the  EU)  in  July  2020.  We  have  been  generally  increasing  our  footprint  in  the  EU  which  includes  the 
establishment  of  a  new  branch  office  of  Aurel  BGC  SAS  in  Milan  and  a  new  office  in  Monaco  under  a  new  local  Monaco 
subsidiary.

Regardless of these and other mitigating measures, our European headquarters and largest operations are in London, 
and  market  access  risks  and  uncertainties  have  had  and  could  continue  to  have  a  material  adverse  effect  on  our  customers, 
counterparties, business, prospects, financial condition and results of operations. Furthermore, in the future the U.K. and EU’s 
regulation may diverge, which could disrupt and increase the costs of our operations, and result in a loss of existing levels of 
cross-border market access.

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Industry Consolidation

Over  the  past  decade,  there  has  been  significant  consolidation  among  the  interdealer-brokers  and  wholesale  brokers 
with which we compete. We expect to continue to compete with the electronic markets, post-trade and information businesses 
of NEX, that are part of CME now, through the various offerings on our Fenics platform. We will also continue to compete 
with TP ICAP and Tradition across various Voice/Hybrid brokerage marketplaces as well as via Fenics. 

Additionally,  there  has  been  an  increase  in  acquisitions  of  OTC  trading  platforms  by  exchanges  and  electronic 
marketplaces  such  as  ICE  buying  BondPoint  and  TMC  Bonds,  Deutsche  Börse  buying  360T,  and  CBOE  buying  Hotspot, 
MarketAxess  buying  LiquidityEdge,  Tradeweb  buying  Nasdaq  U.S.  Fixed  Income  Electronic  Trading  Platform,  LSEG 
acquiring  Quantile,  etc.  We  view  the  recent  consolidation  in  the  industry  favorably,  as  we  expect  it  to  provide  additional 
operating leverage to our businesses in the future.

Growth Drivers

As  a  wholesale  intermediary  in  the  financial  services  industry,  our  businesses  are  driven  primarily  by  secondary 
trading volumes in the markets in which we broker, the size and productivity of our front-office headcount including brokers, 
salespeople, managers, technology professionals and other front-office personnel, regulatory issues, and the percentage of our 
revenues  we  are  able  to  generate  by  Fully  Electronic  means.  BGC’s  revenues  tend  to  have  low  correlation  in  the  short-  and 
medium-term with global bank and broker-dealer sales and trading revenues, which reflect bid-ask spreads and mark-to-market 
movements, as well as industry volumes in both the primary and secondary markets.

Below is a brief analysis of the market and industry volumes for some of our products, including our overall Hybrid 

and Fully Electronic execution activities.

Overall Market Volumes and Volatility

Volume is driven by a number of factors, including the level of issuance for financial instruments, price volatility of 
financial  instruments,  macro-economic  conditions,  creation  and  adoption  of  new  products,  regulatory  environment,  and  the 
introduction and adoption of new trading technologies. Historically, increased price volatility has often increased the demand 
for hedging instruments, including many of the cash and derivative products that we broker.

Rates volumes in particular are influenced by market volumes and, in certain instances, volatility. Historically low and 
negative interest rates, as well as central bank quantitative easing programs, across the globe significantly reduced the overall 
trading  appetite  for  rates  products.  Such  programs  have  depressed  rates  volumes  because  they  entail  central  banks  buying 
government securities or other securities in the open market in an effort to promote increased lending and liquidity and bring 
down long-term interest rates. When central banks hold these instruments, they tend not to trade or hedge, thus lowering rates 
volumes  across  cash  and  derivatives  markets  industry-wide.  Following  the  market  dislocation  and  ongoing  pandemic,  major 
central  banks  such  as  the  U.S.  Federal  Reserve,  ECB,  Bank  of  Japan,  Bank  of  England,  and  Swiss  National  Bank  restarted 
quantitative easing programs in 2020. However, inflationary concerns have resulted in rising interest rates and tapering and/or 
unwinding of central bank asset purchases.

Management continues to expect a robust macro trading environment in 2023, leading to broad-based growth in most 
products BGC brokers. This improved backdrop is expected to support both BGC's Fenics and Voice / Hybrid businesses for 
the foreseeable future.

Additional  factors  have  weighed  on  market  volumes  in  the  products  we  broker.  For  example,  the  Basel  III  accord, 
implemented in late 2010 by the G-20 central banks, is a global regulatory framework on bank capital adequacy, stress testing 
and market liquidity risk that was developed with the intention of making banks more stable in the wake of the financial crisis 
by increasing bank liquidity and reducing bank leverage. The accord, which will take effect on January 1, 2023, has already 
required most large banks in G-20 nations to hold approximately three times as much Tier 1 capital as was required under the 
previous  set  of  rules.  These  capital  rules  have  made  it  more  expensive  for  banks  to  hold  non-sovereign  debt  assets  on  their 
balance sheets, and as a result, analysts say that banks have reduced their proprietary trading activity in corporate and asset-
backed fixed income securities as well as in various other OTC cash and derivative instruments. We believe that this has further 
reduced overall market exposure and industry volumes in many of the products we broker, particularly in Credit.

For the year ended December 31, 2022, industry volumes were higher year-over-year across short-term Rates, Foreign 
Exchange,  and  Equities,  particularly  equity  derivatives.  Secondary  trading  volumes  were  mixed  across  Credit  and  generally 
lower across medium- and long-term Rates. Energy and Commodities volumes were generally down due to ongoing challenges 
in  oil  and  UK  and  European  power  markets.  BGC’s  brokerage  revenues,  excluding  Insurance,  were  down  by  2.6%  year-on-
year. Below is an expanded discussion of the volume and growth drivers of our various brokerage product categories.

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Rates Volumes and Volatility

Our  Rates  business  is  influenced  by  a  number  of  factors,  including  global  sovereign  issuances,  interest  rate,  central 
bank  policies,  secondary  trading  and  the  hedging  of  these  sovereign  debt  instruments.  The  amount  of  global  sovereign  debt 
outstanding  remains  at  historically  high  levels;  the  level  of  secondary  trading  and  related  hedging  activity  was  mixed  during 
2022,  compared  to  the  prior  year  period.  According  to  Bloomberg  and  the  Federal  Reserve  Bank  of  New  York,  the  average 
daily volume of U.S. Treasuries with maturities less than three years was up 14%, while volumes for maturities six years and 
greater decreased by 11%. IRS volumes traded on SEF were down 39% compared to 2021, according to Clarus. In comparison, 
our overall Rates revenues were down 1.6% as compared to a year earlier to $549.5 million.

Our  Rates  revenues,  like  the  revenues  for  most  of  our  products,  are  not  fully  dependent  on  market  volumes  and, 
therefore,  do  not  always  fluctuate  consistently  with  industry  metrics.  This  is  largely  because  our  Voice,  Hybrid,  and  Fully 
Electronic Rates desks often have volume discounts built into their price structure, which results in our Rates revenues being 
less volatile than the overall industry volumes.

Overall, analysts and economists expect the absolute level of sovereign debt outstanding to remain at elevated levels 
for  the  foreseeable  future  as  governments  finance  their  future  deficits  and  roll  over  their  sizable  existing  debt.  Additionally, 
yields  on  benchmark  U.S.  Treasuries  exhibited  volatility  during  the  fourth  quarter  of  2022  on  rising  interest  rates,  inflation 
concerns  and  quantitative  tightening  by  central  banks.  The  tapering  and/or  unwinding  of  asset  purchases  by  central  banks, 
interest  rate  hikes,  along  with  elevated  levels  of  government  debt  issuance,  are  expected  to  provide  tailwinds  to  our  Rates 
business.

FX Volumes and Volatility

Global FX volumes were higher during 2022. Volumes for CME FX futures and options and CME EBS spot FX were 
up 24%, and 7%, respectively, and Refinitiv was up 2%. In comparison, revenue from our Fenics FX platforms increased 39%, 
while our overall FX revenues decreased by 0.5% to $299.7 million.

Equities Volumes

Global  equity  volumes  were  generally  higher  during  2022.  According  to  SIFMA  and  the  OCC,  the  average  daily 
volumes of U.S. cash equities and U.S. options were up 4% and 15%, respectively, as compared to a year earlier. Over the same 
timeframe, Eurex average daily volumes of equity derivatives were up 12%, while Euronext equity derivative index volumes 
were  up  19%.  BGC’s  equity  business  primarily  consists  of  equity  derivatives,  particularly  European  equity  derivatives.  Our 
overall revenues from Equities decreased by 5.3% to $234.5 million.

Credit Volumes

Our  Credit  business  is  impacted  by  the  level  of  global  corporate  bond  issuance  and  the  direction  of  interest  rates. 
Global credit derivative market turnover has declined over the last few years due to the introduction of rules and regulations 
around  the  clearing  of  credit  derivatives  in  the  U.S.  and  elsewhere,  along  with  non-uniform  regulation  across  different 
geographies.  In  addition,  many  of  our  large  bank  customers  continue  to  reduce  their  inventory  of  bonds  and  other  credit 
products  in  order  to  comply  with  Basel  III  and  other  international  financial  regulations.  Credit  volumes  were  mixed  during 
2022.  Primary  dealer  average  daily  volume  for  U.S.  Investment  Grade  was  up  8%  and  U.S.  High  Yield  was  down  by  6% 
according to Bloomberg and the Federal Reserve Bank of New York. In comparison, our overall Credit revenues decreased by 
5.6% to $271.4 million.

Energy and Commodities Volumes

Energy  and  commodities  volumes  were  generally  down  during  2022  compared  with  the  year  earlier.  CME  and  ICE 
energy  futures  and  options  volumes  were  down  7%  and  3%,  respectively,  as  higher  prices  and  volatility  weighed  on  certain 
energy products. In comparison, BGC’s energy and commodities revenues decreased by 1.6% to $291.7 million.

FINANCIAL OVERVIEW

Revenues

Our  revenues  are  derived  primarily  from  brokerage  commissions  charged  for  either  agency  or  matched  principal 
transactions,  fees  from  related  parties,  fees  charged  for  market  data,  analytics  and  post-trade  products,  fees  from  software 
solutions, and interest income.

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Our  Rates  business  is  focused  on  government  debt,  futures  and  currency,  and  both  listed  and  OTC  interest  rate 
derivatives, which are among the largest, most global and most actively traded markets. The main drivers of these markets are 
global macroeconomic forces such as growth, inflation, government budget policies and new issuances.

FX

The FX market is one of the largest financial markets in the world. FX transactions can either be undertaken in the spot 
market,  in  which  one  currency  is  sold  and  another  is  bought,  or  in  the  derivative  market  in  which  future  settlement  of  the 
identical  underlying  currencies  are  traded.  We  provide  full  execution  OTC  brokerage  services  in  most  major  currencies, 
including all G8 currencies, emerging market, cross and exotic options currencies.

Credit

We provide our brokerage services in a wide range of credit instruments, including asset-backed securities, convertible 

bonds, corporate bonds, credit derivatives and high yield bonds.

Energy and Commodities

We provide brokerage services for most widely traded energy and commodities products, including futures and OTC 
products  covering,  refined  and  crude  oil,  liquid  natural  gas,  coal,  electricity,  gold  and  other  precious  metals,  base  metals, 
emissions,  and  soft  commodities.  We  also  provide  brokerage  services  associated  with  the  shipping  of  certain  energy  and 
commodities products.

Insurance

We  provided  wholesale  insurance  and  reinsurance  broking  solutions  and  underwriting  services  across  the  global 
marketplace, operating through the brands Ed Broking, Besso, Piiq Risk Partners and Junge, as well as the group’s managing 
general agents Cooper Gay, Globe Underwriting and Epsilon. We sold our Insurance brokerage business on November 1, 2021 
(see Note 5—"Divestitures" to our consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for 
additional information).

Equities

We provide brokerage services in a range of markets for equity products, including cash equities, equity derivatives 

(both listed and OTC), equity index futures and options on equity products.

Fees from Related Parties

We  earn  fees  from  related  parties  for  technology  services  and  software  licenses  and  for  certain  administrative  and 
back-office  services  we  provide  to  affiliates,  particularly  from  Cantor.  These  administrative  and  back-office  services  include 
office  space,  utilization  of  fixed  assets,  accounting  services,  operational  support,  human  resources,  legal  services  and 
information technology.

Data, software and post-trade

Fenics Market Data is a supplier of real-time, tradable, indicative, end-of-day and historical market data. Our market 
data product suite includes fixed income, interest rate derivatives, credit derivatives, FX, FX options, money markets, energy 
and equity derivatives and structured market data products and services. The data are sourced from the Voice/Hybrid and fully 
electronic broking operations, as well as the market data operations, including BGC, GFI and RP Martin, among others. It is 
made available to financial professionals, research analysts and other market participants via direct data feeds and BGC-hosted 
FTP  environments,  as  well  as  via  information  vendors  such  as  Bloomberg,  Thomson  Reuters,  ICE  Data  Services,  QUICK 
Corp., and other select specialist vendors.

Through  our  software  solutions  business,  we  provide  customized  software  to  broaden  distribution  capabilities  and 
provide electronic solutions to financial market participants. The software solutions business leverages our global infrastructure, 
software,  systems,  portfolio  of  intellectual  property,  and  electronic  trading  expertise  to  provide  customers  with  electronic 
marketplaces  and  exchanges  and  real-time  auctions  to  enhance  debt  issuance  and  to  customize  trading  interfaces.  We  take 
advantage of the scalability, flexibility and functionality of our electronic trading system to enable our customers to distribute 
products  to  their  customers  through  online  offerings  and  auctions,  including  private  and  reverse  auctions,  via  our  trading 

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platform  and  global  network.  Using  screen-based  market  solutions,  customers  are  able  to  develop  a  marketplace,  trade  with 
their customers, issue debt, trade odd lots, access program trading interfaces and access our network and intellectual property. 
We provide option pricing and analysis tools that deliver price discovery that is supported with market data sourced from both 
our BGC, GFI, and Fenics trading systems.

Our Capitalab NDF Match business is an advanced matching platform that helps clients offset their fixing risk in non-
deliverable forward portfolios. Additionally, Capitalab provides compression services that are designed to bring greater capital 
and  operational  efficiency  to  the  global  derivatives  market.  It  assists  clients  in  managing  the  growing  cost  of  holding 
derivatives, while helping them to meet their regulatory mandates. Through the Swaptioniser service for portfolio compression 
of  Bilateral  and  Cleared  Interest  Rate  Swaptions,  Interest  Rate  Swaps,  Caps  and  Floors  and  FX  Products,  Capitalab  looks  to 
simplify the complexities of managing large quantities of derivatives, to help promote sustainable growth, lower systemic risk 
and  improve  resiliency  in  the  industry.  Furthermore,  as  an  approved  compression  services  provider  at  LCH,  a  combined 
multiproduct  Rates  solution  is  provided  across  the  entire  cleared  and  non-cleared  portfolio,  increasing  the  overall  efficiency, 
where  delta  offsets  can  be  leveraged  across  Rates  products  and  desks.  Additionally,  Capitalab’s  Initial  Margin  Optimization 
service  allows  participants  to  reduce  their  bilateral  initial  margin  and  CCP  IM  with  the  efficiency  of  automated  trade 
processing. 

Interest Income

We  generate  interest  income  primarily  from  the  investment  of  our  daily  cash  balances,  interest  earned  on  securities 
owned and reverse repurchase agreements. These investments and transactions are generally short-term in nature. We also earn 
interest income from employee loans, and we earn dividend income on certain marketable securities.

Other Revenues

We earn other revenues from various sources, including underwriting and advisory fees.

Expenses

Compensation and Employee Benefits

The majority of our operating costs consist of cash and non-cash compensation expenses, which include base salaries, 
broker bonuses based on broker production, guaranteed bonuses, other discretionary bonuses, and all related employee benefits 
and  taxes.  Our  employees  consist  of  brokers,  salespeople,  executives  and  other  administrative  support.  The  majority  of  our 
brokers receive a base salary and a formula bonus based primarily on a pool of brokers’ production for a particular product or 
sales desk, as well as on the individual broker’s performance. Members of our sales force receive either a base salary or a draw 
on commissions. Less experienced salespeople typically receive base salaries and bonuses.

As  part  of  our  compensation  plans,  certain  employees  are  granted  LPUs  in  BGC  Holdings  which  generally  receive 
quarterly allocations of net income, that are cash distributed on a quarterly basis and generally contingent upon services being 
provided by the unit holders. As prescribed in U.S. GAAP guidance, the quarterly allocations of net income on such LPUs are 
reflected as a component of compensation expense under “Equity-based compensation and allocations of net income to limited 
partnership units and FPUs” in our consolidated statements of operations.

Certain  of  these  LPUs  entitle  the  holders  to  receive  post-termination  payments  equal  to  the  notional  amount  in  four 
equal yearly installments after the holder’s termination. These limited partnership units are accounted for as post-termination 
liability awards under U.S. GAAP guidance, which requires that we record an expense for such awards based on the change in 
value at each reporting period and include the expense in our consolidated statements of operations as part of “Equity-based 
compensation  and  allocations  of  net  income  to  limited  partnership  units  and  FPUs.”  The  liability  for  LPUs  with  a  post-
termination payout amount is included in “Accrued compensation” on our consolidated statements of financial condition.

Certain  LPUs  are  granted  exchangeability  or  are  redeemed  in  connection  with  the  grant  of  shares  of  our  Class  A 
common  stock  on  a  one-for-one  basis  (subject  to  adjustment).  At  the  time  exchangeability  or  redemption  is  granted,  the 
Company  recognizes  an  expense  based  on  the  fair  value  of  the  award  on  that  date,  which  is  included  in  “Equity-based 
compensation  and  allocations  of  net  income  to  limited  partnership  units  and  FPUs”  in  our  consolidated  statements  of 
operations.

Certain LPUs have a stated vesting schedule and do not receive quarterly allocations of net income. The grant-date fair 
value  of  these  LPUs  is  amortized  to  expense  ratably  over  the  awards’  expected  vesting  periods.  The  non-cash  equity-based 
amortization  expense  is  reflected  as  a  component  of  “Equity-based  compensation  and  allocations  of  net  income  to  limited 
partnership units and FPUs” in our consolidated statements of operations.

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In  addition,  Preferred  Units  are  granted  in  connection  with  the  grant  of  certain  LPUs,  such  as  PSUs,  which  may  be 
granted exchangeability or redemption in connection with the grant of shares of common stock to cover the withholding taxes 
owed by the unit holder upon such exchange or redemption. This is an acceptable alternative to the common practice among 
public  companies  of  issuing  the  gross  amount  of  shares  to  employees,  subject  to  cashless  withholding  of  shares  to  pay 
applicable withholding taxes. Each quarter, the net profits of BGC Holdings and Newmark Holdings are allocated to Preferred 
Units  at  a  rate  of  either  0.6875%  (which  is  2.75%  per  calendar  year)  or  such  other  amount  as  set  forth  in  the  award 
documentation.  The  Preferred  Distribution  is  deducted  before  the  calculation  and  distribution  of  the  quarterly  partnership 
distribution for the remaining partnership interests. The Preferred Units are not entitled to participate in partnership distributions 
other than with respect to the Preferred Distribution. Preferred Units may not be made exchangeable into our Class A common 
stock and are only entitled to the Preferred Distribution, and accordingly they are not included in our fully diluted share count. 
The  quarterly  allocations  of  net  income  on  Preferred  Units  are  reflected  in  compensation  expense  under  “Equity-based 
compensation  and  allocations  of  net  income  to  limited  partnership  units  and  FPUs”  in  our  consolidated  statements  of 
operations.

In addition, as part of our compensation plan, certain employees are granted RSUs. The grant-date fair value of RSUs 
is  amortized  to  expense  ratably  over  the  awards’  stated  vesting  periods.  The  non-cash  equity-based  amortization  expense  is 
reflected as a component of “Equity-based compensation and allocations of net income to limited partnership units and FPUs” 
in our consolidated statements of operations.

We  have  entered  into  various  agreements  with  certain  of  our  employees  and  partners,  whereby  these  individuals 
receive loans which may be either wholly or in part repaid from the distribution earnings that the individual receives on some or 
all of their LPUs and from proceeds of the sale of the employees' shares of BGC Class A common stock, or may be forgiven 
over a period of time. The forgivable portion of these loans is recognized as compensation expense over the life of the loan. 
From time to time, we may also enter into agreements with employees and partners to grant bonus and salary advances or other 
types of loans. These advances and loans are repayable in the timeframes outlined in the underlying agreements.

In addition, we also enter into deferred compensation agreements with employees providing services to us. The costs 
associated with such plans are generally amortized over the period in which they vest. See Note 18—“Compensation” to our 
Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K for more information.

Other Operating Expenses

We have various other operating expenses. We incur leasing, equipment and maintenance expenses for our businesses 
worldwide. We also incur selling and promotion expenses, which include entertainment, marketing and travel-related expenses. 
We  incur  communication  expenses  for  voice  and  data  connections  with  our  clients,  clearing  agents  and  general  usage; 
professional and consulting fees for legal, audit and other special projects; and interest expense related to short-term operational 
funding needs, and notes payable and collateralized borrowings.

Primarily in the U.S., we pay fees to Cantor for performing certain administrative and other support services, including 
charges for occupancy of office space, utilization of fixed assets and accounting, operations, human resources, legal services 
and technology infrastructure support. Management believes that these charges are a reasonable reflection of the utilization of 
services rendered. However, the expenses for these services are not necessarily indicative of the expenses that would have been 
incurred if we had not obtained these services from Cantor. In addition, these charges may not reflect the costs of services we 
may  receive  from  Cantor  in  the  future.  We  incur  commissions  and  floor  brokerage  fees  for  clearing,  brokerage  and  other 
transactional expenses for clearing and settlement services. We also incur various other normal operating expenses.

Other Income (Losses), Net

Gain (Loss) on Divestiture and Sale of Investments

Gain (loss) on divestiture and sale of investments represents the gain or loss we recognize for the divestiture or sale of 

our investments.

Gains (Losses) on Equity Method Investments

Gains (losses) on equity method investments represent our pro-rata share of the net gains (losses) on investments over 

which we have significant influence but which we do not control.

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Other Income (Loss)

Other Income (loss) is primarily comprised of gains or losses related to fair value adjustments on investments carried 
under  the  alternative  method.  Other  Income  (loss)  also  includes  realized  and  unrealized  gains  or  losses  related  to  sales  and 
mark-to-market adjustments on Marketable securities and any related hedging transactions when applicable. Acquisition-related 
fair value adjustments of contingent consideration and miscellaneous recoveries are also included in Other Income (loss).

Provision (Benefit) for Income Taxes

We incur income tax expenses or benefit based on the location, legal structure and jurisdictional taxing authorities of 
each of our subsidiaries. Certain of the Company’s entities are taxed as U.S. partnerships and are subject to the UBT in New 
York City. U.S. federal and state income tax liability or benefit related to the partnership income or loss, with the exception of 
UBT, rests with the partners (see Note 2—“Limited Partnership Interests in BGC Holdings and Newmark Holdings” in Part II, 
Item  8  of  this  Annual  Report  on  Form  10-K  for  discussion  of  partnership  interests),  rather  than  the  partnership  entity.  The 
Company’s  consolidated  financial  statements  include  U.S.  federal,  state  and  local  income  taxes  on  the  Company’s  allocable 
share of the U.S. results of operations. Outside of the U.S., we operate principally through subsidiary corporations subject to 
local income taxes.

REGULATORY ENVIRONMENT

See  “Regulation”  in  Part  I,  Item  1  of  this  Annual  Report  on  Form  10-K  for  additional  information  related  to  our 

regulatory environment.

LIQUIDITY

See “Liquidity and Capital Resources” herein for information related to our liquidity and capital resources.

HIRING AND ACQUISITIONS

Key drivers of our revenue are front-office producer headcount and average revenue per producer. We believe that our 
strong  technology  platform  and  unique  compensation  structure  have  enabled  us  to  use  both  acquisitions  and  recruiting  to 
profitably  grow  at  a  faster  rate  than  our  largest  competitors  since  our  formation  in  2004.  We  reduced  front  office  headcount 
with a focus on underperforming or less profitable brokers, which helped improve our average revenue per producer.

We have invested significantly through acquisitions and the hiring of new brokers, salespeople, managers, technology 
professionals  and  other  front-office  personnel.  The  business  climate  for  these  acquisitions  has  been  competitive,  and  it  is 
expected  that  these  conditions  will  persist  for  the  foreseeable  future.  We  have  been  able  to  attract  businesses  and  brokers, 
salespeople, managers, technology professionals and other front-office personnel to our platform as we believe they recognize 
that we have the scale, technology, experience and expertise to succeed.

Our  average  revenue  per  front-office  employee  has  historically  declined  year-over-year  for  the  period  immediately 
following  significant  headcount  increases,  and  the  additional  brokers  and  salespeople  generally  achieve  significantly  higher 
productivity levels in their second or third year with the Company. As of December 31, 2022, our front-office headcount was 
1,985 brokers, salespeople, managers, technology professionals and other front-office personnel, down 6.0% from 2,100 a year 
ago. Compared to the prior year, average revenue per front-office employee for the year ended December 31, 2022 increased by 
6.1% to $861 thousand from $811 thousand compared to the prior period.

The  laws  and  regulations  passed  or  proposed  on  both  sides  of  the  Atlantic  concerning  OTC  trading  seem  likely  to 
favor increased use of technology by all market participants, and are likely to accelerate the adoption of both Hybrid and Fully 
Electronic execution. We believe these developments will favor the larger inter-dealer brokers over smaller, non-public local 
competitors, as the smaller players generally do not have the financial resources to invest the necessary amounts in technology. 
We believe this will lead to further consolidation across the wholesale financial brokerage industry, and thus allow us to grow 
profitably.

Since 2020, our acquisitions have included Algomi and the Futures Exchange Group.

On  July  30,  2021,  we  completed  the  purchase  of  the  Futures  Exchange  Group  from  Cantor,  which  represents  our 

futures exchange and related clearinghouse.

On March 6, 2020, we completed the acquisition of Algomi, a software company operating under a SaaS model that 
provides  technology  to  bond  market  participants  to  improve  their  workflow  and  liquidity  by  data  aggregation,  pre-trade 
information analysis and execution facilitation.

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FINANCIAL HIGHLIGHTS

Full year 2022 compared to full year 2021:

Income from operations before income taxes was $97.5 million compared to $176.5 million in the prior year period.

Total revenues decreased $220.1 million, or 10.9%, to $1,795.3 million. This decrease was largely as a result of the 
sale of the Insurance brokerage business during the fourth quarter of 2021, which generated $178.3 million in revenues in the 
prior  year  period.  Brokerage  revenues,  excluding  the  Insurance  brokerage  business,  decreased  $44.8  million,  or  2.6%,  to 
$1,646.8 million, which was driven by a decrease across all products.

Total expenses decreased $461.1 million, or 21.2%, to $1,717.1 million compared to the prior year period, primarily 
due to a $423.3 million decrease in total compensation expenses, primarily driven by the sale of the Insurance business during 
the fourth quarter of 2021, which included one-off compensation charges and sale-related expenses totaling $168.6 million. The 
$37.8  million  decrease  in  non-compensation  expenses  was  primarily  driven  by  lower  occupancy  and  equipment  expense 
primarily due to the sale of the Insurance brokerage business, lower interest expense due to the repayment in full of the 5.125% 
Senior Notes on May 27, 2021, as well as lower communications expense, and lower commissions and floor brokerage expense 
which  was  primarily  due  to  lower  revenues.  These  expense  reductions  were  partially  offset  by  higher  selling  and  promotion 
charges,  as  COVID-19  restrictions  have  relaxed  across  many  of  the  major  geographies  in  which  we  operate,  as  well  as  an 
increase in other expenses which was primarily driven by reserves recorded in the year ended December 31, 2022 for potential 
losses associated with Russia's Invasion of Ukraine, and an increase in settlements and other provisions.

Total  other  income  (losses),  net  decreased  $320.1  million,  or  94.3%,  to  $19.3  compared  to  the  prior  year  period, 
primarily  related  to  a  $312.9  million  gain  on  the  sale  of  the  Insurance  brokerage  business  in  the  fourth  quarter  of  2021,  a 
decrease related to mark-to-market movements on other assets, and a decrease related to income from other recoveries, partially 
offset by an increase related to gains on equity method investments.

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Interest and Dividend Income

Interest and dividend income decreased by $1.0 million, or 4.4%, to $21.0 million for the year ended December 31, 
2022 as compared to the year ended December 31, 2021. This decrease was primarily driven by a decrease in dividend income 
and lower interest income earned on employee loans, partially offset by an increase in interest income on government bonds 
and bank deposits driven by higher interest rates. 

Other Revenues

Other  revenues  decreased  by  $2.5  million,  or  13.4%  to  $16.4  million  for  the  year  ended  December  31,  2022  as 
compared to the year ended December 31, 2021. This was primarily driven by a decrease in revenues from underwriting fees 
and placement fees, partially offset by an increase in consulting income for Poten & Partners.

Expenses

Compensation and Employee Benefits

Compensation  and  employee  benefits  expense  decreased  by  $418.2  million,  or  32.9%,  to  $853.2  million  for  the 
year ended December 31, 2022 as compared to the year ended December 31, 2021. The primary driver of the decrease was due 
to the sale of the Insurance brokerage business during the fourth quarter of 2021, which included one-off compensation charges 
and sale-related expenses totaling $168.6 million, as well as lower commission revenues on variable compensation, increased 
automation  related  to  the  transition  to  Fully  Electronic  brokerage  services,  and  the  positive  FX  impact  on  our  U.K.  and 
European operations.

Equity-Based Compensation and Allocations of Net Income to Limited Partnership Units and FPUs

Equity-based  compensation  and  allocations  of  net  income  to  limited  partnership  units  and  FPUs  decreased  by 
$5.1 million, or 2.0%, to $251.1 million for the year ended December 31, 2022 as compared to the year ended December 31, 
2021. This was driven by a decrease in allocations of net income to limited partnership units and FPUs and a decrease in LPU 
amortization expense, partially offset by an increase in grants of exchangeability and issuance of Class A common stock.

Occupancy and Equipment

Occupancy  and  equipment  expense  decreased  by  $30.8  million,  or  16.4%,  to  $157.5  million  for  the  year  ended 
December  31,  2022  as  compared  to  the  year  ended  December  31,  2021.  This  decrease  was  primarily  due  to  the  sale  of  the 
Insurance brokerage business during the fourth quarter of 2021, as well as a decrease in other rent and occupancy expenses.

Fees to Related Parties

Fees to related parties increased by $1.6 million, or 6.8%, to $25.7 million for the year ended December 31, 2022 as 
compared to the year ended December 31, 2021. Fees to related parties are allocations paid to Cantor for administrative and 
support services, such as accounting, occupancy, and legal.

Professional and Consulting Fees

Professional and consulting fees increased by $0.9 million, or 1.3%, to $68.8 million for the year ended December 31, 
2022 as compared to the year ended December 31, 2021, primarily driven by an increase in legal and consulting fees, partially 
offset by a decrease related to the sale of the Insurance brokerage business during the fourth quarter of 2021.

Communications

Communications expense decreased by $9.4 million, or 8.0%, to $108.1 million for the year ended December 31, 2022 
as  compared  to  the  year  ended  December  31,  2021,  which  was  primarily  driven  by  decreases  in  various  terminal  and  line 
service costs across market data and communications.

Selling and Promotion

Selling  and  promotion  expense  increased  by  $11.2  million,  or  29.3%,  to  $49.2  million  for  the  year  ended 
December 31, 2022 as compared to the year ended December 31, 2021, as COVID-19 restrictions have relaxed across many of 
the major geographies in which BGC operates.

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Commissions and Floor Brokerage

Commissions  and  floor  brokerage  expense  decreased  by  $6.4  million,  or  9.9%,  to  $58.3  million  for  the  year  ended 
December  31,  2022  as  compared  to  the  year  ended  December  31,  2021.  Commissions  and  floor  brokerage  expense  tends  to 
move in line with brokerage revenues.

Interest Expense

Interest  expense  decreased  by  $11.4  million,  or  16.4%,  to  $57.9  million  for  the  year  ended  December  31,  2022  as 
compared to the year ended December 31, 2021, primarily driven by the fact that the 5.125% Senior Notes were repaid in May 
2021, a decrease in interest expense related to the borrowings on the Revolving Credit Agreement, and a decrease in interest 
expense due to the sale of the Insurance brokerage business during the fourth quarter of 2021. 

Other Expenses

Other  expenses  increased  by  $6.5  million,  or  8.1%,  to  $87.4  million  for  the  year  ended  December  31,  2022  as 
compared  to  the  year  ended  December  31,  2021,  which  was  primarily  related  to  an  increase  in  legal  settlements,  reserves 
recorded in the year ended December 31, 2022 for potential losses associated with Russia's Invasion of Ukraine, an increase in 
other provisions, and an increase in revaluation expense. This was partially offset by a decrease in expenses related to the sale 
of the Insurance brokerage business during the fourth quarter of 2021, a decrease in amortization expense on intangible assets 
and a decrease in Charity Day contributions expense.

Other Income (Losses), Net

Gains (Losses) on Divestitures and Sale of Investments

For the year ended December 31, 2022 we had a loss of $1.0 million on divestitures. For the year ended December 31, 

2021, we had a gain of $312.9 million as a result of the sale of the Insurance brokerage business.

Gains (Losses) on Equity Method Investments

Gains (losses) on equity method investments increased by $4.2 million, to a gain of $10.9 million, for the year ended 

December 31, 2022 as compared to a gain of $6.7 million for the year ended December 31, 2021. 

Other Income (Loss)

Other income (loss) decreased by $10.3 million, or 52.4%, to $9.4 million for the year ended December 31, 2022 as 
compared to the year ended December 31, 2021, primarily driven by a decrease related to mark-to-market movements on other 
assets and investments, and no income for the year ended December 31, 2022 related to the Insurance brokerage business due to 
the sale in the fourth quarter of 2021, partially offset by an increase related to fair value adjustments on acquisition earn-outs.

Provision (Benefit) for Income Taxes

Provision  (benefit)  for  income  taxes  increased  by  $15.6  million,  or  67.7%,  to  $38.6  million  for  the  year  ended 
December  31,  2022  as  compared  to  the  year  ended  December  31,  2021.  The  increase  was  primarily  driven  by:  (i)  the  non-
recurring nontaxable gain on the 2021 disposition of the Insurance brokerage business; (ii) a benefit in the prior year from the 
revaluation  of  deferred  taxes  due  to  enacted  rate  changes  in  the  U.K.  and  the  ownership  interest  change  in  the  operating 
partnership; and (iii) a change in the geographical and business mix of earnings, which can impact our consolidated effective 
tax rate from period-to-period. 

Net Income (Loss) Attributable to Noncontrolling Interest in Subsidiaries

Net  income  (loss)  attributable  to  noncontrolling  interest  in  subsidiaries  decreased  by  $19.3  million,  or  65.6%,  to 

$10.2 million for the year ended December 31, 2022 as compared to the year ended December 31, 2021.

102

Year Ended December 31, 2021 Compared to Year Ended December 31, 2020

Revenues

Brokerage Revenues

Total brokerage revenues decreased by $49.6 million, or 2.6%, to $1,869.7 million for the year ended December 31, 
2021  as  compared  to  the  year  ended  December  31,  2020.  Commission  revenues  decreased  by  $25.8  million,  or  1.6%,  to 
$1,541.9  million  for  the  year  ended  December  31,  2021  as  compared  to  the  year  ended  December  31,  2020.  Principal 
transactions  revenues  decreased  by  $23.9  million,  or  6.8%,  to  $327.8  million  for  the  year  ended  December  31,  2021  as 
compared to the year ended December 31, 2020.

The  decrease  in  total  brokerage  revenues  was  primarily  driven  by  decreases  in  Credit,  FX,  Equities,  and  Insurance, 

partially offset by an increase in revenues from Rates, and Energy and commodities.

Our Credit revenues decreased by $42.3 million, or 12.8%, to $287.6 million for the year ended December 31, 2021, as 

compared to the year ended December 31, 2020. This decrease was mainly due to lower industry wide volumes.

Our FX revenues decreased by $13.9 million, or 4.4%, to $301.3 million for the year ended December 31, 2021, as 

compared to the year ended December 31, 2020. This decrease was primarily driven by lower industry volumes.

Our  brokerage  revenues  from  Equities  decreased  by  $7.0  million,  or  2.8%,  to  $247.7  million  for  the  year  ended 
December 31, 2021, as compared to the year ended December 31, 2020. This decrease was primarily driven by lower volumes 
across European equity derivatives.

Our  brokerage  revenues  from  Insurance  decreased  by  $4.6  million,  or  2.5%,  to  $178.1  million  for  the  year  ended 
December  31,  2021,  as  compared  to  the  year  ended  December  31,  2020.  This  decrease  was  primarily  due  to  the  sale  of  the 
Insurance brokerage business on November 1, 2021.

Our  brokerage  revenues  from  Rates  increased  by  $14.4  million,  or  2.6%,  to  $558.5  million  for  the  year  ended 
December 31, 2021, as compared to the year ended December 31, 2020. The increase in Rates revenues was primarily driven by 
improved activity across U.S. government bonds, inflation products, listed rates, and emerging market rates.

Our brokerage revenues from Energy and commodities increased by $3.8 million, or 1.3%, to $296.5 million for the 
year  ended  December  31,  2021,  as  compared  to  the  year  ended  December  31,  2020.  This  increase  was  primarily  driven  by 
BGC's leading environmental brokerage business and heightened volatility across the energy complex.

Fees from Related Parties

Fees from related parties decreased by $10.9 million, or 42.3% to $14.9 million for the year ended December 31, 2021 
as compared to the year ended December 31, 2020. This was primarily driven by a decrease in technology service revenues in 
connection with services provided to Cantor.

Data, Software and Post-Trade

Data,  software  and  post-trade  revenues  increased  by  $8.0  million,  or  9.8%,  to  $90.0  million  for  the  year  ended 
December 31, 2021 as compared to the year ended December 31, 2020. This increase was primarily driven by new business 
contracts and Lucera expanding its client base.

Interest and Dividend Income

Interest and dividend income increased by $9.6 million, or 78.2%, to $22.0 million for the year ended December 31, 
2021 as compared to the year ended December 31, 2020. This increase was primarily driven by an increase in dividend income 
and higher interest income earned on employee loans.

Other Revenues

Other revenues increased by $1.5 million, or 8.3% to $18.9 million for the year ended December 31, 2021 as compared 
to the year ended December 31, 2020. This increase was primarily driven by an increase in revenues from underwriting fees, 
partially offset by a decrease in both consulting and sublease income for Poten & Partners.

103

Expenses

Compensation and Employee Benefits

Compensation  and  employee  benefits  expense  increased  by  $138.8  million,  or  12.3%,  to  $1,271.3  million  for  the 
year ended December 31, 2021 as compared to the year ended December 31, 2020. This increase was primarily due to the sale 
of the Insurance brokerage business, which included one-off compensation charges and sale related expenses totaling $168.6 
million,  the  majority  of  which  was  non-cash,  partially  offset  by  the  impact  of  lower  commission  revenues  on  variable 
compensation.

Equity-Based Compensation and Allocations of Net Income to Limited Partnership Units and FPUs

Equity-based  compensation  and  allocations  of  net  income  to  limited  partnership  units  and  FPUs  increased  by 
$72.6 million, or 39.6%, to $256.2 million for the year ended December 31, 2021 as compared to the year ended December 31, 
2020.  This  was  primarily  driven  by  an  increase  in  grants  of  exchangeability  and  issuance  of  Class  A  common  stock  and  an 
increase in allocations of net income to limited partnership units and FPUs due to the gain on sale of the Insurance brokerage 
business.

Occupancy and Equipment

Occupancy and equipment expense decreased by $4.5 million, or 2.3%, to $188.3 million for the year ended December 
31,  2021  as  compared  to  the  year  ended  December  31,  2020.  This  decrease  was  primarily  driven  by  a  decrease  in  rent  and 
occupancy  expenses,  software  licenses  and  maintenance,  and  decreases  in  office  and  utilities  expenses,  partially  offset  by  an 
increase in fixed asset impairments and an increase in amortization expense on developed software.

Fees to Related Parties

Fees to related parties increased by $0.4 million, or 1.7%, to $24.0 million for the year ended December 31, 2021 as 
compared to the year ended December 31, 2020. Fees to related parties are allocations paid to Cantor for administrative and 
support services.

Professional and Consulting Fees

Professional and consulting fees decreased by $6.2 million, or 8.4%, to $67.9 million for the year ended December 31, 
2021 as compared to the year ended December 31, 2020. This decrease was primarily driven by a decrease in consulting fees, 
partially offset by an increase in legal fees.

Communications

Communications expense decreased by $4.1 million, or 3.4%, to $117.5 million for the year ended December 31, 2021 
as  compared  to  the  year  ended  December  31,  2020.  As  a  percentage  of  total  revenues,  communications  expense  remained 
relatively unchanged from the prior year period.

Selling and Promotion

Selling and promotion expense decreased by $0.2 million, or 0.5%, to $38.0 million for the year ended December 31, 

2021 as compared to the year ended December 31, 2020.

Commissions and Floor Brokerage

Commissions  and  floor  brokerage  expense  increased  by  $5.3  million,  or  9.0%,  to  $64.7  million  for  the  year  ended 
December 31, 2021 as compared to the year ended December 31, 2020. This increase was primarily driven by higher exchange 
fees in the year ended December 31, 2021 and an increase in trades executed compared to the year ended December 31, 2020.

Interest Expense

Interest  expense  decreased  by  $7.3  million,  or  9.5%,  to  $69.3  million  for  the  year  ended  December  31,  2021  as 
compared to the year ended December 31, 2020. This decrease was primarily driven by lower interest expense related to the 
5.125% Senior Notes, which were repaid in May 2021, lower interest expense related to borrowings on the Revolving Credit 
Agreement, partially offset by interest expense related to the 4.375% Senior Notes issued in July 2020.

104

Other Expenses

Other  expenses  decreased  by  $8.2  million,  or  9.2%,  to  $80.9  million  for  the  year  ended  December  31,  2021  as 
compared  to  the  year  ended  December  31,  2020,  which  was  primarily  related  to  a  decrease  in  amortization  expense  on 
intangible  assets,  a  decrease  in  other  provisions,  and  a  decrease  in  expenses  related  to  the  sale  of  the  Insurance  brokerage 
business during the fourth quarter of 2021, partially offset by an increase in settlements and an increase related to Charity Day 
contributions.

Other Income (Losses), Net

Gains (Losses) on Divestitures and Sale of Investments

For  the  year  ended  December  31,  2021  we  had  a  gain  of  $312.9  million  as  a  result  of  the  sale  of  the  Insurance 

brokerage business. For the year ended December 31, 2020, we had a gain of $394 thousand on divestitures.

Gains (Losses) on Equity Method Investments

Gains (losses) on equity method investments increased by $1.7 million, to a gain of $6.7 million, for the year ended 
December  31,  2021  as  compared  to  a  gain  of  $5.0  million  for  the  year  ended  December  31,  2020.  Gains  (losses)  on  equity 
method  investments  represent  our  pro-rata  share  of  the  net  gains  or  losses  on  investments  over  which  we  have  significant 
influence, but which we do not control.

Other Income (Loss)

Other income (loss) increased by $18.1 million, to $19.7 million for the year ended December 31, 2021 as compared to 
the year ended December 31, 2020. This was primarily driven by an increase related to mark-to-market movements on other 
assets, a gain recognized on a litigation resolution during the year ended December 31, 2021, an increase due to an impairment 
of an equity method investment recorded in the year ended December 31, 2020 compared to no impairment recorded in the year 
ended  December  31,  2021,  an  increase  in  recoveries  related  to  a  settlement  recognized  in  the  fourth  quarter  of  2021,  and  an 
increase  related  to  fair  value  adjustments  on  investments  carried  under  the  measurement  alternative.  These  increases  were 
partially offset by a decrease related to COVID-19 recoveries in the year ended December 31, 2020.

Provision (Benefit) for Income Taxes

Provision (benefit) for income taxes increased by $1.7 million, or 8.0%, to $23.0 million for the year ended December 
31, 2021 as compared to the year ended December 31, 2020. This increase was primarily driven by an increase in both pre-tax 
earnings and the ownership interest in the operating partnership, partially offset by the nontaxable gain on the disposition of the 
Insurance  brokerage  business  as  well  as  the  release  of  historical  tax  positions  related  to  periods  for  which  the  statute  of 
limitations has expired. In addition, the change in the geographical and business mix of earnings can impact our consolidated 
effective tax rate from period-to-period.

Net Income (Loss) Attributable to Noncontrolling Interest in Subsidiaries

Net income (loss) attributable to noncontrolling interest in subsidiaries increased by $23.6 million, to $29.5 million for 

the year ended December 31, 2021 as compared to the year ended December 31, 2020.

105

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(cid:16)(cid:15)(cid:22)

investment policy guidelines, including policies relating to ratings. Cantor will earn a spread between the rate it receives from 
the short-term note issuer and the rate it pays to us on any investments in this program. This spread will be no greater than the 
spread earned by Cantor for placement of any other commercial paper note in the program. As of December 31, 2022 and 2021, 
we had no investments in the program.

Funding

Our  funding  base  consists  of  longer-term  capital  (equity  and  notes  payable),  collateralized  financings,  shorter-term 
liabilities  and  accruals  that  are  a  natural  outgrowth  of  specific  assets  and/or  our  business  model,  such  as  matched  fails  and 
accrued  compensation.  We  have  limited  need  for  short-term  unsecured  funding  in  our  regulated  entities  for  their  brokerage 
business. Contingent liquidity needs are largely limited to potential cash collateral that may be needed to meet clearing bank, 
clearinghouse,  and  exchange  margins  and/or  to  fund  fails.  Current  cash  and  cash  equivalent  balances  exceed  our  potential 
normal course contingent liquidity needs. We believe that cash and cash equivalents in and available to our largest regulated 
entities, inclusive of financing provided by clearing banks and cash segregated under regulatory requirements, is adequate for 
potential  cash  demands  of  normal  operations,  such  as  margin  or  financing  of  fails.  We  expect  our  operating  activities  going 
forward  to  generate  adequate  cash  flows  to  fund  normal  operations,  share  and  unit  repurchases  and  redemptions,  and  any 
dividends  paid  pursuant  to  our  dividend  policy.  However,  we  continually  evaluate  opportunities  for  growth  and  to  further 
enhance  our  strategic  position,  including,  among  other  things,  acquisitions,  strategic  alliances  and  joint  ventures  potentially 
involving all types and combinations of equity, debt and acquisition alternatives. As a result, we may need to raise additional 
funds to:

•

•

•

•

•

increase the regulatory net capital necessary to support operations;

support continued growth in our businesses;

effect acquisitions, strategic alliances, joint ventures and other transactions;

develop new or enhanced products, services and markets; and

respond to competitive pressures.

Acquisitions  and  financial  reporting  obligations  related  thereto  may  impact  our  ability  to  access  longer  term  capital
markets funding on a timely basis and may necessitate greater short-term borrowings in the interim. This may impact our credit 
rating or our costs of borrowing. We may need to access short-term capital sources to meet business needs from time to time, 
including,  but  not  limited  to,  conducting  operations;  hiring  or  retaining  brokers,  salespeople,  managers,  technology 
professionals and other front-office personnel; financing acquisitions; and providing liquidity, including in situations where we 
may not be able to access the capital markets in a timely manner when desired by us. Accordingly, we cannot guarantee that we 
will be able to obtain additional financing when needed on terms that are acceptable to us, if at all. In addition, as a result of 
regulatory  actions,  our  registration  statements  under  the  Securities  Act  will  be  subject  to  SEC  review  prior  to  effectiveness, 
which may lengthen the time required for us to raise capital, potentially reducing our access to the capital markets or increasing 
our cost of capital.

As discussed above, our liquidity remains strong at $524.3 million as of December 31, 2022, which can be used for 
share  and  unit  repurchases  and  redemptions,  dividends  and  distributions,  new  hires,  tax  payments,  ordinary  movements  in 
working capital, and our continued investment in Fenics Growth Platforms.

On  November  1,  2021,  BGC  closed  the  sale  of  its  Insurance  brokerage  business  to  the  Ardonagh  Group  for  gross 
proceeds  of  $534.9  million,  subject  to  limited  post-closing  adjustments.  The  investment  in  the  Insurance  brokerage  business 
generated  an  internal  rate  of  return  of  21.2%  for  our  shareholders.  The  proceeds  from  the  Insurance  Business  Disposition 
provided us with significant resources to continue repurchasing shares and to accelerate Fenics growth. Since the announced 
sale of the Insurance brokerage business in May 2021, BGC has repurchased and redeemed 99.8 million shares of BGC Class A 
common stock and LPUs as of December 31, 2022. In addition, a portion of these proceeds was used to fully repay the $300.0 
million  outstanding  borrowings  under  the  Company's  Revolving  Credit  Agreement  on  November  1,  2021,  which  had  been 
borrowed earlier in 2021. This repayment along with the maturity of the 5.125% Senior Notes, which were paid in full on May 
27, 2021, reduced our outstanding Notes payable and other borrowings.

On  February  24,  2023,  our  Board  declared  a  $0.01  dividend  for  the  fourth  quarter  of  2022.  Additionally,  BGC 
Holdings continues to have reduced distributions to or on behalf of its partners. The distributions to or on behalf of partners will 
at  least  cover  their  related  tax  payments.  Whether  any  given  post-tax  amount  is  equivalent  to  the  amount  received  by  a 
stockholder also on an after-tax basis depends upon stockholders’ and partners’ domiciles and tax status. Our current capital 
allocation  priorities  are  to  return  capital  to  stockholders  and  to  continue  investing  in  our  high  growth  Fenics  businesses. 
Historically, we were deeply dividend-centric; going forward, we plan to prioritize share and unit repurchases over dividends 
and distributions.

108

Notes Payable, Other and Short-term Borrowings

Unsecured Senior Revolving Credit Agreement

On  November  28,  2018,  we  entered  into  the  Revolving  Credit  Agreement  with  Bank  of  America,  N.A.,  as 
administrative  agent,  and  a  syndicate  of  lenders,  which  replaced  the  existing  committed  unsecured  senior  revolving  credit 
agreement. The maturity date of the Revolving Credit Agreement was November 28, 2020 and the maximum revolving loan 
balance was $350.0 million. Borrowings under this Revolving Credit Agreement bore interest at either LIBOR or a defined base 
rate  plus  additional  margin.  On  December  11,  2019,  we  entered  into  an  amendment  to  the  Revolving  Credit  Agreement. 
Pursuant to the amendment, the maturity date was extended to February 26, 2021. On February 26, 2020, the Company entered 
into a second amendment to the Revolving Credit Agreement, pursuant to which, the maturity date was extended by two years 
to February 26, 2023. The size of the Revolving Credit Agreement, along with the interest rate on the borrowings therefrom, 
remained unchanged. On November 1, 2021, the Company repaid in full the $300.0 million borrowings outstanding under the 
Revolving Credit Agreement, which had been borrowed earlier in 2021. On March 10, 2022, we entered into an amendment 
and  restatement  of  the  senior  unsecured  revolving  credit  agreement,  pursuant  to  which,  the  maturity  date  was  extended  to 
March 10, 2025, the size of the credit facility was increased to $375.0 million, and borrowings under this agreement will bear 
interest based on either SOFR or a defined base rate plus additional margin. As of December 31, 2022 and 2021, there were no 
borrowings outstanding under the Revolving Credit Agreement. From January 1, 2023 through March 1, 2023, the Company 
drew  down  $70.0  million  from  its  Revolving  Credit  Agreement.  This  amount  currently  carries  an  interest  rate  of  6.4%.  Our 
liquidity remains strong, and was $524.3 million as of December 31, 2022, as discussed below.

5.125% Senior Notes

On May 27, 2016, we issued an aggregate of $300.0 million principal amount of 5.125% Senior Notes, which matured 
on May 27, 2021. The 5.125% Senior Notes were general senior unsecured obligations of the Company. The 5.125% Senior 
Notes  bore  interest  at  a  rate  of  5.125%  per  year,  payable  in  cash  on  May  27  and  November  27  of  each  year,  commencing 
November 27, 2016 and ending on the maturity date. Prior to maturity, on August 5, 2020, the Company commenced a cash 
tender offer for any and all $300.0 million outstanding aggregate principal amount of its 5.125% Senior Notes. On August 11, 
2020,  the  Company’s  cash  tender  offer  expired  at  5:00  p.m.,  New  York  City  time.  As  of  the  expiration  time,  $44.0  million 
aggregate principal amount of the 5.125% Senior Notes were validly tendered. These notes were redeemed on the settlement 
date of August 14, 2020. The Company retained CF&Co as one of the dealer managers for the tender offer. As a result of this 
transaction, $14 thousand in dealer management fees were paid to CF&Co. Cantor tendered $15.0 million of such senior notes 
in the tender offer.

The initial carrying value of the 5.125% Senior Notes was $295.8 million, net of the discount and debt issuance costs 

of $4.2 million, of which $0.5 million were underwriting fees payable to CF&Co.

On  August  16,  2016,  we  filed  a  Registration  Statement  on  Form  S-4  which  was  declared  effective  by  the  SEC  on 
September 13, 2016. On September 15, 2016, BGC launched an exchange offer in which holders of the 5.125% Senior Notes, 
issued in a private placement on May 27, 2016, could exchange such notes for new registered notes with substantially identical 
terms. The exchange offer closed on October 12, 2016, at which point the initial 5.125% Senior Notes were exchanged for new 
registered  notes  with  substantially  identical  terms.  On  May  27,  2021,  we  repaid  the  remaining  $256.0  million  principal  plus 
accrued interest on our 5.125% Senior Notes.

5.375% Senior Notes

On July 24, 2018, we issued an aggregate of $450.0 million principal amount of 5.375% Senior Notes. The 5.375% 
Senior  Notes  are  general  senior  unsecured  obligations  of  the  Company.  The  5.375%  Senior  Notes  bear  interest  at  a  rate  of 
5.375% per year, payable in cash on January 24 and July 24 of each year, commencing January 24, 2019. The 5.375% Senior 
Notes will mature on July 24, 2023. We may redeem some or all of the 5.375% Senior Notes at any time or from time to time 
for  cash  at  certain  “make-whole”  redemption  prices  (as  set  forth  in  the  indenture  related  to  the  5.375%  Senior  Notes).  If  a 
“Change  of  Control  Triggering  Event”  (as  defined  in  the  indenture  related  to  the  5.375%  Senior  Notes)  occurs,  holders  may 
require the Company to purchase all or a portion of their notes for cash at a price equal to 101% of the principal amount of the 
notes to be purchased plus any accrued and unpaid interest to, but excluding, the purchase date. The initial carrying value of the 
5.375% Senior Notes  was  $444.2 million, net  of the discount and debt issuance costs of $5.8 million, of which $0.3 million 
were underwriting fees paid to CF&Co. We also paid CF&Co an advisory fee of $0.2 million in connection with the issuance. 
The issuance costs are amortized as interest expense and the carrying value of the 5.375% Senior Notes will accrete up to the 
face amount over the term of the notes. The carrying value of the 5.375% Senior Notes as of December 31, 2022 was $449.2 
million.  We  intend  to  either  refinance  the  5.375%  Senior  Notes  prior  to  maturity,  or  use  cash  on  hand,  cash  flow  from 
operations or the Revolving Credit Agreement to settle such amounts.

109

On July 31, 2018, we filed a Registration Statement on Form S-4 which was declared effective by the SEC on August 
10,  2018.  On  August  10,  2018,  BGC  launched  an  exchange  offer  in  which  holders  of  the  5.375%  Senior  Notes,  issued  in  a 
private placement on July 24, 2018, could exchange such notes for new registered notes with substantially identical terms. The 
exchange  offer  closed  on  September  17,  2018,  at  which  point  the  initial  5.375%  Senior  Notes  were  exchanged  for  new 
registered notes with substantially identical terms.

3.750% Senior Notes

On  September  27,  2019,  we  issued  an  aggregate  of  $300.0  million  principal  amount  of  3.750%  Senior  Notes.  The 
3.750%  Senior  Notes  are  general  unsecured  obligations  of  the  Company.  The  3.750%  Senior  Notes  bear  interest  at  a  rate  of 
3.750% per year, payable in cash on April 1 and October 1 of each year, commencing April 1, 2020. The 3.750% Senior Notes 
will mature on October 1, 2024. We may redeem some or all of the 3.750% Senior Notes at any time or from time to time for 
cash at certain “make-whole” redemption prices (as set forth in the indenture related to the 3.750% Senior Notes). If a “Change 
of Control Triggering Event” (as defined in the indenture related to the 3.750% Senior Notes) occurs, holders may require the 
Company to purchase all or a portion of their notes for cash at a price equal to 101% of the principal amount of the notes to be 
purchased plus any accrued and unpaid interest to, but excluding, the purchase date. The initial carrying value of the 3.750% 
Senior  Notes  was  $296.1  million,  net  of  discount  and  debt  issuance  costs  of  $3.9  million,  of  which  $0.2  million  were 
underwriting fees payable to CF&Co. The issuance costs will be amortized as interest expense and the carrying value of the 
3.750% Senior Notes will accrete up to the face amount over the term of the notes. The carrying value of the 3.750% Senior 
Notes was $298.6 million as of December 31, 2022.

On  October  11,  2019,  we  filed  a  Registration  Statement  on  Form  S-4,  which  was  declared  effective  by  the  SEC  on 
October 24, 2019. On October 28, 2019, BGC launched an exchange offer in which holders of the 3.750% Senior Notes, issued 
in a private placement on September 27, 2019, could exchange such notes for new registered notes with substantially identical 
terms. The exchange offer closed on December 9, 2019, at which point the initial 3.750% Senior Notes were exchanged for new 
registered notes with substantially identical terms.

4.375% Senior Notes

On July 10, 2020, we issued an aggregate of $300.0 million principal amount of 4.375% Senior Notes. The 4.375% 
Senior Notes are general unsecured obligations of the Company. The 4.375% Senior Notes bear interest at a rate of 4.375% per 
year, payable in cash on June 15 and December 15 of each year, commencing December 15, 2020. The 4.375% Senior Notes 
will mature on December 15, 2025. We may redeem some or all of the 4.375% Senior Notes at any time or from time to time 
for  cash  at  certain  “make-whole”  redemption  prices  (as  set  forth  in  the  indenture  related  to  the  4.375%  Senior  Notes).  If  a 
“Change  of  Control  Triggering  Event”  (as  defined  in  the  indenture  related  to  the  4.375%  Senior  Notes)  occurs,  holders  may 
require the Company to purchase all or a portion of their notes for cash at a price equal to 101% of the principal amount of the 
notes to be purchased plus any accrued and unpaid interest to, but excluding, the purchase date. Cantor purchased $14.5 million 
of such senior notes and still holds such notes as of December 31, 2022. The initial carrying value of the 4.375% Senior Notes 
was  $296.8  million,  net  of  discount  and  debt  issuance  costs  of  $3.2  million,  of  which  $0.2  million  were  underwriting  fees 
payable to CF&Co. The carrying value of the 4.375% Senior Notes was $298.2 million as of December 31, 2022.

On  August  28,  2020,  we  filed  a  Registration  Statement  on  Form  S-4,  which  was  declared  effective  by  the  SEC  on 
September  8,  2020.  On  September  9,  2020,  BGC  launched  an  exchange  offer  in  which  holders  of  the  4.375%  Senior  Notes, 
issued in a private placement on July 10, 2020, could exchange such notes for new registered notes with substantially identical 
terms. The exchange offer closed on October 14, 2020, at which point the initial 4.375% Senior Notes were exchanged for new 
registered notes with substantially identical terms.

Collateralized Borrowings

On May 31, 2017, we entered into a secured loan arrangement of $29.9 million under which we pledged certain fixed 
assets as security for a loan. This arrangement incurred interest at a fixed rate of 3.44% per year and matured on May 31, 2021, 
therefore, there were no borrowings outstanding as of both December 31, 2022 and 2021.

On April 8, 2019, we entered into a secured loan arrangement of $15.0 million, under which we pledged certain fixed 
assets  as  security  for  a  loan.  This  arrangement  incurs  interest  at  a  fixed  rate  of  3.77%  and  matures  on  April  8,  2023.  As  of 
December  31,  2022  and  2021,  we  had  $2.0  million  and  $5.9  million,  respectively,  outstanding  related  to  this  secured  loan 
arrangement.  The  book  value  of  the  fixed  assets  pledged  as  of  December  31,  2022  and  2021,  was  $10  thousand  and  $0.1 
million, respectively.

On April 19, 2019, we entered into a secured loan arrangement of $10.0 million, under which we pledged certain fixed 
assets as security for a loan. This arrangement incurs interest at a fixed rate of 3.89% and matures on April 19, 2023. As of 

110

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In addition, the majority of our other foreign subsidiaries are subject to similar regulation by the relevant authorities in 
the countries in which they do business. Certain other of our foreign subsidiaries are required to maintain non-U.S. net capital 
requirements. For example, in Hong Kong, BGC Securities (Hong Kong), LLC, GFI (HK) Securities LLC and Sunrise Broker 
(Hong Kong) Limited are regulated by the Securities and Futures Commission. BGC Capital Markets (Hong Kong), Limited 
and  GFI  (HK)  Brokers  Ltd  are  regulated  by  The  Hong  Kong  Monetary  Authority.  All  are  subject  to  Hong  Kong  net  capital 
requirements.  In  France,  Aurel  BGC  and  BGC  France  Holdings;  in  Australia,  BGC  Partners  (Australia)  Pty  Limited,  BGC 
(Securities) Pty Limited and GFI Australia Pty Ltd.; in Japan, BGC Shoken Kaisha Limited’s Tokyo branch and BGC Capital 
Markets Japan LLC’s Tokyo Branch; in Singapore, BGC Partners (Singapore) Limited, GFI Group Pte Ltd and Ginga Global 
Markets  Pte  Ltd;  in  Korea,  BGC  Capital  Markets  &  Foreign  Exchange  Broker  (Korea)  Limited  and  GFI  Korea  Money 
Brokerage Limited; in Philippines GFI Group (Philippines) Inc. and in Turkey, BGC Partners Menkul Degerler AS, all have net 
capital  requirements  imposed  upon  them  by  local  regulators.  In  addition,  BGC  is  a  member  of  clearing  houses  such  as  The 
London Metal Exchange, which may impose minimum capital requirements. In Latin America, BGC Liquidez Distribuidora De 
Titulos E Valores Mobiliarios Ltda. (Brazil) has net capital requirements imposed upon it by local regulators.

These  subsidiaries  may  also  be  prohibited  from  repaying  the  borrowings  of  their  parents  or  affiliates,  paying  cash 
dividends,  making  loans  to  their  parent  or  affiliates  or  otherwise  entering  into  transactions,  in  each  case,  which  result  in  a 
significant reduction in their regulatory capital position without prior notification or approval from their principal regulator. See 
Note  21—“Regulatory  Requirements”  to  our  Consolidated  Financial  Statements  in  Part  II,  Item  8  of  this  Annual  Report  on 
Form 10-K for further details on our regulatory requirements.

As of December 31, 2022, $666.0 million of net assets were held by regulated subsidiaries. As of December 31, 2022, 
these  subsidiaries  had  aggregate  regulatory  net  capital,  as  defined,  in  excess  of  the  aggregate  regulatory  requirements,  as 
defined, of $342.2 million.

In April 2013, the Board and Audit Committee authorized management to enter into indemnification agreements with 
Cantor and its affiliates with respect to the provision of any guarantees provided by Cantor and its affiliates from time to time as 
required  by  regulators.  These  services  may  be  provided  from  time  to  time  at  a  reasonable  and  customary  fee.  In  2020,  the 
introducing broker guarantees were moved from CF&Co to Mint Brokers for the firm's stand alone and foreign NFA registered 
introducing brokers.

BGC  Derivative  Markets  and  GFI  Swaps  Exchange,  our  subsidiaries,  operate  as  SEFs.  Mandatory  Dodd-Frank  Act 
compliant execution on SEFs by eligible U.S. persons commenced in February 2014 for “made available to trade” products, and 
a  wide  range  of  other  rules  relating  to  the  execution  and  clearing  of  derivative  products  were  finalized  with  implementation 
periods in 2016 and beyond. We also own ELX, which became a dormant contract market on July 1, 2017 and in July 2021, we 
completed  the  purchase  of  the  Futures  Exchange  Group  from  Cantor,  which  represents  our  futures  exchange  and  related 
clearinghouse. As these rules require authorized execution facilities to maintain robust front-end and back-office IT capabilities 
and to make large and ongoing technology investments, and because these execution facilities may be supported by a variety of 
voice  and  auction-based  execution  methodologies,  we  expect  our  Hybrid  and  Fully  Electronic  trading  capability  to  perform 
strongly in such an environment.

Much of our global derivatives volumes continue to be executed by non-U.S. based clients outside the U.S. and subject 
to local prudential regulations. As such, we will continue to operate a number of European regulated venues in accordance with 
EU  or  U.K.  legislation  and  licensed  by  the  FCA  or  EU-based  national  supervisors.  These  venues  are  also  operated  for  non-
derivative  instruments  for  these  clients.  MiFID  II  was  published  by  the  European  Securities  and  Markets  Authority  in 
September 2015, and implemented in January 2018 and introduced important infrastructural changes.

MiFID  II  requires  a  significant  part  of  the  market  in  these  instruments  to  trade  on  trading  venues  subject  to 
transparency regimes, not only in pre- and post-trade prices, but also in fee structures and access. In addition, it has impacted a 
number  of  key  areas,  including  corporate  governance,  transaction  reporting,  pre-  and  post-trade  transparency,  technology 
synchronization, best execution and investor protection.

MiFID II was intended to help improve the functioning of the EU single market by achieving a greater consistency of 
regulatory standards. By design, therefore, it was intended that EU member states should have very similar regulatory regimes 
in relation to the matters addressed to MiFID. MiFID II has also introduced a new regulated execution venue category called an 
OTF that captures much of the Voice-and Hybrid-oriented trading in the EU. Much of our existing EU derivatives and fixed 
income execution business now take place on OTFs. Further to its decision to leave the EU, the U.K. has implemented MIFID 
II’s requirements into its own domestic legislation. Brexit may impact future market structures and MiFID II rulemaking and 
implementation  due  to  potential  changes  in  mutual  passporting  and  equivalence  arrangements  between  the  U.K.  and  EU 
member states (for further information see "Overview and Business Environment—Brexit" herein).

In addition, the GDPR came into effect in the EU on May 25, 2018 and creates new compliance obligations in relation 

to personal data. The GDPR may affect our practices, and will increase financial penalties for non-compliance significantly.

114

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(cid:16)(cid:16)(cid:23)

On December 13, 2017, the Amended and Restated BGC Holdings Partnership Agreement was amended and restated a 
second time to include prior standalone amendments and to make certain other changes related to the Separation. The Second 
Amended and Restated BGC Holdings Partnership Agreement, among other things, reflects changes resulting from the division 
in the Separation of BGC Holdings into BGC Holdings and Newmark Holdings, including:

•

•

•

an  apportionment  of  the  existing  economic  attributes  (including,  among  others,  capital  accounts  and  post-
termination payments) of each BGC Holdings limited partnership interests outstanding immediately prior to
the  Separation  between  such  Legacy  BGC  Holdings  Unit  and  the  fraction  of  a  Newmark  Holdings  LPU
issued in the Separation in respect of such Legacy BGC Holdings Unit, based on the relative value of BGC
and Newmark as of after the Newmark IPO;

an  adjustment  of  the  exchange  mechanism  between  the  Newmark  IPO  and  the  Distribution  so  that  one
exchangeable BGC Holdings unit together with a number of exchangeable Newmark Holdings units equal to
0.4545  divided  by  the  Newmark  Holdings  Exchange  Ratio  as  of  such  time,  must  be  exchanged  in  order  to
receive one share of BGC Class A common stock; and

a  right  of  the  employer  of  a  partner  (whether  it  be  Newmark  or  BGC)  to  determine  whether  to  grant
exchangeability  with  respect  to  Legacy  BGC  Holdings  Units  or  Legacy  Newmark  Holdings  Units  held  by
such partner.

The  Second  Amended  and  Restated  BGC  Holdings  Partnership  Agreement  also  removes  certain  classes  of  BGC 
Holdings units that are no longer outstanding, and permits the general partner of BGC Holdings to determine the total number 
of  authorized  BGC  Holdings  units.  The  Second  Amended  and  Restated  BGC  Holdings  Limited  Partnership  Agreement  was 
approved by the Audit Committee.

Registration Statements

We previously had in place the March 2018 Form S-3 with respect to the issuance and sale of up to an aggregate of 
$300.0 million of shares of BGC Class A common stock from time to time on a delayed or continuous basis. On March 9, 2018, 
we  entered  into  the  March  2018  Sales  Agreement,  pursuant  to  which  we  could  offer  and  sell  up  to  an  aggregate  of  $300.0 
million of shares of BGC Class A common stock under the CEO Program. CF&Co is a wholly owned subsidiary of Cantor and 
an affiliate of us. Under this Sales Agreement, we agreed to pay CF&Co 2% of the gross proceeds from the sale of shares. The 
March 2018 Form S-3 and the March 2018 Sales Agreement expired in September 2021. As of the date of expiration, we had 
sold 17.6 million shares of BGC Class A common stock (or $210.8 million) under the March 2018 Sales Agreement, and $89.2 
million  of  stock  remained  unsold  by  us  under  the  March  2018  Sales  Agreement.  For  additional  information  on  our  CEO 
Program sales agreements, see Note 13—“Related Party Transactions” to our Consolidated Financial Statements in Part 8, Item 
II of this Annual Report on Form 10-K. On March 8, 2021, we filed the March 2021 Form S-3 with respect to the issuance and 
sale  of  up  to  an  aggregate  of  $300.0  million  of  shares  of  BGC  Class  A  common  stock  from  time  to  time  on  a  delayed  or 
continuous basis. On July 8, 2022, we filed an amendment to the March 2021 Form S-3. On August 3, 2022, the March 2021 
Form S-3 was declared effective by the SEC, and we entered into the August 2022 Sales Agreement on August 12, 2022.

We intend to use the net proceeds of any shares of BGC Class A common stock sold for general corporate purposes for 
potential acquisitions, redemptions of LPUs and FPUs in BGC Holdings and repurchases of shares of BGC Class A common 
stock from partners, executive officers and other employees of ours or our subsidiaries and of Cantor and its affiliates. Certain 
of such partners will be expected to use the proceeds from such sales to repay outstanding loans issued by, or credit enhanced 
by,  Cantor,  or  BGC  Holdings.  In  addition  to  general  corporate  purposes,  these  sales  along  with  our  share  repurchase 
authorization are designed as a planning device in order to facilitate the redemption process. Going forward, we may redeem 
units and reduce our fully diluted share count under our repurchase authorization or later sell shares of BGC Class A common 
stock under the March 2021 Form S-3.

Further, we have an effective registration statement on Form S-4 filed on September 3, 2010, with respect to the offer 
and sale of up to 20 million shares of BGC Class A common stock from time to time in connection with business combination 
transactions,  including  acquisitions  of  other  businesses,  assets,  properties  or  securities.  As  of  December  31,  2022,  we  have 
issued  an  aggregate  of  17.2  million  shares  of  BGC  Class  A  common  stock  under  this  Form  S-4  registration  statement. 
Additionally, on September 13, 2019, we filed a registration statement on Form S-4, with respect to the offer and sale of up to 
20 million shares of Class A common stock from time to time in connection with business combination transactions, including 
acquisitions of other businesses, assets, properties or securities. As of December 31, 2022, we have not issued any shares of 
BGC Class A common stock under this Form S-4 registration statement. We also have an effective shelf registration statement 
on Form S-3 pursuant to which we can offer and sell up to 10 million shares of BGC Class A common stock under the BGC 
Partners, Inc. Dividend Reinvestment and Stock Purchase Plan. As of December 31, 2022, we have issued 0.8 million shares of 
BGC Class A common stock under the Dividend Reinvestment and Stock Purchase Plan.

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The Compensation Committee may grant stock options, stock appreciation rights, deferred stock such as RSUs, bonus 
stock, performance awards, dividend equivalents and other equity-based awards, including to provide exchange rights for shares 
of BGC Class A common stock upon exchange of LPUs. On November 22, 2021, at our Annual Meeting of Stockholders, our 
stockholders  approved  amendments  to  our  Equity  Plan  to  increase  from  400  million  to  500  million  the  aggregate  number  of 
shares of BGC Class A common stock that may be delivered or cash-settled pursuant to awards granted during the life of the 
Equity  Plan,  subject  to  adjustment,  and  to  remove  the  annual  per-participant  limit  of  15  million  awards  that  may  be  granted 
under the Plan. As of December 31, 2022, the limit on the aggregate number of shares authorized to be delivered allowed for 
the grant of future awards relating to 128.0 million shares of BGC Class A common stock.

CONTINGENT PAYMENTS RELATED TO ACQUISITIONS

Since 2016, the Company has completed acquisitions whose purchase price included an aggregate of approximately 
2.2  million  shares  of  the  BGC  Class  A  common  stock  (with  an  acquisition  date  fair  value  of  approximately  $9.2  million), 
0.1 million LPUs (with an acquisition date fair value of approximately $0.2 million), 0.2 million RSUs (with an acquisition date 
fair value of approximately $1.2 million) and $37.5 million in cash that may be issued contingent on certain targets being met 
through 2023.

As  of  December  31,  2022,  the  Company  has  issued  1.0  million  shares  of  BGC  Class  A  common  stock,  0.2  million 

RSUs, and paid $34.7 million in cash related to such contingent payments.

As of December 31, 2022, 1.3 million shares of BGC Class A common stock, 0.1 million RSUs, and $18.4 million in 

cash remain to be issued if the targets are met, net of forfeitures and other adjustments.

DERIVATIVE SUIT

On October 5, 2018, Roofers Local 149 Pension Fund filed a putative derivative complaint in the Delaware Chancery 
Court,  captioned  Roofers  Local  149  Pension  Fund  vs.  Howard  Lutnick,  et  al.  (Case  No.  2018-0722),  alleging  breaches  of 
fiduciary  duty  against  (i)  the  members  of  the  Board,  (ii)  Howard  Lutnick,  CFGM,  and  Cantor  as  controlling  stockholders  of 
BGC, and (iii) Howard Lutnick as an officer of BGC. The complaint challenges the transactions by which BGC (i) completed 
the Berkeley Point acquisition from CCRE for $875 million and (ii) committed to invest $100 million for a 27% interest in Real 
Estate,  L.P.  (collectively,  the  “Transaction”).  Among  other  things,  the  complaint  alleges  that  (i)  the  price  BGC  paid  in 
connection with the Transaction was unfair, (ii) the process leading up to the Transaction was unfair, and (iii) the members of 
the special committee of the Board were not independent. It seeks to recover for the Company unquantified damages, as well as 
attorneys’ fees.

A month later, on November 5, 2018, the same plaintiffs’ firm filed an identical putative derivative complaint against 
the  same  defendants  seeking  the  same  relief  on  behalf  of  a  second  client,  Northern  California  Pipe  Trades  Trust  Funds.  The 
cases were consolidated into a single action, captioned In re BGC Partners, Inc. Derivative Litigation (Consolidated C.A. No. 
2018-0722-AGB),  and  the  complaint  filed  by  Roofers  Local  149  Pension  Fund  on  October  5,  2018  was  designated  as  the 
operative complaint.

In  response  to  motions  to  dismiss  filed  by  all  defendants  in  December  2018,  Plaintiffs  filed  a  motion  for  leave  to 
amend the operative complaint in February 2019, requesting that the Court allow them to supplement their allegations, which 
the Court granted. The amended complaint alleges the same purported breaches of fiduciary duty as the operative complaint, 
raises  no  new  claims,  and  seeks  identical  relief,  but  includes  additional  allegations,  including  alleged  reasons  for  plaintiffs’ 
failure  to  make  a  demand  on  the  Board,  which  was  the  basis  of  defendants’  motion  to  dismiss.  On  March  19,  2019,  all 
defendants  filed  motions  to  dismiss  the  amended  complaints,  again  on  demand  grounds.  On  September  30,  2019,  the  Court 
denied defendants’ motions to dismiss, permitting the case to move forward into discovery. In its ruling, the Court determined 
that the amended complaint sufficiently pled that plaintiffs were not required to make demand on the Board in order to file a 
derivative suit, but did not make findings of fact with respect to the underlying merits of plaintiffs’ allegations concerning the 
Transaction. On February 11, 2021, following the close of discovery, the Company and the independent directors of the Board 
filed  motions  for  summary  judgment  seeking  dismissal  of  the  case  based  on  the  discovery  record,  which  plaintiffs  opposed. 
Argument was held on defendants’ summary judgment motions on June 22, 2021. On September 20, 2021, the Court partially 
granted the summary judgment motions, dismissing directors Stephen Curwood and Linda Bell and permitting the trial to move 
forward  against  the  remaining  defendants.  A  trial  was  held  before  Vice  Chancellor  Lori  Will  on  October  11,  2021,  which 
concluded on October 15, 2021. Following the close of the hearing, the parties submitted post-trial briefing, and presented oral 
argument on March 2, 2022. On April 14, 2022, the Court requested limited additional briefing, which the parties submitted on 
May 13, 2022.

On August 19, 2022, the Court issued a post-trial memorandum opinion in favor of BGC, its directors, and controlling 
shareholders, ruling that the Transaction was entirely fair to BGC’s shareholders with respect to both process and price. The 
Court  found  that  “Berkeley  Point  was,  by  all  accounts,  a  unique  asset  particularly  appealing  to  BGC”  and  that  the  price 
negotiated by BGC’s Special Committee and agreed to by Cantor Fitzgerald was at the “lower end” of a range of reasonable 

120

prices.  The  Court  further  found  the  Special  Committee  was  “independent,  fully  empowered,  and  well-functioning.”  Final 
judgment  in  the  case  was  entered  for  Defendants  and  against  the  Plaintiffs  on  September  27,  2022.  The  same  day,  Plaintiffs 
filed a notice of appeal, seeking reversal of the memorandum opinion and final judgment. The briefing of the appeal before the 
Delaware Supreme Court is now complete, with oral argument yet to be scheduled.

BGC believes that any appeal of the Court's final judgement would be without merit, and will continue to defend the 

case vigorously. However, as in any litigated matter, the outcome cannot be determined with certainty.

PURCHASE OF LIMITED PARTNERSHIP INTERESTS

Cantor  has  the  right  to  purchase  Cantor  units  from  BGC  Holdings  upon  redemption  of  non-exchangeable  FPUs 
redeemed by BGC Holdings upon termination or bankruptcy of the Founding/Working Partner. In addition, pursuant to Article 
Eight, Section 8.08, of the Second Amended and Restated BGC Holdings Limited Partnership Agreement (previously the Sixth 
Amendment), where either current, terminating, or terminated partners are permitted by the Company to exchange any portion 
of  their  FPUs and  Cantor  consents  to  such  exchangeability, the Company shall offer to Cantor the opportunity for Cantor to 
purchase the same number of Cantor units in BGC Holdings at the price that Cantor would have paid for Cantor units had the 
Company redeemed the FPUs. If Cantor acquires any Cantor units as a result of the purchase or redemption by BGC Holdings 
of  any  FPUs,  Cantor  will  be  entitled  to  the  benefits  (including  distributions)  of  such  units  it  acquires  from  the  date  of 
termination or bankruptcy of the applicable Founding/Working Partner. In addition, any such Cantor units purchased by Cantor 
are currently exchangeable for up to 23.6 million shares of BGC Class B common stock or, at Cantor’s election or if there are 
no such additional shares of BGC Class B common stock, shares of BGC Class A common stock, in each case on a one-for-one 
basis (subject to customary anti-dilution adjustments).

On  March  31,  2021,  Cantor  purchased  from  BGC  Holdings  an  aggregate  of  1,149,684  Cantor  units  for  aggregate 
consideration  of  $2,104,433  as  a  result  of  the  redemption  of  1,149,684  FPUs,  and  1,618,376  Cantor  units  for  aggregate 
consideration of $3,040,411 as a result of the exchange of 1,618,376 FPUs.

On October 28, 2021, Cantor purchased from BGC Holdings an aggregate of 460,929 Cantor units for an aggregate 
consideration  of  $715,605  as  a  result  of  the  redemption  of  460,929  FPUs,  and  1,179,942  Cantor  units  for  aggregate 
consideration of $2,033,838 as a result of the exchange of 1,179,942 FPUs.

On  May  17,  2022,  Cantor  purchased  from  BGC  Holdings  an  aggregate  427,494  Cantor  units  for  aggregate 
consideration of $841,010 as a result of the redemption of 427,494 FPUs, and 52,681 Cantor units for aggregate consideration 
of $105,867 as a result of the exchange of 52,681 FPUs.

On October 25, 2022, Cantor purchased from BGC Holdings an aggregate of 275,833 Cantor units for an aggregate 
consideration of $397,196 as a result of the redemption of 275,833 FPUs, and 77,507 Cantor units for aggregate consideration 
of $142,613 as a result of the exchange of 77,507 FPUs. 

As of December 31, 2022, there were 0.3 million FPUs in BGC Holdings remaining, which BGC Holdings had the 
right to redeem or exchange and with respect to which Cantor will have the right to purchase an equivalent number of Cantor 
units following such redemption or exchange.

JOINT SERVICES AGREEMENT WITH CANTOR

In  February  2019,  the  Audit  Committee  authorized  us  to  enter  into  a  short-term  services  agreement  with  Cantor 
pursuant to which Cantor would be responsible for clearing, settling and processing certain transactions executed on behalf of 
customers  in  exchange  for  a  33%  revenue  share  based  on  net  transaction  revenue  and  the  payment  by  BGC  of  the  fully 
allocated cost of certain salespersons related thereto. In May 2020, the Audit Committee authorized us to extend the initial term 
of the short-term services agreement for an additional nine months.

GUARANTEE AGREEMENT FROM MINT BROKERS

Under  rules  adopted  by  the  CFTC,  all  foreign  introducing  brokers  engaging  in  transactions  with  U.S.  persons  are 
required  to  register  with  the  NFA  and  either  meet  financial  reporting  and  net  capital  requirements  on  an  individual  basis  or 
obtain a guarantee agreement from a registered Futures Commission Merchant. Our European-based brokers engage from time 
to  time  in  interest  rate  swap  transactions  with  U.S.-based  counterparties,  and  therefore  we  are  subject  to  the  CFTC 
requirements. Mint Brokers has entered into guarantees on our behalf (and on behalf of GFI), and we are required to indemnify 
Mint Brokers for the amounts, if any, paid by Mint Brokers on our behalf pursuant to this arrangement. Effective April 1, 2020, 
these  guarantees  were  transferred  to  Mint  Brokers  from  CF&Co.  During  the  years  ended  December  31,  2022  and  2021,  the 
Company recorded expenses of $0.1 million with respect to these guarantees.

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BGC SUBLEASE FROM NEWMARK

In May 2020, BGC U.S. OpCo entered into an arrangement to sublease excess space from RKF Retail Holdings LLC, 
a  subsidiary  of  Newmark,  which  sublease  was  approved  by  the  Audit  Committee.  The  deal  is  a  one-year  sublease  of 
approximately 21,000 rentable square feet in New York City. Under the terms of the sublease, BGC U.S. OpCo paid a fixed 
rent amount of $1.1 million in addition to all operating and tax expenses attributable to the lease. In May 2021, the sublease was 
amended to provide for a rate of $15 thousand per month based on the size of utilized space, with terms extending on a month-
to-month basis, and expiring on December 31, 2021. In connection with the sublease, BGC U.S. OpCo paid $0.5 million for the 
year ended December 31, 2021.

DEBT REPURCHASE PROGRAM

On 

June  11,  2020, 

its  Audit  Committee  authorized  a 
debt repurchase program for the repurchase by the Company of up to $50.0 million of Company Debt Securities. Repurchases 
of  Company  Debt  Securities,  if  any,  are  expected  to  reduce  future  cash  interest  payments,  as  well  as  future  amounts  due  at 
maturity or upon redemption.

the  Company’s  Board  of  Directors  and 

Under the authorization, the Company may make repurchases of Company Debt Securities for cash from time to time 
in the open market or in privately negotiated transactions upon such terms and at such prices as management may determine. 
Additionally,  the  Company  is  authorized  to  make  any  such  repurchases  of  Company  Debt  Securities  through  CF&Co  (or  its 
affiliates), in its capacity as agent or principal, or such other broker-dealers as management shall determine to utilize from time 
to time, and such repurchases shall be subject to brokerage commissions which are no higher than standard market commission 
rates.

As of December 31, 2022, the Company had $50.0 million remaining from its debt repurchase authorization.

EQUITY METHOD INVESTMENTS

The  Company  was  authorized  to  enter  into  loans,  investments  or  other  credit  support  arrangements  for  Aqua;  such 
arrangements  are  proportionally  and  on  the  same  terms  as  similar  arrangements  between  Aqua  and  Cantor.  On  February  15, 
2022  and  February  25,  2021,  the  Company’s  Board  and  Audit  Committee  increased  the  authorized  amount  by  an  additional 
$1.0  million  and  $1.0  million  respectively,  to  an  aggregate  of  $21.2  million.  The  Company  has  been  further  authorized  to 
provide counterparty or similar guarantees on behalf of Aqua from time to time, provided that liability for any such guarantees, 
as well as similar guarantees provided by Cantor, would be shared proportionally with Cantor (see Note 13—“Related Party 
Transactions”  to  our  consolidated  financial  statements  in  Part  II,  Item  8  of  this  Annual  Report  on  Form  10-K  for  more 
information).

UNIT REDEMPTIONS AND EXCHANGES—EXECUTIVE OFFICERS 

On March 14, 2022, the Compensation Committee approved the grant of exchange rights to Mr. Windeatt with respect 
to  135,514  non-exchangeable  BGC  Holdings  LPU-NEWs  and  27,826  non-exchangeable  PLPU-NEWs  (at  the  average 
determination price of $4.84 per unit). On August 11, 2022, the Company repurchased 135,514 exchangeable BGC Holdings 
LPU-NEWs held by Mr. Windeatt at the price of $4.08 per unit, which was the closing price of the BGC Class A common stock 
on August 11, 2022, and redeemed 27,826 exchangeable PLPU-NEWs held by Mr. Windeatt for $134,678, less applicable taxes 
and withholdings.

On February 22, 2021, the Company granted Sean A. Windeatt 123,713 exchange rights with respect to 123,713 non-
exchangeable LPUs that were previously granted to Mr. Windeatt on February 22, 2019. The resulting 123,713 exchangeable 
LPUs are immediately exchangeable by Mr. Windeatt for an aggregate of 123,713 shares of BGC Class A common stock. The 
grant  was  approved  by  the  Compensation  Committee.  Additionally,  the  Compensation  Committee  approved  the  right  to 
exchange for cash 28,477 non-exchangeable PLPUs held by Mr. Windeatt, for a payment of $178,266 for taxes when the LPU 
units are exchanged.

On  April  8,  2021,  the  Compensation  Committee  approved  the  repurchase  by  the  Company  on  April  23,  2021  of 
123,713 exchangeable BGC Holdings LPU-NEWs held by Mr. Windeatt at the price of $5.65, which was the closing price of 
our Class A common stock on April 23, 2021, and the redemption of 28,477 exchangeable BGC Holdings PLPU-NEWs held by 
Mr. Windeatt for $178,266, less applicable taxes and withholdings.

On  April  8,  2021,  the  Compensation  Committee  approved  the  repurchase  by  the  Company  of  the  remaining  62,211 
exchangeable BGC Holdings LPUs held by Mr. Windeatt that were granted exchangeability on March 2, 2020 at the price of 
$5.38, the closing price of Class A common stock on April 8, 2020.

122

On  April  28,  2021,  the  Compensation  Committee  approved  an  additional  monetization  opportunity  for  Mr.  Merkel. 
Effective April 29, 2021, 108,350 of Mr. Merkel’s 273,612 non-exchangeable BGC Holdings PSUs were redeemed for zero, 
101,358 of Mr. Merkel’s 250,659 non- exchangeable BGC Holdings PPSUs were redeemed for a cash payment of $575,687, 
and 108,350 shares of BGC Class A common stock were issued to Mr. Merkel. On April 29, 2021, the 108,350 shares of BGC 
Class A common stock were repurchased from Mr. Merkel at the closing price of our Class A common stock on that date, under 
our stock buyback program.

On June 28, 2021, (i) the Company exchanged 520,380 exchangeable LPUs held by Mr. Lutnick at the price of $5.86, 
which was the closing price of the BGC Class A common stock on June 28, 2021, for 520,380 shares of BGC Class A common 
stock, less applicable taxes and withholdings, resulting in the delivery of 365,229 net shares of BGC Class A common stock to 
Mr. Lutnick, and in connection with the exchange of these 520,380 exchangeable LPUs, 425,765 exchangeable PLPUs were 
redeemed for a cash payment of $1,525,705 towards taxes; (ii) 88,636 non-exchangeable LPUs were redeemed for zero, and in 
connection therewith the Company issued Mr. Lutnick 88,636 shares of BGC Class A common stock, less applicable taxes and 
withholdings, resulting in the delivery of 41,464 net shares of BGC Class A common stock to Mr. Lutnick; and (iii) 1,131,774 
H Units held by Mr. Lutnick were redeemed for 1,131,774 HDUs with a capital account of $7,017,000, and in connection with 
the redemption of these 1,131,774 H Units, 1,018,390 Preferred H Units were redeemed for $7,983,000 for taxes.

On December 21, 2021, the Compensation Committee approved a monetization opportunity for Mr. Lutnick. Effective 
December  21,  2021,  1,939,896  of  Mr.  Lutnick’s  non-exchangeable  BGC  Holding  PPSUs  were  redeemed  for  a  payment  of 
$10,851,803.  Mr.  Lutnick  also  elected  to  redeem  all  of  his  425,766  exchangeable  BGC  Holdings  PPSUs  for  a  payment  of 
$1,525,706. In connection with the foregoing, Mr. Lutnick’s 2,011,731 non-exchangeable BGC Holdings PSUs were redeemed 
for zero and 2,011,731 shares of BGC Class A common stock were issued to Mr. Lutnick. In addition, 376,651 H Units held by 
Mr. Lutnick were redeemed for 376,651 HDUs with a capital account of $2,339,003, and in connection with the redemption of 
these 376,651 H Units, 463,969 Preferred H Units were redeemed for $2,661,000 for taxes.

On December 21, 2021, the Compensation Committee approved a monetization opportunity for Mr. Merkel. Effective 
December  21,  2021,  90,366  non-exchangeable  BGC  Holdings  PSUs  were  redeemed  for  zero,  149,301  of  Mr.  Merkel’s  non-
exchangeable  BGC  Holdings  PPSUs  were  redeemed  for  a  cash  payment  of  $555,990,  and  90,366  shares  of  BGC  Class  A 
common stock were issued to Mr. Merkel.

On March 2, 2020, the Company granted Stephen M. Merkel 360,065 exchange rights with respect to 360,065 non-
exchangeable PSUs that were previously granted to Mr. Merkel. The resulting 360,065 exchangeable PSUs were immediately 
exchangeable by Mr. Merkel for an aggregate of 360,065 shares of BGC Class A common stock. The grant was approved by 
the  Compensation  Committee.  Additionally,  the  Compensation  Committee  approved  the  right  to  exchange  for  cash  265,568 
non-exchangeable PPSUs held by Mr. Merkel, for a payment of $1,507,285 for taxes when the PSU units were exchanged. On 
March 20, 2020, the Company redeemed 185,300 of such 360,065 exchangeable PSUs held by Mr. Merkel at the average price 
of shares of BGC Class A common stock sold under BGC’s CEO Program from March 10, 2020 to March 13, 2020 less 1% 
(approximately  $4.0024  per  PSU,  for  an  aggregate  redemption  price  of  approximately  $741,644).  This  transaction  was 
approved  by  the  Compensation  Committee.  On  July  30,  2020,  the  Company  redeemed  the  remaining  174,765  exchangeable 
PSUs  held  by  Mr.  Merkel  at  the  price  of  $2.76,  the  closing  price  of  our  Class  A  Common  Stock  on  July  30,  2020.  This 
transaction  was  approved  by  the  Compensation  Committee.  In  connection  with  the  redemption  of  the  185,300  exchangeable 
PSUs  on  March  20,  2020,  122,579  PPSUs  were  redeemed  for  $661,303  for  taxes.  In  connection  with  the  redemption  of  the 
174,765 PSUs on July 30, 2020, 142,989 PPSUs were redeemed for $846,182 for taxes.

On  March  2,  2020,  the  Company  granted  Shaun  D.  Lynn  883,348  exchange  rights  with  respect  to  883,348  non-
exchangeable  LPUs  that  were  previously  granted  to  Mr.  Lynn.  The  resulting  883,348  exchangeable  LPUs  were  immediately 
exchangeable by Mr. Lynn for an aggregate of 883,348 shares of BGC Class A common stock. The grant was approved by the 
Compensation Committee. Additionally, the Compensation Committee approved the right to exchange for cash 245,140 non-
exchangeable PLPUs held by Mr. Lynn, for a payment of $1,099,599 for taxes when the LPU units are exchanged. On July 30, 
2020,  the  Company  redeemed  797,222  exchangeable  LPUs  held  by  Mr.  Lynn  at  the  price  of  $2.76,  the  closing  price  of  our 
Class A Common Stock on July 30, 2020. This transaction was approved by the Compensation Committee. In connection with 
the  redemption  of  the  797,222  exchangeable  LPUs,  221,239  exchangeable  PLPUs  were  redeemed  for  $992,388  for  taxes.  In 
connection  with  the  redemption,  Mr.  Lynn’s  remaining  86,126  exchangeable  LPUs  and  23,901  exchangeable  PLPUs  were 
redeemed for zero upon exchange in connection with his LLP status.

On  March  2,  2020,  the  Company  granted  Sean  A.  Windeatt  519,725  exchange  rights  with  respect  to  519,725  non-
exchangeable LPUs that were previously granted to Mr. Windeatt. The resulting 519,725 exchangeable LPUs were immediately 
exchangeable by Mr. Windeatt for an aggregate of 519,725 shares of BGC Class A common stock. The grant was approved by 
the Compensation Committee. Additionally, the Compensation Committee approved the right to exchange for cash 97,656 non-
exchangeable PLPUs held by Mr. Windeatt, for a payment of $645,779 for taxes when the LPU units are exchanged. On August 
5, 2020, the Company redeemed 436,665 exchangeable LPUs held by Mr. Windeatt at the price of $2.90, the closing price of 
our Class A common stock on August 5, 2020. This transaction was approved by the Compensation Committee. In connection 
with the redemption of the 436,665 exchangeable LPUs, 96,216 exchangeable PLPUs were redeemed for $637,866 for taxes. In 

123

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(cid:26)(cid:41)(cid:32)(cid:43)(cid:32)(cid:26)(cid:24)(cid:35)(cid:1)(cid:24)(cid:26)(cid:26)(cid:38)(cid:44)(cid:37)(cid:43)(cid:32)(cid:37)(cid:30)(cid:1)(cid:39)(cid:38)(cid:35)(cid:32)(cid:26)(cid:32)(cid:28)(cid:42)(cid:1)(cid:24)(cid:37)(cid:27)(cid:1)(cid:28)(cid:42)(cid:43)(cid:32)(cid:36)(cid:24)(cid:43)(cid:28)(cid:42)

(cid:46)(cid:64)(cid:61)(cid:1) (cid:72)(cid:74)(cid:61)(cid:72)(cid:57)(cid:74)(cid:57)(cid:76)(cid:65)(cid:71)(cid:70)(cid:1) (cid:71)(cid:62)(cid:1) (cid:71)(cid:77)(cid:74)(cid:1) (cid:29)(cid:71)(cid:70)(cid:75)(cid:71)(cid:68)(cid:65)(cid:60)(cid:57)(cid:76)(cid:61)(cid:60)(cid:1) (cid:32)(cid:65)(cid:70)(cid:57)(cid:70)(cid:59)(cid:65)(cid:57)(cid:68)(cid:1) (cid:45)(cid:76)(cid:57)(cid:76)(cid:61)(cid:69)(cid:61)(cid:70)(cid:76)(cid:75)(cid:1) (cid:65)(cid:70)(cid:1) (cid:59)(cid:71)(cid:70)(cid:62)(cid:71)(cid:74)(cid:69)(cid:65)(cid:76)(cid:81)(cid:1) (cid:79)(cid:65)(cid:76)(cid:64)(cid:1) (cid:47)(cid:13)(cid:45)(cid:13)(cid:1) (cid:33)(cid:27)(cid:27)(cid:42)(cid:1) (cid:74)(cid:61)(cid:73)(cid:77)(cid:65)(cid:74)(cid:61)(cid:75)(cid:1) (cid:69)(cid:57)(cid:70)(cid:57)(cid:63)(cid:61)(cid:69)(cid:61)(cid:70)(cid:76)(cid:1) (cid:76)(cid:71)(cid:1)
(cid:69)(cid:57)(cid:67)(cid:61)(cid:1)(cid:61)(cid:75)(cid:76)(cid:65)(cid:69)(cid:57)(cid:76)(cid:61)(cid:75)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:57)(cid:75)(cid:75)(cid:77)(cid:69)(cid:72)(cid:76)(cid:65)(cid:71)(cid:70)(cid:75)(cid:1)(cid:76)(cid:64)(cid:57)(cid:76)(cid:1)(cid:57)(cid:62)(cid:62)(cid:61)(cid:59)(cid:76)(cid:1)(cid:76)(cid:64)(cid:61)(cid:1)(cid:74)(cid:61)(cid:72)(cid:71)(cid:74)(cid:76)(cid:61)(cid:60)(cid:1)(cid:57)(cid:69)(cid:71)(cid:77)(cid:70)(cid:76)(cid:75)(cid:1)(cid:71)(cid:62)(cid:1)(cid:76)(cid:64)(cid:61)(cid:1)(cid:57)(cid:75)(cid:75)(cid:61)(cid:76)(cid:75)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:68)(cid:65)(cid:57)(cid:58)(cid:65)(cid:68)(cid:65)(cid:76)(cid:65)(cid:61)(cid:75)(cid:11)(cid:1)(cid:74)(cid:61)(cid:78)(cid:61)(cid:70)(cid:77)(cid:61)(cid:75)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:61)(cid:80)(cid:72)(cid:61)(cid:70)(cid:75)(cid:61)(cid:75)(cid:11)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:76)(cid:64)(cid:61)(cid:1)

(cid:16)(cid:17)(cid:20)

disclosure of contingent assets and liabilities in our Consolidated Financial Statements. These accounting estimates require the 
use of assumptions about matters, some of which are highly uncertain at the time of estimation. Management bases its estimates 
on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of 
which  form  the  basis  for  making  judgments,  and  we  evaluate  these  estimates  on  an  ongoing  basis.  To  the  extent  actual 
experience differs from the assumptions used, our Consolidated Statements of Financial Condition, Consolidated Statements of 
Operations and Consolidated Statements of Cash Flows could be materially affected. We believe that the following accounting 
policies involve a higher degree of judgment and complexity.

Revenue Recognition

We derive our revenues primarily through commissions from brokerage services, the spread between the buy and sell 
prices on matched principal transactions, fees from related parties, data, software and post-trade services, and other revenues. 
See Note 3—“Summary of Significant Accounting Policies” to our consolidated financial statements in Part II, Item 8 of this 
Annual Report on Form 10-K for further information regarding revenue recognition.

Equity-Based and Other Compensation

Discretionary  Bonus:  A  portion  of  our  compensation  and  employee  benefits  expense  is  comprised  of  discretionary 
bonuses, which may be paid in cash, equity, partnership awards or a combination thereof. We accrue expense in a period based 
on revenues in that period and on the expected combination of cash, equity and partnership units. Given the assumptions used in 
estimating discretionary bonuses, actual results may differ.

Restricted  Stock  Units:  We  account  for  equity-based  compensation  awards  using  the  guidance  in  ASC  718, 
Compensation  -  Stock  Compensation.  RSUs  provided  to  certain  employees  are  accounted  for  as  equity  awards,  and  in 
accordance with the U.S. GAAP, we are required to record an expense for the portion of the RSUs that is ultimately expected to 
vest. Further, forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures 
differ  from  those  estimates.  Because  assumptions  are  used  in  estimating  employee  turnover  and  associated  forfeiture  rates, 
actual results may differ from our estimates under different assumptions or conditions.

The fair value of RSU awards to employees is determined on the date of grant, based on the fair value of BGC Class A 
common  stock.  Generally,  RSUs  granted  by  us  as  employee  compensation  do  not  receive  dividend  equivalents;  as  such,  we 
adjust the fair value of the RSUs for the present value of expected forgone dividends, which requires us to include an estimate 
of expected dividends as a valuation input. This grant-date fair value is amortized to expense ratably over the awards’ vesting 
periods. For RSUs with graded vesting features, we have made an accounting policy election to recognize compensation cost on 
a  straight-line  basis.  The  amortization  is  reflected  as  part  of  “Equity-based  compensation  and  allocations  of  net  income  to 
limited partnership units and FPUs” in our Consolidated Statements of Operations.

Restricted Stock: Restricted stock provided to certain employees is accounted for as an equity award, and as per the 
U.S. GAAP guidance, we are required to record an expense for the portion of the restricted stock that is ultimately expected to 
vest. We have granted restricted stock that is not subject to continued employment or service; however, transferability is subject 
to  compliance  with  our  and  our  affiliates’  customary  noncompete  obligations.  Such  shares  of  restricted  stock  are  generally 
saleable  by  partners  in  five  to  ten  years.  Because  the  restricted  stock  is  not  subject  to  continued  employment  or  service,  the 
grant-date fair value of the restricted stock is expensed on the date of grant. The expense is reflected as non-cash equity-based 
compensation expense in our Consolidated Statements of Operations.

Limited  Partnership  Units:  LPUs  in  BGC  Holdings  and  Newmark  Holdings  are  generally  held  by  employees. 
Generally, such units receive quarterly allocations of net income, which are cash distributed on a quarterly basis and generally 
contingent  upon  services  being  provided  by  the  unit  holders.  In  addition,  Preferred  Units  are  granted  in  connection  with  the 
grant of certain LPUs, such as PSUs, which may be granted exchangeability or redeemed in connection with the grant of shares 
of common stock to cover the withholding taxes owed by the unit holder upon such exchange or grant. This is an acceptable 
alternative  to  the  common  practice  among  public  companies  of  issuing  the  gross  amount  of  shares  to  employees,  subject  to 
cashless  withholding  of  shares  to  pay  applicable  withholding  taxes.  Our  Preferred  Units  are  not  entitled  to  participate  in 
partnership distributions other than with respect to a distribution at a rate of either 0.6875% (which is 2.75% per calendar year) 
or  such  other  amount  as  set  forth  in  the  award  documentation.  The  quarterly  allocations  of  net  income  to  such  LPUs  are 
reflected as a component of compensation expense under “Equity-based compensation and allocations of net income to limited 
partnership units and FPUs” in our Consolidated Statements of Operations.

Certain of these LPUs entitle the holders to receive post-termination payments equal to the notional amount, generally 
in  four  equal  yearly  installments  after  the  holder’s  termination.  These  LPUs  are  accounted  for  as  post-termination  liability 
awards under the U.S. GAAP. Accordingly, we recognize a liability for these units on our Consolidated Statements of Financial 
Condition as part of “Accrued compensation” for the amortized portion of the post-termination payment amount, based on the 

126

current  fair  value  of  the  expected  future  cash  payout.  We  amortize  the  post-termination  payment  amount,  less  an  expected 
forfeiture rate, over the vesting period, and record an expense for such awards based on the change in value at each reporting 
period in our Consolidated Statements of Operations as part of “Equity-based compensation and allocations of net income to 
limited partnership units and FPUs.”

Certain LPUs are granted exchangeability into shares of BGC or Newmark Class A common stock or are redeemed in 
connection with the grant of BGC or Newmark Class A common stock issued; BGC Class A common stock is issued on a one-
for-one basis, and Newmark Class A common stock is issued based on the number of LPUs exchanged or redeemed multiplied 
by the then Exchange Ratio. At the time exchangeability is granted or shares of BGC or Newmark Class A common stock are 
issued,  we  recognize  an  expense  based  on  the  fair  value  of  the  award  on  that  date,  which  is  included  in  “Equity-based 
compensation  and  allocations  of  net  income  to  limited  partnership  units  and  FPUs”  in  our  Consolidated  Statements  of 
Operations.  During  the  years  ended  December  31,  2022,  2021  and  2020,  we  incurred  equity-based  compensation  expense  of 
$147.5 million, $128.1 million and $85.0 million, respectively, related to LPUs and issuance of common stock.

Certain  LPUs  have  a  stated  vesting  schedule  and  do  not  receive  quarterly  allocations  of  net  income.  Compensation 
expense related to these LPUs is recognized over the stated service period, and these units generally vest between two and five 
years. During the years ended December 31, 2022, 2021 and 2020, we incurred equity-based compensation expense related to 
these  LPUs  of  $73.7  million,  $78.6  million,  and  $74.3  million,  respectively.  This  expense  is  included  in  “Equity-based 
compensation  and  allocations  of  net  income  to  limited  partnership  units  and  FPUs”  in  our  Consolidated  Statements  of 
Operations.

Employee  Loans:  We  have  entered  into  various  agreements  with  certain  employees  and  partners,  whereby  these 
individuals receive loans that may be either wholly or in part repaid from distributions that the individuals receive on some or 
all of their LPUs and from proceeds of the sale of the employees' shares of BGC Class A common stock or may be forgiven 
over a period of time. Cash advance distribution loans are documented in formal agreements and are repayable in timeframes 
outlined in the underlying agreements. We intend for these advances to be repaid in full from the future distributions on existing 
and  future  awards  granted.  The  distributions  are  treated  as  compensation  expense  when  made  and  the  proceeds  are  used  to 
repay the loan. The forgivable portion of any loans is recognized as compensation expense in our Consolidated Statements of 
Operations over the life of the loan. We review the loan balances each reporting period for collectability. If we determine that 
the  collectability  of  a  portion  of  the  loan  balances  is  not  expected,  we  recognize  a  reserve  against  the  loan  balances.  Actual 
collectability of loan balances may differ from our estimates.

As of December 31, 2022 and 2021, the aggregate balance of employee loans, net of reserve, was $319.6 million and 
$287.0 million, respectively, and is included as “Loans, forgivable loans and other receivables from employees and partners, 
net” in our consolidated statements of financial condition. Compensation expense (benefit) for the above-mentioned employee 
loans for the years ended December 31, 2022, 2021 and 2020 was $49.5 million, $217.7 million and $67.0 million, respectively. 
The  compensation  expense  related  to  these  loans  was  included  as  part  of  “Compensation  and  employee  benefits”  in  our 
Consolidated Statements of Operations.

Goodwill

Goodwill  is  the  excess  of  the  purchase  price  over  the  fair  value  of  identifiable  net  assets  acquired  in  a  business 
combination.  As  prescribed  in  the  U.S.  GAAP  guidance,  Intangibles  –  Goodwill  and  Other,  goodwill  is  not  amortized,  but 
instead is periodically tested for impairment. We review goodwill for impairment on an annual basis during the fourth quarter 
of each fiscal year  or  whenever  an  event  occurs  or circumstances change that could reduce the fair value of a reporting unit 
below its carrying amount.

When reviewing goodwill for impairment, we first assess qualitative factors to determine whether it is more likely than 
not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If the results of the qualitative 
assessment indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if we 
choose to bypass the qualitative assessment, we perform a quantitative goodwill impairment analysis as follows.

The  quantitative  goodwill  impairment  test,  used  to  identify  both  the  existence  of  impairment  and  the  amount  of 
impairment  loss,  compares  the  fair  value  of  a  reporting  unit  with  its  carrying  amount,  including  goodwill.  If  the  carrying 
amount of a reporting unit exceeds its fair value, an impairment loss should be recognized in an amount equal to that excess, 
limited to the total amount of goodwill allocated to that reporting unit. If the estimated fair value of a reporting unit exceeds its 
carrying value, goodwill is deemed not to be impaired. To estimate the fair value of the reporting unit, we use a discounted cash 
flow model and data regarding market comparables. The valuation process requires significant judgment and involves the use of 
significant  estimates  and  assumptions.  These  assumptions  include  cash  flow  projections,  estimated  cost  of  capital  and  the 
selection of peer companies and relevant multiples. Because assumptions and estimates are used in projecting future cash flows, 
choosing  peer  companies  and  selecting  relevant  multiples,  actual  results  may  differ  from  our  estimates  under  different 

127

assumptions or conditions; and changes to these estimates and assumptions, as a result of changing economic and competitive 
conditions, could materially affect the determination of fair value and/or impairment.

CECL

We present financial assets that are measured at amortized cost net of an allowance for credit losses, which represents 
the  amount  expected  to  be  collected  over  their  estimated  life.  Expected  credit  losses  for  newly  recognized  financial  assets 
carried at amortized cost, as well as changes to expected lifetime credit losses during the period, are recognized in earnings. In 
accordance  with  the  U.S.  GAAP  guidance,  Financial  Instruments—Credit  Losses,  the  CECL  methodology’s  impact  on 
expected  credit  losses,  among  other  things,  reflects  the  Company’s  view  of  the  current  state  of  the  economy,  forecasted 
macroeconomic  conditions  and  BGC’s  portfolios.  The  amount  of  the  allowance  is  based  on  significant  estimates  and  the 
ultimate losses may vary from such estimates as more information becomes available or conditions change.

Income Taxes

We account for income taxes using the asset and liability method as prescribed in the U.S. GAAP guidance, Income 
Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to basis differences between 
the Consolidated Financial Statement carrying amounts of existing assets and liabilities and their respective tax basis. Certain of 
our entities are taxed as U.S. partnerships and are subject to UBT in the City of New York. Therefore, the tax liability or benefit 
related to the partnership income or loss except for UBT rests with the partners (see Note 2—“Limited Partnership Interests in 
BGC Holdings and Newmark Holdings” to our Consolidated Financial Statements in Part II, Item 8 of this Annual Report on 
Form 10-K for a discussion  of  partnership interests), rather than the partnership entity. As such, the partners’ tax liability or 
benefit  is  not  reflected  in  our  Consolidated  Financial  Statements.  The  tax-related  assets,  liabilities,  provisions  or  benefits 
included in our consolidated financial statements also reflect the results of the entities that are taxed as corporations, either in 
the U.S. or in foreign jurisdictions.

We provide for uncertain tax positions based upon management’s assessment of whether a tax benefit is more likely 
than not to be sustained upon examination by tax authorities. Management is required to determine whether a tax position is 
more  likely  than  not  to  be  sustained  upon  examination  by  tax  authorities,  including  resolution  of  any  related  appeals  or 
litigation  processes,  based  on  the  technical  merits  of  the  position.  Because  significant  assumptions  are  used  in  determining 
whether a tax benefit is more likely than not to be sustained upon examination by tax authorities, actual results may differ from 
our estimates under different assumptions or conditions. We recognize interest and penalties related to income tax matters in 
“Provision for income taxes” in our Consolidated Statements of Operations.

A valuation allowance is recorded against deferred tax assets if it is deemed more likely than not that those assets will 
not be realized. In assessing the need for a valuation allowance, we consider all available evidence, including past operating 
results, the existence of cumulative losses in the most recent fiscal years, estimates of future taxable income and the feasibility 
of tax planning strategies.

The measurement of current and deferred income tax assets and liabilities is based on provisions of enacted tax laws 
and involves uncertainties in the application of tax regulations in the U.S. and other tax jurisdictions. Because our interpretation 
of  complex  tax  law  may  impact  the  measurement  of  current  and  deferred  income  taxes,  actual  results  may  differ  from  these 
estimates under different assumptions regarding the application of tax law.

The Tax Act includes the global intangible low-taxed income, GILTI, provision. This provision requires inclusion in 
the  Company’s  U.S.  income  tax  return  the  earnings  of  certain  foreign  subsidiaries.  The  Company  has  elected  to  treat  taxes 
associated  with  the  GILTI  provision  using  the  Period  Cost  Method  and  thus  has  not  recorded  deferred  taxes  for  basis 
differences under this regime.

See Note 3—“Summary of Significant Accounting Policies” to our consolidated financial statements in Part II, Item 8 
of this Annual Report on Form 10-K for additional information regarding these critical accounting policies and other significant 
accounting policies.

There have been no other significant changes to the Company's critical accounting policies and estimates during fiscal 

year 2022.

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 1—“Organization and Basis of Presentation” to our Consolidated Financial Statements in Part II, Item 8 of 

this Annual Report on Form 10-K for information regarding recent accounting pronouncements.

128

ITEM 7A. 

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Credit Risk

Credit  risk  arises  from  potential  non-performance  by  counterparties  and  customers.  BGC  Partners  has  established 
policies  and  procedures  to  manage  its  exposure  to  credit  risk.  BGC  Partners  maintains  a  thorough  credit  approval  process  to 
limit exposure to counterparty risk and employs stringent monitoring to control the counterparty risk from its matched principal 
and  agency  businesses.  BGC  Partners’  account  opening  and  counterparty  approval  process  includes  verification  of  key 
customer  identification,  anti-money  laundering  verification  checks  and  a  credit  review  of  financial  and  operating  data.  The 
credit  review  process  includes  establishing  an  internal  credit  rating  and  any  other  information  deemed  necessary  to  make  an 
informed  credit  decision,  which  may  include  correspondence,  due  diligence  calls  and  a  visit  to  the  entity’s  premises,  as 
necessary.

Credit  approval  is  granted  subject  to  certain  trading  limits  and  may  be  subject  to  additional  conditions,  such  as  the 
receipt  of  collateral  or  other  credit  support.  Ongoing  credit  monitoring  procedures  include  reviewing  periodic  financial 
statements and publicly available information on the client and collecting data from credit rating agencies, where available, to 
assess the ongoing financial condition of the client.

In addition, BGC Partners incurs limited credit risk related to certain brokerage activities. The counterparty risk relates 
to the collectability of the outstanding brokerage fee receivables. The review process includes monitoring both the clients and 
the related brokerage receivables. The review includes an evaluation of the ongoing collection process and an aging analysis of 
the brokerage receivables.

Principal Transaction Risk

Through its subsidiaries, BGC Partners executes matched principal transactions in which it acts as a “middleman” by 
serving as counterparty to both a buyer and a seller in matching back-to-back trades. These transactions are then settled through 
a  recognized  settlement  system  or  third-party  clearing  organization.  Settlement  typically  occurs  within  one  to  three  business 
days after the trade date. Cash settlement of the transaction occurs upon receipt or delivery of the underlying instrument that 
was  traded.  BGC  Partners  generally  avoids  settlement  of  principal  transactions  on  a  free-of-payment  basis  or  by  physical 
delivery of the underlying instrument. However, free-of-payment transactions may occur on a very limited basis.

The  number  of  matched  principal  trades  BGC  Partners  executes  has  continued  to  grow  as  compared  to  prior  years. 
Receivables from broker-dealers, clearing organizations, customers and related broker-dealers and Payables to broker-dealers, 
clearing organizations, customers and related broker-dealers on the Company’s Consolidated Statements of Financial Condition 
primarily  represent  the  simultaneous  purchase  and  sale  of  the  securities  associated  with  those  matched  principal  transactions 
that  have  not  settled  as  of  their  stated  settlement  dates.  BGC  Partners’  experience  has  been  that  substantially  all  of  these 
transactions  ultimately  settle  at  the  contracted  amounts,  however,  the  ability  to  settle  has  the  potential  to  be  impacted  by 
unforeseen circumstances.

Market Risk

Market risk refers to the risk that a change in the level of one or more market prices, rates, indices or other factors will 
result  in  losses  for  a  specified  position.  BGC  Partners  may  allow  certain  of  its  desks  to  enter  into  unmatched  principal 
transactions in the ordinary course of business and hold long and short inventory positions. These transactions are primarily for 
the purpose of facilitating clients’ execution needs, adding liquidity to a market or attracting additional order flow. As a result, 
BGC  Partners  may  have  market  risk  exposure  on  these  transactions.  BGC  Partners’  exposure  varies  based  on  the  size  of  its 
overall positions, the risk characteristics of the instruments held and the amount of time the positions are held before they are 
disposed of. BGC Partners has limited ability to track its exposure to market risk and unmatched positions on an intra-day basis; 
however, it attempts to mitigate its market risk on these positions by strict risk limits, extremely limited holding periods and 
hedging its exposure. These positions are intended to be held short term to facilitate customer transactions. However, due to a 
number of factors, including the nature of the position and access to the market on which it trades, BGC Partners may not be 
able to unwind the position and it may be forced to hold the position for a longer period than anticipated. All positions held 
longer than intra-day are marked to market.

We also have investments in equity securities, which are publicly-traded, and which had a fair value of $0.3 million as 
of  December  31,  2022.  Investments  in  equity  securities  carry  a  degree  of  risk,  as  there  can  be  no  assurance  that  the  equity 
securities will not lose value and, in general, securities markets can be volatile and unpredictable. As a result of these different 
market risks, our holdings of equity securities could be materially and adversely affected. We may seek to minimize the effect 
of price changes on a portion of our investments in equity securities through the use of derivative contracts. However, there can 
be no assurance that our hedging activities will be adequate to protect us against price risks associated with our investments in 
equity  securities.  See  Note  11—“Derivatives”  and  Note  12—“Fair  Value  of  Financial  Assets  and  Liabilities”  to  our 

129

Consolidated  Financial  Statements  in  Part  II,  Item  8  of  this  Annual  Report  on  Form  10-K  for  further  information  regarding 
these investments and related hedging activities.

Our  risk  management  procedures  and  strict  limits  are  designed  to  monitor  and  limit  the  risk  of  unintended  loss  and 
have  been  effective  in  the  past.  However,  there  is  no  assurance  that  these  procedures  and  limits  will  be  effective  at  limiting 
unanticipated losses in the future. Adverse movements in the securities positions or a downturn or disruption in the markets for 
these positions could result in a substantial loss. In addition, principal gains and losses resulting from these positions could on 
occasion have a disproportionate effect, positive or negative, on BGC Partners’ Consolidated Financial Condition and results of 
operations for any particular reporting period.

Operational Risk

Our  businesses  are  highly  dependent  on  our  ability  to  process  a  large  number  of  transactions  across  numerous  and 
diverse  markets  in  many  currencies  on  a  daily  basis.  If  any  of  our  data  processing  systems  do  not  operate  properly  or  are 
disabled or if there are other shortcomings or failures in our internal processes, people or systems, we could suffer impairment 
to our liquidity, financial loss, a disruption of our businesses, liability to clients, regulatory intervention or reputational damage. 
These  systems  may  fail  to  operate  properly  or  become  disabled  as  a  result  of  events  that  are  wholly  or  partially  beyond  our 
control, including cybersecurity incidents, a disruption of electrical or communications services or our inability to occupy one 
or  more  of  our  buildings.  The  inability  of  our  systems  to  accommodate  an  increasing  volume  of  transactions  could  also 
constrain our ability to expand our businesses.

In addition, despite our contingency plans, our ability to conduct business may be adversely impacted by a disruption 
in the infrastructure that supports our businesses and the communities in which they are located. This may include a disruption 
involving  electrical,  communications,  transportation  or  other  services  used  by  us  or  third  parties  with  whom  we  conduct 
business.

Further, our operations rely on the secure processing, storage and transmission of confidential and other information 
on our computer systems and networks. Although we take protective measures such as software programs, firewalls and similar 
technology to maintain the confidentiality, integrity and availability of our and our clients’ information, the nature of the threats 
continue to evolve. As a result, our computer systems, software and networks may be vulnerable to unauthorized access, loss or 
destruction  of  data  (including  confidential  client  information),  account  takeovers,  unavailability  or  disruption  of  service, 
computer viruses, acts of vandalism, or other malicious code, cyber-attacks and other events that could have an adverse security 
impact. There have also been an increasing number of malicious cyber incidents in recent years in various industries, including 
ours.  Any  such  cyber  incidents  involving  our  computer  systems  and  networks,  or  those  of  third  parties  important  to  our 
businesses, could present risks to our operations.

Foreign Currency Risk

BGC Partners is exposed to risks associated with changes in FX rates. Changes in FX rates create volatility in the U.S. 
dollar  equivalent  of  the  Company’s  revenues  and  expenses.  In  addition,  changes  in  the  remeasurement  of  BGC  Partners’ 
foreign currency denominated financial assets and liabilities are recorded as part of its results of operations and fluctuate with 
changes in foreign currency rates. BGC monitors the net exposure in foreign currencies on a daily basis and hedges its exposure 
as deemed appropriate with highly rated major financial institutions.

The majority of the Company’s foreign currency exposure is related to the U.S. dollar versus the pound sterling and 
the euro. For the financial assets and liabilities denominated in the pound sterling and euro, including foreign currency hedge 
positions related to these currencies, we evaluated the effects of a 10% shift in exchange rates between those currencies and the 
U.S.  dollar,  holding  all  other  assumptions  constant.  The  analysis  identified  the  stress-tested  scenario  as  the  U.S.  dollar 
weakening  against  both  the  euro  and  against  the  pound  sterling.  If  as  of  December  31,  2022,  the  U.S.  dollar  had  weakened 
against both the euro and the pound sterling by 10%, the currency movements would have had an aggregate negative impact on 
our net income of approximately $5.2 million.

Interest Rate Risk

BGC Partners had $1,049.2 million in fixed-rate debt outstanding as of December 31, 2022. These debt obligations are 
not currently subject to fluctuations in interest rates, although in the event of refinancing or issuance of new debt, such debt 
could  be  subject  to  changes  in  interest  rates.  In  addition,  as  of  December  31,  2022,  BGC  Partners  had  no  borrowings 
outstanding  under  its  Revolving  Credit  Agreement.  The  Revolving  Credit  Agreement  interest  rate  on  borrowings  was 
previously based on LIBOR or a defined base rate plus additional margin. On March 10, 2022, the Revolving Credit Agreement 
was  amended,  restated  and  increased,  and  the  corresponding  interest  rate  on  any  borrowings  under  its  Revolving  Credit 
Agreement is based on SOFR or a defined base rate plus additional margin.

130

Disaster Recovery

Our  processes  address  disaster  recovery  concerns.  We  operate  most  of  our  technology  from  U.S.  and  U.K.  primary 
data centers. Either site alone is typically capable of running all of our essential systems. Replicated instances of this technology 
are  maintained  in  our  redundant  data  centers.  Our  data  centers  are  generally  built  and  equipped  to  best-practice  standards  of 
physical security with appropriate environmental monitoring and safeguards.

BGC  Technology  conducts  annual  disaster  recovery  training  exercises  for  each  primary  data  center  where  failover 

procedures are tested against defined Recovery Time Objectives (RTOs).

131

ITEM 8. 

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

BGC Partners, Inc. and Subsidiaries

Consolidated Financial Statements for the years ended December 31, 2022, 2021 and 2020

Reports of Independent Registered Public Accounting Firm  (PCAOB ID 42)

Consolidated Financial Statements—

Consolidated Statements of Financial Condition

Consolidated Statements of Operations

Consolidated Statements of Comprehensive Income (Loss)

Consolidated Statements of Cash Flows

Consolidated Statements of Changes in Equity

Notes to Consolidated Financial Statements

133

136

137

138

139

141

144

132

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of BGC Partners, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial condition of BGC Partners, Inc.  (the Company) as of 
December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive income (loss), cash flows and 
changes in equity for each of the three years in the period ended December 31, 2022, and the related notes and the financial 
statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In 
our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company 
at December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period 
ended December 31, 2022, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) 
(PCAOB),  the  Company's  internal  control  over  financial  reporting  as  of  December  31,  2022,  based  on  criteria  established  in 
Internal  Control-Integrated  Framework  issued  by  the  Committee  of  Sponsoring  Organizations  of  the  Treadway  Commission 
(2013 framework) and our report dated March 1, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on 
the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are 
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable 
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the 
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to 
error  or  fraud.  Our  audits  included  performing  procedures  to  assess  the  risks  of  material  misstatement  of  the  financial 
statements,  whether  due  to  error  or  fraud,  and  performing  procedures  that  respond  to  those  risks.  Such  procedures  included 
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included 
evaluating  the  accounting  principles  used  and  significant  estimates  made  by  management,  as  well  as  evaluating  the  overall 
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that 
was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that 
are  material  to  the  financial  statements  and  (2)  involved  our  especially  challenging,  subjective  or  complex  judgments.  The 
communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken 
as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit 
matter or on the accounts or disclosures to which it relates.

133

Accounting for Income Taxes

Description of the Matter As discussed in Notes 3 and 20 to the consolidated financial statements, the Company is subject to 
income  taxes  in  the  U.S.  and  numerous  foreign  jurisdictions,  which  affect  the  Company’s 
provision for income taxes. The provision for income taxes is an estimate based on management’s 
understanding of current enacted tax laws and tax rates of each tax jurisdiction. For the year-ended 
December 31, 2022, the Company recognized a consolidated provision for income taxes of $38.6 
million.

Auditing  management’s  calculation  of  the  provision  for  income  taxes  was  complex  because  the 
Company’s  global  structure  required  an  assessment  of  the  Company’s  application  of  tax  laws  in 
multiple jurisdictions including the income tax impact of the legal entity ownership structure. The 
assessment  of  tax  positions  involves  the  evaluation  and  application  of  complex  statutes  and 
regulations  which  are  subject  to  legal  and  factual  interpretation.  Our  audit  procedures  required 
significant  audit  effort  including  the  use  of  our  tax  professionals  to  assist  in  evaluating  the 
provision for income taxes.

How We Addressed the 
Matter in Our Audit

We obtained an understanding, evaluated the design and tested the operating effectiveness of the 
Company’s  controls  related  to  the  Company’s  global  tax  structure.    For  example,  we  tested 
management’s controls over the completeness and accuracy of the data utilized, the effective tax 
rate  reconciliation  and  the  evaluation  of  permanent  and  temporary  differences  within  various 
jurisdictions.  

To  test  the  Company’s  provision  for  income  taxes  and  to  address  the  risks  associated  with  the 
complexity of the Company’s global tax structure, we performed audit procedures that included, 
among  others,  evaluating  the  income  tax  impact  of  the  Company’s  structure  and  operations  and 
considered  the  impact  of  any  changes  in  the  current  year.  We  used  our  tax  professionals  with 
specialized skill and knowledge to assist in evaluating the provision for income taxes including the 
application of relevant local and foreign tax laws to management’s calculation methodologies and 
tax positions. Additionally, we tested the related effective tax rate reconciliation, evaluated the tax 
impact of permanent and temporary differences, and tested the application of new regulations and 
other authoritative guidance.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2008.

New York, New York
March 1, 2023

134

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of BGC Partners, Inc.

Opinion on Internal Control Over Financial Reporting

We  have  audited  BGC  Partners,  Inc.’s  internal  control  over  financial  reporting  as  of  December  31,  2022,  based  on  criteria 
established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway 
Commission  (2013  framework)  (the  COSO  criteria).  In  our  opinion,  BGC  Partners,  Inc.  (the  Company)  maintained,  in  all 
material respects, effective internal control over financial reporting as of December 31, 2022, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) 
(PCAOB), the consolidated statements of financial condition of the Company as of December 31, 2022 and 2021, the related 
consolidated  statements  of  operations,  comprehensive  income  (loss),  cash  flows  and  changes  in  equity  for  each  of  the  three 
years in the period ended December 31, 2022, and the related notes and the financial statement schedule listed in the Index at 
Item 15(a)(2) and our report dated March 1, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

The  Company’s  management  is  responsible  for  maintaining  effective  internal  control  over  financial  reporting  and  for  its 
assessment of the effectiveness of internal control over financial reporting included in the accompanying management’s report 
on  Internal  Control  over  Financial  Reporting.  Our  responsibility  is  to  express  an  opinion  on  the  Company’s  internal  control 
over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be 
independent  with  respect  to  the  Company  in  accordance  with  the  U.S.  federal  securities  laws  and  the  applicable  rules  and 
regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the 
audit  to  obtain  reasonable  assurance  about  whether  effective  internal  control  over  financial  reporting  was  maintained  in  all 
material respects.

Our  audit  included  obtaining  an  understanding  of  internal  control  over  financial  reporting,  assessing  the  risk  that  a  material 
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and 
performing  such  other  procedures  as  we  considered  necessary  in  the  circumstances.  We  believe  that  our  audit  provides  a 
reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A  company’s  internal  control  over  financial  reporting  is  a  process  designed  to  provide  reasonable  assurance  regarding  the 
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally 
accepted  accounting  principles.  A  company’s  internal  control  over  financial  reporting  includes  those  policies  and  procedures 
that  (1)  pertain  to  the  maintenance  of  records  that,  in  reasonable  detail,  accurately  and  fairly  reflect  the  transactions  and 
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit 
preparation  of  financial  statements  in  accordance  with  generally  accepted  accounting  principles,  and  that  receipts  and 
expenditures  of  the  company  are  being  made  only  in  accordance  with  authorizations  of  management  and  directors  of  the 
company;  and  (3)  provide  reasonable  assurance  regarding  prevention  or  timely  detection  of  unauthorized  acquisition,  use,  or 
disposition of the company’s assets that could have a material effect on the financial statements.

Because  of  its  inherent  limitations,  internal  control  over  financial  reporting  may  not  prevent  or  detect  misstatements.  Also, 
projections  of  any  evaluation  of  effectiveness  to  future  periods  are  subject  to  the  risk  that  controls  may  become  inadequate 
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

New York, New York
March 1, 2023

135

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(cid:16)(cid:19)(cid:19)

Exchange™,  Fenics  UST™,  Fenics  FX™,  Fenics  Repo™,  Fenics  Direct™,  Fenics  MID™,  Fenics  Market  Data™,  Fenics 
GO™, Fenics PortfolioMatch™, kACE2®, and Lucera®.

BGC, BGC Partners, BGC Trader, GFI, GFI Ginga, CreditMatch, Fenics, Fenics.com, FMX, Sunrise Brokers, Poten & 
Partners,  RP  Martin,  kACE2,  Capitalab,  Swaptioniser,  CBID,  and  Lucera  are  trademarks/service  marks,  and/or  registered 
trademarks/service marks of BGC Partners, Inc. and/or its affiliates.

The Company’s customers include many of the world’s largest banks, broker-dealers, investment banks, trading firms, 
hedge funds, governments, corporations, and investment firms. BGC Partners has dozens of offices globally in major markets 
including New York and London, as well as in Bahrain, Beijing, Bogotá, Brisbane, Cape Town, Chicago, Copenhagen, Dubai, 
Dublin,  Frankfurt,  Geneva,  Hong  Kong,  Houston,  Johannesburg,  Madrid,  Manila,  Melbourne,  Mexico  City,  Miami,  Milan, 
Monaco,  Nyon,  Paris,  Perth,  Rio  de  Janeiro,  Santiago,  São  Paulo,  Seoul,  Shanghai,  Singapore,  Sydney,  Tel  Aviv,  Tokyo, 
Toronto, and Zurich.

Basis of Presentation

The  Company’s  Consolidated  Financial  Statements  and  Notes  to  the  Consolidated  Financial  Statements  have  been 
prepared pursuant to the rules and regulations of the SEC and in conformity with U.S. GAAP. The Company’s Consolidated 
Financial  Statements  include  the  Company’s  accounts  and  all  subsidiaries  in  which  the  Company  has  a  controlling  interest. 
Intercompany  balances  and  transactions  have  been  eliminated  in  consolidation.  Certain  reclassifications  have  been  made  to 
previously reported amounts to conform to the current presentation.

On November 1, 2021, the Company completed the Insurance Business Disposition (see Note 5—"Divestitures" for 

additional information).

On  July  30,  2021,  the  Company  completed  the  purchase  of  the  Futures  Exchange  Group  for  a  purchase  price  of 
$4.9 million at closing, plus the cash held at closing by the Futures Exchange Group, and an earn-out, only payable out of the 
Company's  portion  of  the  profits  of  the  Futures  Exchange  Group,  capped  at  the  amount  Cantor  contributed  to  the  Futures 
Exchange Group prior to closing. 

The Futures Exchange Group acquisition has been determined to be a combination of entities under common control 
that resulted in a change in the reporting entity. Accordingly, the financial results of the Company have been recast to include 
the  financial  results  of  the  Futures  Exchange  Group  in  the  current  and  prior  periods  as  if  the  Futures  Exchange  Group  had 
always  been  consolidated.  The  assets  and  liabilities  of  the  Futures  Exchange  Group  have  been  recorded  in  the  Company's 
Consolidated Statements of Financial Condition at the seller's historical carrying value. The purchase of the Futures Exchange 
Group was accounted for as an equity transaction for the period ended September 30, 2021 (the period in which the transaction 
occurred).

During  the  first  quarter  of  2022,  the  Company  changed  the  name  of  the  brokerage  product  line  formerly  labeled  as 
“Equity derivatives and cash equity” to “Equities” to better align the caption with the underlying activity. The change did not 
result in any reclassification of revenues and had no impact on the Company’s Total brokerage revenues.

During  the  second  quarter  of  2022,  the  Company  combined  "Realized  losses  (gains)  on  marketable  securities", 
"Unrealized  losses  (gains)  on  marketable  securities",  and  "Losses  (gains)  on  other  investments"  on  the  unaudited  Condensed 
Consolidated Statements of Cash Flows into "Losses (gains) on marketable securities and other investments". The recognition 
of  gains  and  losses  related  to  these  investments  are  similar  in  nature  and  immaterial  to  the  financial  statements  in  2022  and 
2021. 

During the third quarter of 2022, the Company renamed "Securities owned" as "Financial instruments owned, at fair 
value"  and  combined  it  with  "Marketable  securities"  on  the  unaudited  Condensed  Consolidated  Statements  of  Financial 
Condition. In addition, "Losses (gains) on marketable securities and other investments" was renamed as "Unrealized/realized 
losses (gains) on financial instruments owned, at fair value and other investments" on the unaudited Condensed Consolidated 
Statements of Cash Flows.

The  Consolidated  Financial  Statements  contain  all  normal  and  recurring  adjustments  that,  in  the  opinion  of 
management,  are  necessary  for  a  fair  presentation  of  the  Consolidated  Statements  of  Financial  Condition,  the  Consolidated 
Statements of Operations, the Consolidated Statements of Comprehensive Income (Loss), the Consolidated Statements of Cash 
Flows and the Consolidated Statements of Changes in Equity of the Company for the periods presented.

Spin-Off of Newmark

On November  30,  2018,  the  Company  completed the Spin-Off. See Note  2—"Limited  Partnership Interests in BGC 

Holdings and Newmark Holdings," and Note 13—"Related Party Transactions" for more information.

145

Recently Adopted Accounting Pronouncements

In  December  2019,  the  FASB  issued  ASU  No.  2019-12,  Income  Taxes  (Topic  740):  Simplifying  the  Accounting  for 
Income Taxes. The ASU is part of the FASB’s simplification initiative, and it is expected to reduce cost and complexity related 
to  accounting  for  income  taxes  by  eliminating  certain  exceptions  to  the  guidance  in  ASC  740,  Income  Taxes  related  to  the 
approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition 
of deferred tax liabilities for outside basis differences. The guidance also simplifies aspects of the accounting for franchise taxes 
and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of 
goodwill.  BGC  adopted  the  standard  on  the  required  effective  date  beginning  January  1,  2021  on  a  prospective  basis.  The 
adoption of the standard did not have a material impact on the Company’s Consolidated Financial Statements.

In  January  2020,  the  FASB  issued  ASU  No.  2020-01,  Investments—Equity  Securities  (Topic  321),  Investments—
Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between 
Topic  321,  Topic  323,  and  Topic  815  (a  consensus  of  the  FASB  Emerging  Issues  Task  Force).  These  amendments  improve 
previous guidance by reducing diversity in practice and increasing comparability of the accounting for the interactions between 
these  codification  topics  as  they  pertain  to  certain  equity  securities,  investments  under  the  equity  method  of  accounting  and 
forward contracts or purchased options to purchase securities that, upon settlement of the forward contract or exercise of the 
purchased  option,  would  be  accounted  for  under  the  equity  method  of  accounting  or  the  fair  value  option.  BGC  adopted  the 
standard on the required effective date beginning January 1, 2021 on a prospective basis. The adoption of this guidance did not 
have a material impact on the Company’s Consolidated Financial Statements.

In  October  2020,  the  FASB  issued  ASU  No.  2020-10,  Codification  Improvements.  The  standard  amends  the 
Codification  by  moving  existing  disclosure  requirements  to  (or  adding  appropriate  references  in)  the  relevant  disclosure 
sections.  The  ASU  also  clarifies  various  provisions  of  the  Codification  by  amending  and  adding  new  headings,  cross-
referencing, and refining or correcting terminology. BGC adopted the standard on the required effective date beginning January 
1, 2021 and it was applied using a modified retrospective method of transition. The adoption of this guidance did not have an 
impact on the Company’s Consolidated Financial Statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of 
Reference Rate Reform on Financial Reporting. The guidance is designed to provide relief from the accounting analysis and 
impacts  that  may  otherwise  be  required  for  modifications  to  agreements  (e.g.,  loans,  debt  securities,  derivatives,  and 
borrowings) necessitated by reference rate reform as entities transition away from LIBOR and other interbank offered rates to 
alternative  reference  rates.  This  ASU  also  provides  optional  expedients  to  enable  companies  to  continue  to  apply  hedge 
accounting to certain hedging relationships impacted by reference rate reform. Application of the guidance is optional and only 
available in certain situations. The ASU is effective upon issuance and generally can be applied through December 31, 2022. In 
January  2021,  the  FASB  issued  ASU  No.  2021-01,  Reference  Rate  Reform  (Topic  848):  Scope.  The  amendments  in  this 
standard are elective and principally apply to entities that have derivative instruments that use an interest rate for margining, 
discounting,  or  contract  price  alignment  that  is  modified  as  a  result  of  reference  rate  reform  (referred  to  as  the  “discounting 
transition”).  The  standard  expands  the  scope  of  ASC  848,  Reference  Rate  Reform  and  allows  entities  to  elect  optional 
expedients to derivative contracts impacted by the discounting transition. Similar to ASU No. 2020-04, provisions of this ASU 
are  effective  upon  issuance  and  generally  can  be  applied  through  December  31,  2022.  During  the  first  quarter  of  2022,  the 
Company  elected  to  apply  the  practical  expedients  to  modifications  of  qualifying  contracts  as  continuation  of  the  existing 
contract  rather  than  as  a  new  contract.  The  adoption  of  the  new  guidance  did  not  have  an  impact  on  the  Company's 
Consolidated Financial Statements.

In  August  2020,  the  FASB  issued  ASU  No.  2020-06,  Debt—Debt  with  Conversion  and  Other  Options  (Subtopic 
470-20)  and  Derivatives  and  Hedging—Contracts  in  Entity’s  Own  Equity  (Subtopic  815-40):  Accounting  for  Convertible
Instruments  and  Contracts  in  an  Entity’s  Own  Equity.  The  standard  is  expected  to  reduce  complexity  and  improve
comparability  of  financial  reporting  associated  with  accounting  for  convertible  instruments  and  contracts  in  an  entity’s  own
equity. The ASU also enhances information transparency by making targeted improvements to the related disclosures guidance.
Additionally, the amendments affect the diluted EPS calculation for instruments that may be settled in cash or shares and for
convertible instruments. BGC adopted the standard on the required effective date beginning January 1, 2022, and it was applied
using  a  modified  retrospective  method  of  transition.  The  adoption  of  this  guidance  did  not  have  a  material  impact  on  the
Company's Consolidated Financial Statements.

In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business 
Entities  about  Government  Assistance.  The  standard  requires  business  entities  to  make  annual  disclosures  about  transactions 
with  a  government  they  account  for  by  analogizing  to  a  grant  or  contribution  accounting  model.  The  guidance  is  aimed  at 
increasing transparency about government assistance transactions that are not in the scope of other U.S. GAAP guidance. The 
ASU requires disclosure of the nature and significant terms and considerations of the transactions, the accounting policies used 
and the effects of those transactions on an entity’s financial statements. The new standard became effective for the Company’s 

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financial statements issued for annual reporting periods beginning on January 1, 2022, and it will be applied prospectively. The 
adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements.

New Accounting Pronouncements

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract 
Assets  and  Contract  Liabilities  from  Contracts  with  Customers.  The  standard  improves  the  accounting  for  acquired  revenue 
contracts  with  customers  in  a  business  combination  by  addressing  diversity  in  practice  and  inconsistency  related  to  the 
recognition of an acquired contract liability, as well as payment terms and their effect on subsequent revenue recognized by the 
acquirer. The ASU requires companies to apply guidance in ASC 606, Revenue from Contracts with Customers, to recognize 
and measure contract assets and contract liabilities from contracts with customers acquired in a business combination, and, thus, 
creates  an  exception  to  the  general  recognition  and  measurement  principle  in  ASC  805,  Business  Combinations.  The  new 
standard  became  effective  for  the  Company  beginning  January  1,  2023,  and  will  be  applied  prospectively  for  business 
combinations occurring on or after the effective date. The adoption of this guidance is not expected to have a material impact on 
the Company’s Consolidated Financial Statements.

In  March  2022,  the  FASB  issued  ASU  No.  2022-02,  Financial  Instruments—Credit  Losses  (Topic  326):  Troubled 
Debt  Restructurings  and  Vintage  Disclosures.  The  guidance  is  intended  to  improve  the  decision  usefulness  of  information 
provided to investors about certain loan refinancings, restructurings, and write-offs. The standard eliminates the recognition and 
measurement guidance on TDRs for creditors that have adopted ASC 326, Financial Instruments — Credit Losses and requires 
them to make enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. The new guidance 
also  requires  public  business  entities  to  present  current-period  gross  write-offs  (on  a  current  year-to-date  basis  for  interim-
period  disclosures)  by  year  of  origination  in  their  vintage  disclosures.  The  new  standard  became  effective  for  the  Company 
beginning  January  1,  2023.  The  guidance  for  recognition  and  measurement  of  TDRs  will  be  applied  using  a  prospective 
transition method, and the amendments related to disclosures will be applied prospectively. The adoption of this guidance is not 
expected to have a material impact on the Company’s Consolidated Financial Statements.

In September 2022, the FASB issued ASU No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): 
Debt Restructurings Disclosure of Supplier Finance Program Obligations. The guidance requires entities to disclose the key 
terms  of  supplier  finance  programs  they  use  in  connection  with  the  purchase  of  goods  and  services  along  with  information 
about their obligations under these programs, including a rollforward of those obligations. The new standard became effective 
for the Company beginning on January 1, 2023, except for the rollforward requirement, which is effective beginning January 1, 
2024.  The  guidance  requires  retrospective  application  to  all  periods  in  which  a  balance  sheet  is  presented,  except  for  the 
rollforward requirement, which will be applied prospectively. The adoption of this guidance is not expected to have a material 
impact on the Company’s Consolidated Financial Statements.

In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset 
Date of Topic 848. ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform 
on Financial Reporting provided optional guidance to ease the potential burden in accounting for (or recognizing the effects of) 
reference  rate  reform  on  financial  reporting.  The  ASU  was  effective  upon  issuance  and  generally  could  be  applied  through 
December  31,  2022.  Because  the  current  relief  in  ASC  848,  Reference  Rate  Reform  may  not  cover  a  period  of  time  during 
which a significant number of modifications may take place, the amendments in ASU No. 2022-06 defer the sunset date from 
December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in ASC 848. The 
ASU  is  effective  upon  issuance.  Management  is  currently  evaluating  the  impact  of  the  new  standard  on  the  Company’s 
consolidated financial statements.

2.

Limited Partnership Interests in BGC Holdings and Newmark Holdings

BGC Partners is a holding company with no direct operations and conducts substantially all of its operations through
its  operating  subsidiaries.  Virtually  all  of  the  Company’s  consolidated  net  assets  and  net  income  are  those  of  consolidated 
variable  interest  entities.  BGC  Holdings  is  a  consolidated  subsidiary  of  the  Company  for  which  the  Company  is  the  general 
partner. The Company and BGC Holdings jointly own BGC U.S. OpCo and BGC Global OpCo, the two operating partnerships. 
In addition, Newmark Holdings is a consolidated subsidiary of Newmark for which Newmark is the general partner. Newmark 
and  Newmark  Holdings  jointly  own  Newmark  OpCo,  the  operating  partnership.  Listed  below  are  the  limited  partnership 
interests in BGC Holdings and Newmark Holdings. The FPUs, LPUs and limited partnership interests held by Cantor, each as 
described below, collectively represent all of the limited partnership interests in BGC Holdings and Newmark Holdings.

As  a  result  of  the  Separation,  limited  partnership  interests  in  Newmark  Holdings  were  distributed  to  the  holders  of 
limited partnership interests in BGC Holdings, whereby each holder of BGC Holdings limited partnership interests at that time 
who held a BGC Holdings limited partnership interest received a corresponding Newmark Holdings limited partnership interest, 
determined  by  the  Contribution  Ratio,  which  was  equal  to  a  BGC  Holdings  limited  partnership  interest  multiplied  by  one 

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divided  by  2.2,  divided  by  the  Exchange  Ratio.  Initially,  the  Exchange  Ratio  equaled  one,  so  that  each  Newmark  Holdings 
limited partnership interest was exchangeable for one share of Newmark Class A common stock. For reinvestment, acquisition 
or  other  purposes,  Newmark  may  determine  on  a  quarterly  basis  to  distribute  to  its  stockholders  a  smaller  percentage  than 
Newmark  Holdings  distributes  to  its  equity  holders  (excluding  tax  distributions  from  Newmark  Holdings)  of  cash  that  it 
received from Newmark OpCo. In such circumstances, the Separation and Distribution Agreement provides that the Exchange 
Ratio  will  be  reduced  to  reflect  the  amount  of  additional  cash  retained  by  Newmark  as  a  result  of  the  distribution  of  such 
smaller percentage, after the payment of taxes. The Exchange Ratio as of December 31, 2022 equaled 0.9303.

Founding/Working Partner Units

Founding/Working Partners have FPUs in BGC Holdings and Newmark Holdings. The Company accounts for FPUs 
outside  of  permanent  capital,  as  “Redeemable  partnership  interest,”  in  the  Company’s  Consolidated  Statements  of  Financial 
Condition.  This  classification  is  applicable  to  Founding/Working  Partner  units  because  these  units  are  redeemable  upon 
termination of a partner, including a termination of employment, which can be at the option of the partner and not within the 
control of the issuer.

FPUs are held by limited partners who are employees and generally receive quarterly allocations of net income. Upon 
termination of employment or otherwise ceasing to provide substantive services, the FPUs are generally redeemed, and the unit 
holders are no longer entitled to participate in the quarterly allocations of net income. Since these allocations of net income are 
cash distributed on a quarterly basis and are contingent upon services being provided by the unit holder, they are reflected as a 
component of compensation expense under “Equity-based compensation and allocations of net income to limited partnership 
units and FPUs” in the Company’s Consolidated Statements of Operations.

Limited Partnership Units

Certain BGC employees hold LPUs in BGC Holdings and Newmark Holdings (e.g., REUs, RPUs, PSUs, and PSIs). 
Prior  to  the  Separation,  certain  employees  of  both  BGC  and  Newmark  received  LPUs  in  BGC  Holdings.  As  a  result  of  the 
Separation,  these  employees  were  distributed  LPUs  in  Newmark  Holdings  equal  to  a  BGC  Holdings  LPU  multiplied  by  the 
Contribution  Ratio.  Subsequent  to  the  Separation,  BGC  employees  are  only  granted  LPUs  in  BGC  Holdings,  and  Newmark 
employees are only granted LPUs in Newmark Holdings.

Generally, LPUs receive quarterly allocations of net income, which are cash distributed and generally are contingent 
upon services being provided by the unit holder. As prescribed in U.S. GAAP guidance, following the Spin-Off, the quarterly 
allocations  of  net  income  on  BGC  Holdings  and  Newmark  Holdings  LPUs  held  by  BGC  employees  are  reflected  as  a 
component of compensation expense under “Equity-based compensation and allocations of net income to limited partnership 
units and FPUs” in the Company’s Consolidated Statements of Operations, and the quarterly allocations of net income on BGC 
Holdings LPUs held by Newmark employees are reflected as a component of “Net income (loss) attributable to noncontrolling 
interest in subsidiaries” in the Company’s Consolidated Statements of Operations. From time to time, the Company also issues 
BGC LPUs as part of the consideration for acquisitions.

Certain of these LPUs in BGC Holdings and Newmark Holdings, such as REUs, entitle the holders to receive post-
termination payments equal to the notional amount of the units in four equal yearly installments after the holder’s termination. 
These LPUs held by BGC employees are accounted for as post-termination liability awards, and in accordance with U.S. GAAP 
guidance, the Company records compensation expense for the awards based on the change in value at each reporting date in the 
Company’s  Consolidated  Statements  of  Operations  as  part  of  “Equity-based  compensation  and  allocations  of  net  income  to 
limited partnership units and FPUs”.

The Company has also awarded certain Preferred Units. Each quarter, the net profits of BGC Holdings and Newmark 
Holdings are allocated to such units at a rate of either 0.6875% (which is 2.75% per calendar year) or such other amount as set 
forth  in  the  award  documentation.  These  allocations  are  deducted  before  the  calculation  and  distribution  of  the  quarterly 
partnership distribution for the remaining partnership interests and are generally contingent upon services being provided by the 
unit  holder.  The  Preferred  Units  are  not  entitled  to  participate  in  partnership  distributions  other  than  with  respect  to  the 
Preferred Distribution. Preferred Units may not be made exchangeable into Class A common stock, and are only entitled to the 
Preferred  Distribution;  accordingly,  they  are  not  included  in  the  fully  diluted  share  count.  The  quarterly  allocations  of  net 
income  on  Preferred  Units  are  reflected  the  same  as  those  of  the  LPUs  described  above  in  the  Company’s  Consolidated 
Statements  of  Operations.  After  deduction  of  the  Preferred  Distribution,  the  remaining  partnership  units  generally  receive 
quarterly  allocations  of  net  income  based  on  their  weighted-average  pro  rata  share  of  economic  ownership  of  the  operating 
subsidiaries.  Preferred  Units  are  granted  in  connection  with  the  grant  of  certain  LPUs,  such  as  PSUs,  which  may  be  granted 
exchangeability or redeemed in connection with the issuance of shares of common stock to cover the withholding taxes owed 
by the unit holder, rather than issuing the gross amount of shares to employees, subject to cashless withholding of shares to pay 
applicable withholding taxes.

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Cantor Units

Cantor  holds  limited  partnership  interests  in  BGC  Holdings.  Cantor  units  are  reflected  as  a  component  of 
“Noncontrolling  interest  in  subsidiaries”  in  the  Company’s  Consolidated  Statements  of  Financial  Condition.  Cantor  receives 
allocations  of  net  income  (loss),  which  are  cash  distributed  on  a  quarterly  basis  and  are  reflected  as  a  component  of  “Net 
income (loss) attributable to noncontrolling interest in subsidiaries” in the Company’s Consolidated Statements of Operations. 
Cantor units in BGC Holdings are generally exchangeable for up to 23.6 million shares of BGC Class B common stock.

General

Certain of the limited partnership interests, described above, have been granted exchangeability into shares of BGC or 
Newmark Class A common stock, and additional limited partnership interests may become exchangeable into shares of BGC or 
Newmark Class A common stock. In addition, certain limited partnership interests have been granted the right to exchange into 
or have been exchanged into a partnership unit with a capital account, such as HDUs. HDUs have a stated capital account which 
is initially based on the closing trading price of Class A common stock at the time the HDU is granted. HDUs participate in 
quarterly partnership distributions and are generally not exchangeable into shares of Class A common stock.

Subsequent to the Spin-Off, limited partnership interests in BGC Holdings held by a partner or Cantor may become 
exchangeable  for  BGC  Class  A  or  BGC  Class  B  common  stock  on  a  one-for-one  basis,  and  limited  partnership  interests  in 
Newmark  Holdings  held  by  a  partner  or  Cantor  may  become  exchangeable  for  a  number  of  shares  of  Newmark  Class  A  or 
Newmark Class B common stock equal to the number of limited partnership interests multiplied by the then-current Exchange 
Ratio. Because limited partnership interests are included in the Company’s fully diluted share count, if dilutive, any exchange 
of limited partnership interests into shares of BGC Class A or BGC Class B common stock would not impact the fully diluted 
number of shares and units outstanding. Because these limited partnership interests generally receive quarterly allocations of net 
income, such exchange would have no significant impact on the cash flows or equity of the Company.

Each  quarter,  net  income  (loss)  is  allocated  between  the  limited  partnership  interests  and  the  Company’s  common 
stockholders. In quarterly periods in which the Company has a net loss, the loss allocation for FPUs, LPUs and Cantor units in 
BGC Holdings is allocated to Cantor and reflected as a component of “Net income (loss) attributable to noncontrolling interest 
in subsidiaries” in the Company’s Consolidated Statements of Operations. In subsequent quarters in which the Company has net 
income,  the  initial  allocation  of  income  to  the  limited  partnership  interests  in  BGC  Holdings  is  to  Cantor  and  is  recorded  as 
“Net income (loss) attributable to noncontrolling interests in subsidiaries,” to recover any losses taken in earlier quarters, with 
the remaining income allocated to the limited partnership interests. This income (loss) allocation process has no impact on the 
net income (loss) allocated to common stockholders.

3.

Summary of Significant Accounting Policies

Use of Estimates:

The  preparation  of  the  Company’s  consolidated  financial  statements  in  conformity  with  U.S.  GAAP  requires 
management  to  make  estimates  and  assumptions  that  affect  the  reported  amounts  of  the  assets  and  liabilities,  revenues  and 
expenses, and the disclosure of contingent assets and liabilities in these consolidated financial statements. Management believes 
that  the  estimates  utilized  in  preparing  these  consolidated  financial  statements  are  reasonable.  Estimates,  by  their  nature,  are 
based  on  judgment  and  available  information.  Actual  results  could  differ  materially  from  the  estimates  included  in  the 
Company’s  consolidated  financial  statements.  Certain  reclassifications  have  been  made  to  previously  reported  amounts  to 
conform to the current period presentation.

Revenue Recognition:

BGC derives its revenues primarily through commissions from brokerage services, the spread between the buy and sell 

prices on matched principal transactions, fees from related parties, data, software and post-trade services, and other revenues.

Commissions:

The  Company  derives  its  commission  revenues  from  securities,  commodities  and  insurance-related  transactions, 
whereby the Company connects buyers and sellers in the OTC and exchange markets and assists in the negotiation of the price 
and  other  material  terms.  These  transactions  result  from  the  provision  of  service  related  to  executing,  settling  and  clearing 
transactions  for  customers.  Trade  execution  and  clearing  services,  when  provided  together,  represent  a  single  performance 
obligation as the services are not separately identifiable in the context of the contract. Commission revenues are recognized at a 
point  in  time  on  the  trade-date,  when  the  customer  obtains  control  of  the  service  and  can  direct  the  use  of,  and  obtain 

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substantially  all  of  the  remaining  benefits  from  the  asset.  The  Company  records  a  receivable  between  the  trade-date  and 
settlement date when payment is received.

Principal Transactions:

Principal  transaction  revenues  are  primarily  derived  from  matched  principal  transactions,  whereby  the  Company 
simultaneously agrees to buy securities from one customer and sell them to another customer. A very limited number of trading 
businesses are allowed to enter into unmatched principal transactions to facilitate a customer’s execution needs for transactions 
initiated by such customers. Revenues earned from principal transactions represent the spread between the buy and sell price of 
the brokered security, commodity or derivative. Principal transaction revenues and related expenses are recognized on a trade-
date basis. Positions held as part of a principal transaction are marked-to-market on a daily basis.

Fees from Related Parties:

Fees  from  related  parties  consist  of  charges  for  back-office  services  provided  to  Cantor  and  its  affiliates,  including 
occupancy  of  office  space,  utilization  of  fixed  assets,  accounting,  operations,  human  resources  and  legal  services,  and 
information  technology.  The  services  are  satisfied  over  time  and  measured  using  a  time-elapsed  measure  of  progress  as  the 
customer receives the benefits of the services evenly throughout the term of the contract. The transaction price is considered 
variable consideration as the level and type of services fluctuate from period to period and revenues are recognized only to the 
extent  it  is  probable  that  a  significant  reversal  in  the  amount  of  cumulative  revenues  recognized  will  not  occur  when  the 
uncertainty  is  resolved.  Fees  from  related  parties  are  determined  based  on  the  cost  incurred  by  the  Company  to  perform  or 
provide the service as evidenced by an allocation of employee expenses or a third-party invoice. Net cash settlements between 
affiliates are generally performed on a monthly basis.

Data, Software and Post-trade:

Data revenues primarily consist of subscription fees and fees from customized one-time sales provided to customers 
either  directly  or  through  third-party  vendors.  Regarding  this  revenue  stream,  the  Company  determined  that  software 
implementation, license usage, and related support services represent a single-performance obligation because the combination 
of these deliverables is necessary for the customer to derive benefit from the data. As such, once implementation is complete, 
monthly subscription fees are billed in advance and recognized on a straight-line basis over the life of the license period.

The  Company  also  provides  software  customization  services  contracted  through  work  orders  that  each  represent  a 
separate  performance  obligation.  Revenue  is  recognized  over  time  using  an  output  method  as  a  measure  of  progress.  As 
circumstances  change  over  time,  the  Company  updates  its  measure  of  progress  to  reflect  any  changes  in  the  outcome  of  the 
performance obligation. Such updates are accounted for as a change in accounting estimate. As a practical expedient, when the 
work-order period is less than 12 months, the Company recognizes revenue upon acceptance from the customer after work is 
completed. The contract price is fixed and billed to the customer as combination of an upfront fee, progress fees, and a post-
delivery fee.

Other Revenues:

Other revenues are earned from various sources, including underwriting and advisory fees.

Other Income (Losses), Net:

Gains (Losses) on Divestitures and Sale of Investments:

Gains (losses) on divestitures and sale of investments is comprised of gains and losses recorded in connection with the 

divestiture of certain businesses or sale of investments (see Note 5—“Divestitures”).

Gains (Losses) on Equity Method Investments:

Gains  (losses)  on  equity  method  investments  represent  the  Company’s  pro-rata  share  of  the  net  gains  and  losses  on 

investments over which the Company has significant influence but which it does not control.

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Other Income (Loss):

Other income (loss) is primarily comprised of gains and losses associated with the movements related to the changes in 
fair  value  and/or  hedges  of  Financial  instruments  owned,  at  fair  value  equity  securities  and  investments  carried  under  the 
measurement alternative (see Note 8—“Financial Instruments Owned, at Fair Value” and Note 14—“Investments”).

Segments:

The Company has one reportable segment (see Note 22—“Segment, Geographic and Product Information”). 

Cash and Cash Equivalents:

The Company considers all highly liquid investments with maturities of 90 days or less at the date of acquisition that 
are not segregated under regulatory requirements, other than those used for trading purposes, to be cash equivalents. Cash and 
cash equivalents include money market funds, deposits with banks, certificates of deposit, commercial paper, and U.S. Treasury 
securities.

Cash Segregated Under Regulatory Requirements:

Cash segregated under regulatory requirements represents funds received in connection with customer activities that 
the  Company  is  obligated  to  segregate  or  set  aside  to  comply  with  regulations  mandated  by  authorities  such  as  the  SEC  and 
FINRA in the U.S. and the FCA in the U.K. that have been promulgated to protect customer assets.

Financial Instruments Owned, at Fair Value:

Financial  instruments  owned,  at  fair  value  primarily  consist  of  unencumbered  U.S.  Treasury  bills  held  for  liquidity 
purposes as well as equity securities with readily determinable fair value, foreign government bonds, and corporate bonds. Debt 
securities presented within Financial instruments owned, at fair value are classified as trading and marked-to-market daily based 
on current listed market prices (or, when applicable, broker or dealer quotes), with the resulting gains and losses included in 
operating  income  in  the  current  period.  Unrealized  and  realized  gains  and  losses  from  changes  in  fair  value  of  these  debt 
securities  are  included  as  part  of  “Principal  transactions”  in  the  Company’s  Consolidated  Statements  of  Operations.  In 
accordance with the guidance on recognition and measurement of equity investments with readily determinable fair value, the 
Company carries these equity securities at fair value and recognizes any changes in fair value currently within “Other income 
(loss)” in the Company’s Consolidated Statements of Operations. See Note 8—“Financial Instruments Owned, at Fair Value” 
for additional information.

Fair Value:

U.S.  GAAP  defines  fair  value  as  the  price  received  to  sell  an  asset  or  paid  to  transfer  a  liability  in  an  orderly 
transaction  between  market  participants  at  the  measurement  date  and  further  expands  disclosures  about  such  fair  value 
measurements.

The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair 
value.  The  hierarchy  gives  the  highest  priority  to  unadjusted  quoted  prices  in  active  markets  for  identical  assets  or  liabilities 
(Level  1  measurements)  and  the  lowest  priority  to  unobservable  inputs  (Level  3  measurements).  The  three  levels  of  the  fair 
value hierarchy are as follows:

Level 1 measurements – Unadjusted quoted prices in active markets that are accessible at the measurement date for 

identical, unrestricted assets or liabilities.

Level 2 measurements – Quoted prices in markets that are not active or financial instruments for which all significant 

inputs are observable, either directly or indirectly.

Level 3 measurements – Prices or valuations that require inputs that are both significant to the fair value measurement 

and unobservable.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant 

to the fair value measurement.

In determining fair value, the Company separates financial instruments owned and financial instruments sold, but not 

yet purchased into two categories: cash instruments and derivative contracts.

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Cash  Instruments  –  Cash  instruments  are  generally  classified  within  Level  1  or  Level  2.  The  types  of  instruments 
generally  classified  within  Level  1  include  most  U.S.  government  securities,  certain  sovereign  government  obligations,  and 
actively traded listed equities. The Company does not adjust the quoted price for such instruments. The types of instruments 
generally  classified  within  Level  2  include  agency  securities,  most  investment-grade  and  high-yield  corporate  bonds,  certain 
sovereign government obligations, money market securities, and less liquid listed equities, and state, municipal and provincial 
obligations.

Derivative Contracts – Derivative contracts can be exchange-traded or OTC. Exchange-traded derivatives typically fall 
within Level 1 or Level 2 of the fair value hierarchy depending on whether they are deemed to be actively traded or not. The 
Company  generally  values  exchange-traded  derivatives  using  the  closing  price  of  the  exchange-traded  derivatives.  OTC 
derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs 
to  models,  broker  or  dealer  quotations  or  alternative  pricing  sources  with  reasonable  levels  of  price  transparency.  For  OTC 
derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be verified and 
model selection does not involve significant management judgment. Such instruments are typically classified within Level 2 of 
the fair value hierarchy.

See  Note  12—“Fair  Value  of  Financial  Assets  and  Liabilities”  for  more  information  on  the  fair  value  of  financial 

assets and liabilities.

Receivables from and Payables to Broker-Dealers, Clearing Organizations, Customers and Related Broker-Dealers:

Receivables  from  and  payables  to  broker-dealers,  clearing  organizations,  customers  and  related  broker-dealers 
primarily  represent  principal  transactions  for  which  the  stated  settlement  dates  have  not  yet  been  reached  and  principal 
transactions  which  have  not  settled  as  of  their  stated  settlement  dates,  cash  held  at  clearing  organizations  and  exchanges  to 
facilitate settlement and clearance of matched principal transactions, and spreads on matched principal transactions that have 
not  yet  been  remitted  from/to  clearing  organizations  and  exchanges.  Also  included  are  amounts  related  to  open  derivative 
contracts, which are generally executed on behalf of the Company’s customers. A portion of the unsettled principal transactions 
and open derivative contracts that constitute receivables from and payables to broker-dealers, clearing organizations, customers 
and related broker-dealers are with related parties (see Note 13—“Related Party Transactions” for more information regarding 
these receivables and payables).

Current Expected Credit Losses (CECL)

In  accordance  with  the  U.S.  GAAP  guidance,  Financial  Instruments—Credit  Losses,  the  Company  presents  its 
financial assets that are measured at amortized cost, net of an allowance for credit losses, which represents the amount expected 
to be collected over their estimated life. Expected credit losses for newly recognized financial assets carried at amortized cost, 
as well as changes to expected lifetime credit losses during the period, are recognized in earnings. The CECL methodology’s 
impact  on  expected  credit  losses,  among  other  things,  reflects  the  Company’s  view  of  the  current  state  of  the  economy, 
forecasted  macroeconomic  conditions  and  the  Company’s  portfolios.  Refer  to  Note  25—“Current  Expected  Credit  Losses 
(CECL)” for additional information.

Accrued Commissions and Other Receivables, Net:

The  Company  has  accrued  commissions  receivable  from  securities  and  commodities  transactions.  Accrued 
commissions receivable are presented net of allowance for doubtful accounts of approximately $16.3 million and $9.9 million 
as of December 31, 2022 and 2021, respectively. The allowance is based on management’s estimate and reviewed periodically 
based on the facts and circumstances of each outstanding receivable.

The  Company’s  CECL  methodology  for  Accrued  commissions  receivable  follows  a  PD/LGD  framework  with 
adjustments for the macroeconomic outlook, with the calculation performed at a counterparty level. The receivable balance for 
each counterparty is the outstanding receivable amount adjusted for any volume discounts. Accrued commissions receivable are 
not subject to an interest income accrual. The Company writes off a receivable in the period in which such balance is deemed 
uncollectible.

The  PD  rate  is  sourced  from  Moody’s  Annual  Default  Study  for  Corporates  and  it  corresponds  to  the  1983-2022 
average 1-year default rate by rating. The Moody’s quarterly updated data is used as well, if deemed appropriate. A significant 
number of the Company’s counterparties are publicly rated, and, therefore, the Moody’s PD rate is used as a proxy based on the 
counterparty’s  external  rating.  In  addition,  the  Company  maintains  internal  obligor  ratings  that  map  to  Moody’s  long-term 
ratings.

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The LGD rate is derived from the Basel Committee’s June 2004 Second Basel Accord on international banking laws 
and  regulations.  The  Company  understands  that  the  LGD  assumption  is  a  well-known  industry  benchmark  for  unsecured 
credits, which aligns with the unsecured nature of these receivables. Management considered that historically the Company has 
collected  on  substantially  all  its  receivables,  and,  therefore,  the  LGD  assumption  is  a  reasonable  benchmark  in  absence  of 
internal data from which to develop an LGD measure.

The macroeconomic adjustment is based on an average of the outlook scenarios for changes in the Real GDP growth 
rate for advanced economies over the next year. Historical and forecast data for this metric is obtained from the International 
Monetary  Fund’s  World  Economic  Outlook  database.  The  Company  believes  that  changes  in  expected  credit  losses  for  its 
counterparties are impacted by changes in broad economic activity and, therefore, determined that the Real GDP growth rate 
was a reasonable metric to evaluate for macroeconomic adjustments. Further, given that the Company’s receivables are related 
to counterparties with global operations, management sourced the data for this metric as applicable to advanced economies. The 
Company  notes  that,  given  the  short-term  nature  of  these  receivables,  a  forecast  beyond  1  year  is  neither  required  nor 
appropriate, and, therefore, the adjustment also covers the approximated life of these assets with no need for reversion.

In  the  Company’s  capacity  as  an  insurance  agent  and  broker,  BGC  collected  premiums  from  insureds  and,  after 
deducting its commission, remitted the premiums to the respective insurers. BGC also collected claims or refunds from insurers 
on behalf of insureds. Uncollected premiums from insureds and uncollected claims or refunds from insurers were recorded as 
“Accrued commissions and other receivables, net”, and the corresponding unremitted insurance premiums and claims held in a 
fiduciary capacity were recorded as “Accounts payable, accrued and other liabilities” in the Company’s consolidated statements 
of financial condition. The Company sold its Insurance brokerage business on November 1, 2021 (see Note 5—"Divestitures" 
for additional information).

Loans, Forgivable Loans, and Other Receivables from Employees and Partners, Net:

The  Company  has  entered  into  various  agreements  with  certain  employees  and  partners  whereby  these  individuals 
receive loans which may be either wholly or in part repaid from the distributions that the individuals receive on some or all of 
their LPUs and from proceeds of the sale of the employees' shares of BGC Class A common stock, or may be forgiven over a 
period of time. The forgivable portion of these loans is not included in the Company’s estimate of expected credit losses when 
employees  meet  the  conditions  for  forgiveness  through  their  continued  employment  over  the  specified  time  period,  and  is 
recognized as compensation expense over the life of the loan. The amounts due from terminated employees that the Company 
does not expect to collect are included in the allowance for credit losses.

From  time  to  time,  the  Company  may  also  enter  into  agreements  with  employees  and  partners  to  grant  bonus  and 
salary advances or other types of loans. These advances and loans are repayable in the timeframes outlined in the underlying 
agreements. The Company reviews loan balances each reporting period for collectability. If the Company determines that the 
collectability of a portion of the loan balances is not expected, the Company recognizes a reserve against the loan balances as 
compensation expense.

Fixed Assets, Net:

Fixed  assets  are  carried  at  cost  net  of  accumulated  depreciation  and  amortization.  Depreciation  is  calculated  on  a 
straight-line basis over the estimated useful lives of the assets. Internal and external direct costs of developing applications and 
obtaining software for internal use are capitalized and amortized over three years on a straight-line basis. Computer equipment 
is depreciated over three to five years. Leasehold improvements are depreciated over the shorter of their estimated economic 
useful  lives  or  the  remaining  lease  term.  Routine  repairs  and  maintenance  are  expensed  as  incurred.  When  fixed  assets  are 
retired  or  otherwise  disposed  of,  the  related  gain  or  loss  is  included  in  operating  income.  The  Company  has  asset  retirement 
obligations  related  to  certain  of  its  leasehold  improvements,  which  it  accounts  for  in  accordance  with  U.S.  GAAP  guidance, 
Asset  Retirement  Obligations.  The  guidance  requires  that  the  fair  value  of  a  liability  for  an  asset  retirement  obligation  be 
recognized  in  the  period  in  which  it  is  incurred  if  a  reasonable  estimate  of  fair  value  can  be  made.  The  associated  asset 
retirement  cost  is  capitalized  as  part  of  the  carrying  amount  of  the  long-lived  asset.  The  liability  is  discounted  and  accretion 
expense is recognized using the credit-adjusted risk-free interest rate in effect when the liability was initially recognized.

Investments:

The Company’s investments in which it has a significant influence but not a controlling financial interest and of which 

it is not the primary beneficiary are accounted for under the equity method.

In accordance with the guidance on recognition and measurement of equity investments, the Company has elected to 
use  a  measurement  alternative  for  its  equity  investments  without  a  readily  determinable  fair  value,  pursuant  to  which  these 
investments are initially recognized at cost and remeasured through earnings when there is an observable transaction involving 

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the same or similar investment of the same issuer, or due to an impairment. The Company evaluates potential impairment of 
equity method investments when a change in circumstances occurs, by applying the U.S. GAAP guidance, under investments - 
Equity Method and Joint Ventures, and assessing whether the carrying amount can be recovered. See Note 12—“Fair Value of 
Financial Assets and Liabilities” and Note 14—“Investments” for additional information.

The  Company’s  consolidated  financial  statements  include  the  accounts  of  the  Company  and  its  wholly  owned  and 
majority-owned subsidiaries. The Company’s policy is to consolidate all entities of which it owns more than 50% unless it does 
not have control over the entity. In accordance with the U.S. GAAP guidance, Consolidation of Variable Interest Entities, the 
Company also consolidates any VIE of which it is the primary beneficiary.

Long-Lived Assets:

The  Company  periodically  evaluates  potential  impairment  of  long-lived  assets  and  amortizable  intangibles,  when  a 
change  in  circumstances  occurs,  by  applying  the  U.S.  GAAP  guidance,  Impairment  or  Disposal  of  Long-Lived  Assets,  and 
assessing  whether  the  unamortized  carrying  amount  can  be  recovered  over  the  remaining  life  through  undiscounted  future 
expected cash flows generated by the underlying assets. If the undiscounted future cash flows were less than the carrying value 
of the asset, an impairment charge would be recorded. The impairment charge would be measured as the excess of the carrying 
value of the asset over the present value of estimated expected future cash flows using a discount rate commensurate with the 
risks involved.

Leases:

The  Company  enters  into  leasing  arrangements  in  the  ordinary  course  of  business  as  a  lessee  of  office  space,  data 

centers and office equipment.

BGC determines whether an arrangement is a lease at inception. ROU lease assets represent the Company’s right to 
use an underlying asset for the lease term, and lease liabilities represent BGC’s obligation to make lease payments arising from 
the lease. Other than for leases with an initial term of twelve months or less, ROU lease assets and liabilities are recognized at 
commencement  date  based  on  the  present  value  of  lease  payments  over  the  lease  term.  As  most  leases  do  not  provide  an 
implicit  rate,  the  Company  uses  an  incremental  borrowing  rate  based  on  the  information  available  at  commencement  date  in 
determining  the  present  value  of  lease  payments.  The  ROU  lease  asset  also  includes  any  lease  payments  made  and  excludes 
lease  incentives.  Lease  terms  may  include  options  to  extend  or  terminate  the  lease  when  it  is  reasonably  certain  that  the 
Company will exercise those options. Lease expense pertaining to leases is recognized on a straight-line basis over the lease 
term. Interest expense on finance leases is recognized using the effective interest method over the lease term. Refer to Note 24
—“Leases” for additional information.

Goodwill and Other Intangible Assets, Net:

Goodwill  is  the  excess  of  the  purchase  price  over  the  fair  value  of  identifiable  net  assets  acquired  in  a  business 
combination. As prescribed in the U.S. GAAP guidance, Intangibles—Goodwill and Other, goodwill and other indefinite-lived 
intangible  assets  are  not  amortized,  but  instead  are  periodically  tested  for  impairment.  The  Company  reviews  goodwill  and 
other  indefinite-lived  intangible  assets  for  impairment  on  an  annual  basis  during  the  fourth  quarter  of  each  fiscal  year  or 
whenever  an  event  occurs  or  circumstances  change  that  could  reduce  the  fair  value  of  a  reporting  unit  below  its  carrying 
amount. When reviewing goodwill for impairment, BGC first assesses qualitative factors to determine whether it is more likely 
than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. 

Intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives. Definite-
lived intangible assets arising from business combinations include customer relationships, internally developed software, and 
covenants  not  to  compete.  Also  included  in  the  definite-lived  intangible  assets  are  purchased  patents.  The  costs  of  acquired 
patents are amortized over a period not to exceed the legal life or the remaining useful life of the patent, whichever is shorter, 
using the straight-line method.

Income Taxes:

The  Company  accounts  for  income  taxes  using  the  asset  and  liability  method  as  prescribed  in  the  U.S.  GAAP 
guidance,  Income  Taxes.  Deferred  tax  assets  and  liabilities  are  recognized  for  the  future  tax  consequences  attributable  to 
differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective 
tax  basis.  Certain  of  the  Company’s  entities  are  taxed  as  U.S.  partnerships  and  are  subject  to  the  UBT  in  New  York  City. 
Therefore, the tax liability or benefit related to the partnership income or loss except for UBT rests with the partners (see Note 2
—“Limited  Partnership  Interests  in  BGC  Holdings  and  Newmark  Holdings”  for  a  discussion  of  partnership  interests),  rather 

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than the partnership entity. As such, the partners’ tax liability or benefit is not reflected in the Company’s consolidated financial 
statements. The tax-related assets, liabilities, provisions or benefits included in the Company’s consolidated financial statements 
also reflect the results of the entities that are taxed as corporations, either in the U.S. or in foreign jurisdictions. The Company 
provides for uncertain tax positions based upon management’s assessment of whether a tax benefit is more likely than not to be 
sustained upon examination by tax authorities. The Company recognizes interest and penalties related to income tax matters in 
“Provision (benefit) for income taxes” in the Company’s consolidated statements of operations.

The  Company  files  income  tax  returns  in  the  United  States  federal  jurisdiction  and  various  states,  local  and  foreign 
jurisdictions.  The  Company  is  currently  open  to  examination  by  tax  authorities  in  United  States  federal,  state  and  local 
jurisdictions and certain non-U.S. jurisdictions for tax years beginning 2017, 2009 and 2016, respectively.

The  Company  has  finalized  its  accounting  policy  with  respect  to  taxes  on  Global  Intangible  Low-Taxed  Income 
(GILTI)  and  has  elected  to  treat  taxes  associated  with  the  GILTI  provision  using  the  Period  Cost  Method  and  thus  has  not 
recorded deferred taxes for basis differences under this regime.

Equity-Based Compensation:

The Company accounts for equity-based compensation awards using the guidance in ASC 718, Compensation - Stock 
Compensation. Equity-based compensation expense recognized during the period, for equity-based awards with a stated vesting 
schedule, is based on the value of the portion of equity-based payment awards that is ultimately expected to vest. The grant-date 
fair value of equity-based awards with a stated vesting schedule is amortized to expense ratably over the awards’ vesting 
periods. As this equity-based compensation expense recognized in the Company’s consolidated statements of operations is 
based on awards ultimately expected to vest, it has been reviewed for estimated forfeitures. Further, forfeitures are estimated at 
the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. In addition, 
equity-based compensation for LPU awards with no stated vesting schedule, is recognized at fair value on the date the award is 
granted exchangeability or is redeemed in connection with the issuance of shares of common stock.

Restricted Stock Units: 

RSUs  held  by  certain  employees  of  the  Company  are  accounted  for  as  equity  awards,  and  in  accordance  with  U.S. 
GAAP, the Company is required to record an expense for the portion of the RSUs that is ultimately expected to vest. The grant-
date fair value of RSUs is amortized to expense ratably over the awards’ expected vesting periods. The non-cash equity-based 
amortization  expense  is  reflected  as  a  component  of  “Equity-based  compensation  and  allocations  of  net  income  to  limited 
partnership units and FPUs” in the Company’s consolidated statements of operations.

Restricted Stock: 

Restricted stock provided to certain employees by the Company is accounted for as an equity award, and as per the 
U.S. GAAP guidance, the Company is required to record an expense for the portion of the restricted stock that is ultimately 
expected  to  vest.  The  Company  has  granted  restricted  stock  that  is  fully  vested  and  not  subject  to  continued  employment  or 
service with the Company or any affiliate or subsidiary of the Company; however, transferability is subject to compliance with 
BGC  Partners’  and  its  affiliates’  customary  noncompete  obligations.  Such  shares  of  restricted  stock  are  generally  salable  by 
partners in five to ten years. Because the restricted stock is not subject to continued employment or service, the grant-date fair 
value of the restricted stock is expensed on the date of grant. The non-cash equity-based expense is reflected as a component of 
“Equity-based  compensation  and  allocations  of  net  income  to  limited  partnership  units  and  FPUs”  in  the  Company’s 
consolidated statements of operations.

Limited Partnership Units: 

LPUs  in  BGC  Holdings  and  Newmark  Holdings  generally  are  held  by  employees  of  both  BGC  and  Newmark  and 
receive  quarterly  allocations  of  net  income,  which  are  cash  distributed  on  a  quarterly  basis  and  generally  contingent  upon 
services being provided by the unit holders. Following the Spin-Off, the quarterly allocations of net income on BGC Holdings 
and Newmark Holdings LPUs held by BGC employees are reflected as a component of compensation expense under “Equity-
based compensation and allocations of net income to limited partnership units and FPUs,” and the quarterly allocations of net 
income on BGC Holdings LPUs held by Newmark employees are reflected as a component of “Net income (loss) attributable to 
noncontrolling interest in subsidiaries” in the Company’s consolidated statements of operations.

Certain of these LPUs in BGC Holdings and Newmark Holdings, such as REUs, entitle the holders to receive post-
termination  payments  equal  to  the  notional  amount  in  four  equal  yearly  installments  after  the  holder’s  termination.  These 
limited partnership units held by BGC employees are accounted for as post-termination liability awards under the U.S. GAAP 
guidance, which requires that the Company record an expense for such awards based on the change in value at each reporting 

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period and include the expense in the Company’s consolidated statements of operations as part of “Equity-based compensation 
and allocations of net income to limited partnership units and FPUs.” The liability for these limited partnership units held by 
BGC employees with a post-termination payout amount is included in “Accrued compensation” on the Company’s consolidated 
statements of financial condition.

Following the Spin-Off, certain limited partnership units in BGC Holdings are granted exchangeability or redeemed in 
connection with the grant of shares of BGC Class A common stock on a one-for-one basis (subject to adjustment), and certain 
limited partnership units in Newmark Holdings are granted exchangeability or redeemed in connection with the grant of shares 
of  Newmark  Class  A  common  stock  based  on  the  exchange  ratio  at  the  time.  At  the  time  exchangeability  or  redemption  is 
granted for BGC employees, the Company recognizes an expense based on the fair value of the award on that date, which is 
included in “Equity-based compensation and allocations of net income to limited partnership units and FPUs” in the Company’s 
consolidated statements of operations.

Further,  certain  LPUs  in  BGC  Holdings  and  Newmark  Holdings  have  a  stated  vesting  schedule  and  do  not  receive 
quarterly allocations of net income. The grant-date fair value of these LPUs is amortized to expense ratably over the awards’ 
expected  vesting  periods.  The  non-cash  equity-based  amortization  expense  is  reflected  as  a  component  of  “Equity-based 
compensation and allocations of net income to limited partnership units and FPUs” in the Company’s consolidated statements 
of operations. 

In  addition,  Preferred  Units  are  granted  in  connection  with  the  grant  of  certain  LPUs,  such  as  PSUs,  which  may  be 
granted exchangeability or redeemed in connection with the grant of shares of common stock to cover the withholding taxes 
owed by the unit holder, rather than issuing the gross amount of shares to employees, subject to cashless withholding of shares 
to  pay  applicable  withholding  taxes.  Each  quarter,  the  net  profits  of  BGC  Holdings  and  Newmark  Holdings  are  allocated  to 
Preferred Units at a rate of either 0.6875% (which is 2.75% per calendar year) or such other amount as set forth in the award 
documentation  (the  “Preferred  Distribution”).  These  allocations  are  deducted  before  the  calculation  and  distribution  of  the 
quarterly  partnership  distribution  for  the  remaining  partnership  interests  and  are  generally  contingent  upon  services  being 
provided  by  the  unit  holder.  The  Preferred  Units  are  not  entitled  to  participate  in  partnership  distributions  other  than  with 
respect to the Preferred Distribution. Preferred Units may not be made exchangeable into common stock and are only entitled to 
the Preferred Distribution, and accordingly they are not included in the fully diluted share count. The quarterly allocations of 
net  income  on  Preferred  Units  are  reflected  the  same  as  those  of  the  LPUs  described  above  in  the  Company’s  consolidated 
statements  of  operations.  After  deduction  of  the  Preferred  Distribution,  the  remaining  partnership  interests  generally  receive 
quarterly  allocations  of  net  income  based  on  their  weighted-average  pro-rata  share  of  economic  ownership  of  the  operating 
subsidiaries.

For additional information, see Note 2—“Limited Partnership Interests in BGC Holdings and Newmark Holdings.”

Redeemable Partnership Interest:

Redeemable partnership interest represents limited partnership interests in BGC Holdings held by Founding/Working 
Partners.  See  Note  2—“Limited  Partnership  Interests  in  BGC  Holdings  and  Newmark  Holdings”  for  additional  information 
related to the FPUs.

Contingent Class A Common Stock:

In connection with certain acquisitions, the Company committed to issue shares of the Company’s Class A common 
stock upon the achievement of certain performance targets. The contingent shares met the criteria for liability classification, are 
measured at fair value on a recurring basis and presented in “Accounts payable, accrued and other liabilities” in the Company’s 
consolidated statements of financial condition. Realized and unrealized gains (losses) resulting from changes in fair value are 
reported in “Other income (loss)” in the Company’s consolidated statements of operations.

Noncontrolling Interest in Subsidiaries:

Noncontrolling interest in subsidiaries represents equity interests in consolidated subsidiaries that are not attributable 
to the Company, such as Cantor units and the noncontrolling interest holders’ proportionate share of the profit or loss associated 
with joint ownership of the Company’s administrative services company in the U.K. (Tower Bridge).

Foreign Currency Transactions and Translation:

Assets and liabilities denominated in nonfunctional currencies are converted at rates of exchange prevailing on the date 
of the Company’s consolidated statements of financial condition, and revenues and expenses are converted at average rates of 
exchange  for  the  period.  Gains  and  losses  on  remeasurement  of  foreign  currency  transactions  denominated  in  nonfunctional 

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currencies are recognized within “Other expenses” in the Company’s consolidated statements of operations. Gains and losses 
on  translation  of  the  financial  statements  of  non-U.S.  operations  into  U.S.  dollar  reporting  currency  of  the  Company  are 
presented as foreign currency translation adjustments within “Other comprehensive income (loss), net of tax” in the Company’s 
consolidated  statements  of  comprehensive  income  and  as  part  of  “Accumulated  other  comprehensive  income  (loss)”  in  the 
Company’s consolidated statements of financial condition.

Derivative Financial Instruments:

Derivative  contracts are instruments,  such as futures, forwards,  options  or  swaps  contracts,  which derive their value 
from  underlying  assets,  indices,  reference  rates  or  a  combination  of  these  factors.  Derivative  instruments  may  be  listed  and 
traded  on  an  exchange,  or  they  may  be  privately  negotiated  contracts,  which  are  often  referred  to  as  OTC  derivatives. 
Derivatives may involve future commitments to purchase or sell financial instruments or commodities, or to exchange currency 
or interest payment streams. The amounts exchanged are based on the specific terms of the contract with reference to specified 
rates, securities, commodities, currencies or indices.

The Company does not designate any derivative contracts as hedges for accounting purposes. U.S. GAAP requires that 
an entity recognize all derivative contracts as either assets or liabilities in the consolidated statements of financial condition and 
measure  those  instruments  at  fair  value.  The  fair  value  of  all  derivative  contracts  is  recorded  on  a  net-by-counterparty  basis 
where  a  legal  right  of  offset  exists  under  an  enforceable  netting  agreement.  Derivative  contracts  are  recorded  as  part  of 
receivables from or payables to broker-dealers, clearing organizations, customers and related broker-dealers in the Company’s 
consolidated statements of financial condition.

4.

Acquisitions

There were no acquisitions completed by the Company for the year ended December 31, 2022.

Futures Exchange Group

On  July  30,  2021,  the  Company  completed  the  purchase  of  the  Futures  Exchange  Group  for  a  purchase  price  of 
$4.9 million at closing, plus the cash held at closing by the Futures Exchange Group, and an earn-out, only payable out of the 
Company's  portion  of  the  profits  of  the  Futures  Exchange  Group,  capped  at  the  amount  Cantor  contributed  to  the  Futures 
Exchange Group prior to closing. For additional information, see Note 1—“Organization and Basis of Presentation.” 

Total Consideration

The total consideration for all acquisitions during the year ended December 31, 2021 was approximately $4.9 million 
in  cash,  plus  the  cash  held  at  closing,  for  the  Futures  Exchange  Group  acquisition,  and  an  earn-out  payable  out  of  the 
Company's  portion  of  the  profits  of  the  Futures  Exchange  Group,  capped  at  the  amount  Cantor  contributed  to  the  Futures 
Exchange Group prior to closing. There was no other consideration paid during the year ended December 31, 2021. 

Except  where  otherwise  noted,  the  results  of  operations  of  the  Company’s  acquisitions  have  been  included  in  the 
Company’s  consolidated  financial  statements  subsequent  to  their  respective  dates  of  acquisition.  The  Company  has  made 
preliminary allocations of the consideration to the assets acquired and liabilities assumed as of the acquisition dates, and expects 
to  finalize  its  analysis  with  respect  to  acquisitions  within  the  first  year  after  the  completion  of  the  respective  transaction. 
Therefore, adjustments to preliminary allocations may occur.

5.

Divestitures

On  November  1,  2021,  the  Company  successfully  completed  the  Insurance  Business  Disposition  and,  after  closing
adjustments, received $534.9 million in gross cash proceeds, subject to limited post-closing adjustments. As a result of this sale, 
the Company recognized a $312.9 million gain, net of banking fees, other professional fees, and compensation expenses, which 
was  included  in  “Gains  (losses)  on  divestitures  and  sale  of  investments”  in  the  Company's  Consolidated  Statements  of 
Operations  for  the  year  ended  December  31,  2021.  CF&Co  served  as  advisor  to  the  Company  in  connection  with  the 
transaction, and as a result, the banking fees included $4.4 million paid to Cantor upon closing of the transaction.

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Class B Common Stock 

The Company did not issue any shares of BGC Class B common stock during the years ended December 31, 2022 and 

2021. As of December 31, 2022 and 2021, there were 45.9 million shares of BGC Class B common stock outstanding.

CEO Program

On March 9, 2018, the Company filed the March 2018 Form S-3 and entered into the March 2018 Sales Agreement, 
pursuant to which the Company could offer and sell up to an aggregate of $300.0 million of shares of BGC Class A common 
stock  under  the  CEO  Program.  CF&Co  is  a  wholly-owned  subsidiary  of  Cantor  and  an  affiliate  of  the  Company.  Under  the 
March  2018  Sales  Agreement,  the  Company  agreed  to  pay  CF&Co  2%  of  the  gross  proceeds  from  the  sale  of  shares.  The 
Company did not sell any shares under the March 2018 Sales Agreement during the year ended December 31, 2021. The March 
2018 Form S-3 and the March 2018 Sales Agreement expired in September 2021. As of the date of expiration, the Company 
had sold 17.6 million shares of BGC Class A common stock (or $210.8 million) under the March 2018 Sales Agreement. For 
additional  information  on  the  Company’s  CEO  Program  sales  agreements,  see  Note  13—“Related  Party  Transactions.”  On 
March 8, 2021, the Company filed a new CEO Program shelf registration statement on Form S-3 with respect to the issuance 
and sale of up to an aggregate of $300.0 million of shares of BGC Class A common stock from time to time on a delayed or 
continuous basis (the "March 2021 Form S-3"). On July 8, 2022, the Company filed an amendment to the March 2021 Form 
S-3.  On  August  3,  2022,  the  March  2021  Form  S-3  was  declared  effective  by  the  SEC,  and  the  Company  entered  into  the
August 2022 Sales Agreement on August 12, 2022.

Unit Redemptions and Share Repurchase Program 

The  Company’s  Board  and  Audit  Committee  have  authorized  repurchases  of  BGC  Class  A  common  stock  and 
redemptions  of  limited  partnership  interests  or  other  equity  interests  in  the  Company’s  subsidiaries.  On  August  3,  2021,  the 
Company’s  Board  and  Audit  Committee  increased  the  BGC  Partners  share  repurchase  and  unit  redemption  authorization  to 
$400.0  million,  which  may  include  purchases  from  Cantor,  its  partners  or  employees  or  other  affiliated  persons  or  entities. 
Again,  on  November  4,  2022,  the  Board  and  Audit  Committee  increased  the  BGC  Partners  share  repurchase  and  unit 
redemption  authorization  to  $400.0  million,  which  may  include  purchases  from  Cantor,  its  partners  or  employees  or  other 
affiliated persons or entities. As of December 31, 2022, the Company had $376.4 million remaining from its share repurchase 
and unit redemption authorization. From time to time, the Company may actively continue to repurchase shares and/or redeem 
units.

The tables below represent the units redeemed and/or shares repurchased for cash and does not include units redeemed/
cancelled in connection with the grant of shares of BGC Class A common stock nor the limited partnership interests exchanged 
for shares of BGC Class A common stock. The gross unit redemptions and share repurchases of BGC Class A common stock 
during the year ended December 31, 2022 were as follows (in thousands, except for weighted-average price data):

160

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(cid:22)(cid:18)(cid:11)(cid:24)(cid:19)(cid:19)(cid:1) (cid:3)(cid:1)

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(cid:7)(cid:22)(cid:16)(cid:11)(cid:15)(cid:24)(cid:20)(cid:8)(cid:1) (cid:3)(cid:1)

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(cid:99)(cid:1)
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(cid:16)(cid:11)(cid:19)(cid:24)(cid:15)(cid:1)
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(cid:16)(cid:21)(cid:23)

For  the  years  ended  December  31,  2022,  2021  and  2020,  the  Company  recognized  related  party  revenues  of  $14.7 
million, $14.9 million and $25.8 million, respectively, for the services provided to Cantor. These revenues are included as part 
of “Fees from related parties” in the Company’s Consolidated Statements of Operations.

In  the  U.S.,  Cantor  and  its  affiliates  provide  the  Company  with  administrative  services  and  other  support  for  which 
Cantor charges the Company based on the cost of providing such services. In connection with the services Cantor provides, the 
Company  and  Cantor  entered  into  an  administrative  services  agreement  whereby  certain  employees  of  Cantor  are  deemed 
leased employees of the Company. For the years ended December 31, 2022, 2021 and 2020, the Company was charged $84.9 
million,  $81.9  million  and  $62.6  million,  respectively,  for  the  services  provided  by  Cantor  and  its  affiliates,  of  which  $59.2 
million,  $57.9  million  and  $39.4  million,  respectively,  were  to  cover  compensation  to  leased  employees  for  the  years  ended 
December 31, 2022, 2021 and 2020. The fees charged by Cantor for administrative and support services, other than those to 
cover  the  compensation  costs  of  leased  employees,  are  included  as  part  of  “Fees  to  related  parties”  in  the  Company’s 
Consolidated Statements of Operations. The fees charged by Cantor to cover the compensation costs of leased employees are 
included as part of “Compensation and employee benefits” in the Company’s Consolidated Statements of Operations.

Purchase of Futures Exchange Group

On  July  30,  2021,  the  Company  completed  the  purchase  of  the  Futures  Exchange  Group  for  a  purchase  price  of 
$4.9 million at closing, plus the cash held at closing by the Futures Exchange Group, and an earn-out, only payable out of the 
Company's  portion  of  the  profits  of  the  Futures  Exchange  Group,  capped  at  the  amount  Cantor  contributed  to  the  Futures 
Exchange  Group  prior  to  closing.  The  transaction  has  been  accounted  for  as  a  transaction  between  entities  under  common 
control.

As  part  of  the  purchase  of  the  Futures  Exchange  Group,  Cantor  has  agreed  to  indemnify  the  Company  for  certain 
expenses arising at the Futures Exchange Group up to a maximum of $1.0 million. As of December 31, 2022 and 2021, the 
Company  had  recorded  assets  of  $1.0  million  and  $0.4  million,  respectively,  in  the  Company’s  Consolidated  Statements  of 
Financial Condition for this indemnity.

In addition, the Futures Exchange Group received capital contributions from Cantor of $5.3 million and $4.6 million, 
for  the  years  ended  December  31,  2021  and  2020,  respectively.  These  capital  contributions  were  made  prior  to  BGC's 
acquisition of the Futures Exchange Group. There were no capital contributions received from Cantor by the Futures Exchange 
Group for the year ended December 31, 2022.

Newmark Spin-Off

The  Separation  and  Distribution  Agreement  sets  forth  the  agreements  among  BGC,  Cantor,  Newmark  and  their 

respective subsidiaries. 

As a result of the Separation, the limited partnership interests in Newmark Holdings were distributed to the holders of 
limited  partnership  interests  in  BGC  Holdings,  including  Cantor,  whereby  each  holder  of  BGC  Holdings  limited  partnership 
interests  at  that  time  held  a  BGC  Holdings  limited  partnership  interest  and  a  corresponding  Newmark  Holdings  limited 
partnership interest, which is equal to a BGC Holdings limited partnership interest multiplied by the Contribution Ratio, divided 
by the Exchange Ratio. For additional information, see Note 2—“Limited Partnership Interests in BGC Holdings and Newmark 
Holdings.”

Subsequent to the Spin-Off, there are remaining partners who hold limited partnership interests in BGC Holdings who 
are Newmark employees, and there are remaining partners who hold limited partnership interests in Newmark Holdings who 
are BGC employees. These limited partnership interests represent interests that were held prior to the Newmark IPO or were 
distributed  in  connection  with  the  Separation.  Following  the  Newmark  IPO,  employees  of  BGC  and  Newmark  only  receive 
limited partnership interests in BGC Holdings and Newmark Holdings, respectively. As a result of the Spin-Off, as the existing 
limited  partnership  interests  in  BGC  Holdings  held  by  Newmark  employees  and  the  existing  limited  partnership  interests  in 
Newmark  Holdings  held  by  BGC  employees  are  exchanged/redeemed,  the  related  capital  can  be  contributed  to  and  from 
Cantor, respectively.

On  November  30,  2018,  BGC  Partners  caused  its  subsidiary,  BGC  Holdings,  to  distribute  in  the  BGC  Holdings 
Distribution pro rata all of the 1.5 million exchangeable interests of Newmark Holdings held by BGC Holdings immediately 
prior to the effective time of the BGC Holdings Distribution Date to its limited partners entitled to receive distributions on their 
BGC Holdings units who were holders of record of such units as of the Record Date (including Cantor and executive officers of 
BGC).  The  Newmark  Holdings  interests  distributed  to  BGC  Holdings  partners  in  the  BGC  Holdings  Distribution  are 
exchangeable for shares of Newmark Class A common stock, and, in the case of the 0.4 million Newmark Holdings interests 
received  by  Cantor,  also  into  shares  of  Newmark  Class  B  common  stock,  at  the  current  Exchange  Ratio  of  0.9303  shares  of 
Newmark common stock per Newmark Holdings interest (subject to adjustment). 

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Clearing Agreement with Cantor

The  Company  receives  certain  clearing  services  from  Cantor  pursuant  to  its  clearing  agreement.  These  clearing 
services  are  provided  in  exchange  for  payment  by  the  Company  of  third-party  clearing  costs  and  allocated  costs.  The  costs 
associated with these payments are included as part of “Fees to related parties” in the Company’s Consolidated Statements of 
Operations.  The  costs  for  these  services  are  included  as  part  of  the  charges  to  BGC  for  services  provided  by  Cantor  and  its 
affiliates as discussed in “Service Agreements” above.

Other Agreements with Cantor

The  Company  is  authorized  to  enter  into  short-term  arrangements  with  Cantor  to  cover  any  delivery  failures  in 
connection with U.S. Treasury securities transactions and to share equally in any net income resulting from such transactions, 
as well as any similar clearing and settlement issues. As of December 31, 2022, and December 31, 2021, the Company had not 
facilitated any Repurchase Agreements with Cantor.

To more effectively manage the Company’s exposure to changes in FX rates, the Company and Cantor have agreed to 
jointly  manage  the  exposure.  As  a  result,  the  Company  is  authorized  to  divide  the  quarterly  allocation  of  any  profit  or  loss 
relating to FX currency hedging between the Company and Cantor. The amount allocated to each party is based on the total net 
exposure for the Company and Cantor. The ratio of gross exposures of the Company and Cantor is utilized to determine the 
shares of profit or loss allocated to each for the period. During the year ended December 31, 2022, the Company recognized its 
share of FX losses of $0.1 million. During the years ended December 31, 2021 and 2020, the Company recognized its share of 
FX gains of $0.5 million and $1.5 million, respectively. These gains and losses are included as part of “Other expenses” in the 
Company’s Consolidated Statements of Operations.

Pursuant to the separation agreement relating to the Company’s acquisition of certain BGC businesses from Cantor in 
2008, Cantor has a right, subject to certain conditions, to be the Company’s customer and to pay the lowest commissions paid 
by  any  other  customer,  whether  by  volume,  dollar  or  other  applicable  measure.  In  addition,  Cantor  has  an  unlimited  right  to 
internally use market data from the Company without any cost. Any future related party transactions or arrangements between 
the Company and Cantor are subject to the prior approval by the Audit Committee. During the years ended December 31, 2022, 
2021  and  2020,  the  Company  recorded  revenues  from  Cantor  entities  of  $0.3  million,  $0.1  million  and  $0.1  million, 
respectively, related to commissions paid to the Company by Cantor. These revenues are included as part of “Commissions” in 
the Company’s Consolidated Statements of Operations.

The Company and Cantor are authorized to utilize each other’s brokers to provide brokerage services for securities not 
brokered by such entity, so long as, unless otherwise agreed, such brokerage services were provided in the ordinary course and 
on terms no less favorable to the receiving party than such services are provided to typical third-party customers.

In  August  2013,  the  Audit  Committee  authorized  the  Company  to  invest  up  to  $350.0  million  in  an  asset-backed 
commercial paper program for which certain Cantor entities serve as placement agent and referral agent. The program issues 
short-term  notes  to  money  market  investors  and  is  expected  to  be  used  by  the  Company  from  time  to  time  as  a  liquidity 
management vehicle. The notes are backed by assets of highly rated banks. The Company is entitled to invest in the program so 
long as the program meets investment policy guidelines, including policies related to ratings. Cantor will earn a spread between 
the rate it receives from the short-term note issuer and the rate it pays to the Company on any investments in this program. This 
spread will be no greater than the spread earned by Cantor for placement of any other commercial paper note in the program. As 
of December 31, 2022 and December 31, 2021, the Company did not have any investments in the program.

On June 5, 2015, the Company entered into the Exchange Agreement with Cantor providing Cantor, CFGM and other 
Cantor affiliates entitled to hold BGC Class B common stock the right to exchange from time to time, on a one-to-one basis, 
subject to adjustment, up to an aggregate of 34.6 million shares of BGC Class A common stock now owned or subsequently 
acquired by such Cantor entities for up to an aggregate of 34.6 million shares of BGC Class B common stock. Such shares of 
BGC Class B common stock, which currently can be acquired upon the exchange of Cantor units owned in BGC Holdings, are 
already included in the Company’s fully diluted share count and will not increase Cantor’s current maximum potential voting 
power in the common equity. The Exchange Agreement enabled the Cantor entities to acquire the same number of shares of 
BGC  Class  B  common  stock  that  they  were  already  entitled  to  acquire  without  having  to  exchange  its  Cantor  units  in  BGC 
Holdings. The Audit Committee and Board determined that it was in the best interests of the Company and its stockholders to 
approve the Exchange Agreement because it will help ensure that Cantor retains its units in BGC Holdings, which is the same 
partnership in which the Company’s partner employees participate, thus continuing to align the interests of Cantor with those of 
the partner employees.

On November 23, 2018, in the Class B Issuance, BGC Partners issued 10.3 million shares of BGC Partners Class B 
common stock to Cantor and 0.7 million shares of BGC Partners Class B common stock to CFGM, in each case in exchange for 
shares  of  BGC  Class  A  common  stock  owned  by  Cantor  and  CFGM,  respectively,  on  a  one-to-one  basis  pursuant  to  the 

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Exchange Agreement. Pursuant to the Exchange Agreement, no additional consideration was paid to BGC Partners by Cantor 
or  CFGM  for  the  Class  B  Issuance.  Following  this  exchange,  Cantor  and  its  affiliates  have  the  right  to  exchange  under  the 
Exchange Agreement up to an aggregate of 23.6 million shares of BGC Class A common stock, now owned or subsequently 
acquired, or its Cantor units in BGC Holdings, into shares of BGC Class B common stock. As of December 31, 2022, Cantor 
and CFGM did not own any shares of BGC Class A common stock.

The Company and Cantor have agreed that any shares of BGC Class B common stock issued in connection with the 
Exchange  Agreement  would  be  deducted  from  the  aggregate  number  of  shares  of  BGC  Class  B  common  stock  that  may  be 
issued  to  the  Cantor  entities  upon  exchange  of  Cantor  units  in  BGC  Holdings.  Accordingly,  the  Cantor  entities  will  not  be 
entitled to receive any more shares of BGC Class B common stock under this agreement than they were previously eligible to 
receive upon exchange of exchangeable limited partnership units.

On March 19, 2018, the Company entered into the BGC Credit Agreement with Cantor. The BGC Credit Agreement 
provides for each party and certain of its subsidiaries to issue loans to the other party or any of its subsidiaries in the lender’s 
discretion in an aggregate principal amount up to $250.0 million outstanding at any time. The BGC Credit Agreement replaced 
the  previous  Credit  Facility  between  BGC  and  an  affiliate  of  Cantor.  On  August  6,  2018,  the  Company  entered  into  an 
amendment to the BGC Credit Agreement, which increased the aggregate principal amount that could be loaned to the other 
party  or  any  of  its  subsidiaries  from  $250.0  million  to  $400.0  million  that  can  be  outstanding  at  any  time.  The  BGC  Credit 
Agreement  will  mature  on  the  earlier  to  occur  of  (a)  March  19,  2023,  after  which  the  maturity  date  of  the  BGC  Credit 
Agreement will continue to be extended for successive one-year periods unless prior written notice of non-extension is given by 
a lending party to a borrowing party at least six months in advance of such renewal date and (b) the termination of the BGC 
Credit Agreement by either party pursuant to its terms. The outstanding amounts under the BGC Credit Agreement will bear 
interest for any rate period at a per annum rate equal to the higher of BGC’s or Cantor’s short-term borrowing rate in effect at 
such time plus 1.00%. As of December 31, 2022 and 2021, there were no borrowings by BGC or Cantor outstanding under this 
Agreement. The Company did not record any interest expense related to the agreement for the years ended December 31, 2022 
and 2021. The Company recorded interest expense related to the Agreement of $0.4 million for the year ended December 31, 
2020. 

As  part  of  the  Company’s  cash  management  process,  the  Company  may  enter  into  tri-party  reverse  repurchase 
agreements  and  other  short-term  investments,  some  of  which  may  be  with  Cantor.  As  of  December  31,  2022  and  2021,  the 
Company had no reverse repurchase agreements outstanding.

Receivables from and Payables to Related Broker-Dealers

Amounts due to or from Cantor and Freedom, one of the Company’s equity method investments, are for transactional 
revenues under a technology and services agreement with Freedom, as well as for open derivative contracts. These are included 
as  part  of  “Receivables  from  broker-dealers,  clearing  organizations,  customers  and  related  broker-dealers”  or  “Payables  to 
broker-dealers,  clearing  organizations,  customers  and  related  broker-dealers”  in  the  Company’s  Consolidated  Statements  of 
Financial Condition. As of both December 31, 2022 and 2021, the Company had receivables from Freedom of $1.4 million. As 
of  December  31,  2022  and  2021,  the  Company  had  $3.1  million  and  $2.5  million,  respectively,  in  receivables  from  Cantor 
related  to  open  derivative  contracts.  As  of  December  31,  2022  and  2021,  the  Company  had  $5.8  million  and  $1.5  million, 
respectively, in payables to Cantor related to open derivative contracts. As of both December 31, 2022 and 2021, the Company 
did not have any receivables from and payables to Cantor related to fails and pending trades.

Loans, Forgivable Loans and Other Receivables from Employees and Partners, Net

The  Company  has  entered  into  various  agreements  with  certain  employees  and  partners  whereby  these  individuals 
receive loans which may be either wholly or in part repaid from the distributions that the individuals receive on some or all of 
their LPUs and from proceeds of the sale of the employees' shares of BGC Class A common stock or may be forgiven over a 
period of time. The forgivable portion of these loans is recognized as compensation expense over the life of the loan. From time 
to time, the Company may also enter into agreements with employees and partners to grant bonus and salary advances or other 
types of loans. These advances and loans are repayable in the timeframes outlined in the underlying agreements.

As  of  December  31,  2022  and  2021,  the  aggregate  balance  of  employee  loans,  net,  was  $319.6  million  and  $287.0 
million, respectively, and is included as “Loans, forgivable loans and other receivables from employees and partners, net” in the 
Company’s Consolidated Statements of Financial Condition. Compensation expense for the above-mentioned employee loans 
for the years ended December 31, 2022, 2021 and 2020 was $49.5 million, $217.7 million and $67.0 million, respectively. The 
compensation  expense  related  to  these  employee  loans  is  included  as  part  of  “Compensation  and  employee  benefits”  in  the 
Company’s Consolidated Statements of Operations.

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Interest income on the above-mentioned employee loans for the years ended December 31, 2022, 2021 and 2020 was 
$7.5 million, $10.0 million and $8.8 million, respectively. The interest income related to these employee loans is included as 
part of “Interest and dividend income” in the Company’s Consolidated Statements of Operations.

CEO Program and Other Transactions with CF&Co 

As discussed in Note 7—“Stock Transactions and Unit Redemptions,” the Company entered into both the March 2018 
Sales Agreement and the August 2022 Sales Agreement with CF&Co, as the Company’s sales agent under the CEO Program. 
During the years ended December 31, 2022 and 2021, the Company did not sell any shares of Class A common stock under the 
March 2018 Sales Agreement or the August 2022 Sales Agreement. The March 2018 Sales Agreement expired in September 
2021.  For  the  years  ended  December  31,  2022  and  2021,  the  Company  was  not  charged  for  services  provided  by  CF&Co 
related to the CEO program with CF&Co. For the year ended December 31, 2020, the Company was charged approximately $9 
thousand, for services provided by CF&Co related to the Company's Sales Agreements with CF&Co. The net proceeds of the 
shares  sold  are  included  as  part  of  “Additional  paid-in  capital”  in  the  Company’s  Consolidated  Statements  of  Financial 
Condition.

The Company has engaged CF&Co and its affiliates to act as financial advisors in connection with one or more third-
party business combination transactions as requested by the Company on behalf of its affiliates from time to time on specified 
terms,  conditions  and  fees.  The  Company  may  pay  finders’,  investment  banking  or  financial  advisory  fees  to  broker-dealers, 
including,  but  not  limited  to,  CF&Co  and  its  affiliates,  from  time  to  time  in  connection  with  certain  business  combination 
transactions, and, in some cases, the Company may issue shares of BGC Class A common stock in full or partial payment of 
such fees.

On October 3, 2014, management was granted approval by the Board and Audit Committee to enter into stock loan 
transactions  with  CF&Co  utilizing  equities  securities.  Such  stock  loan  transactions  will  bear  market  terms  and  rates.  As  of 
December  31,  2022  and  2021,  the  Company  did  not  have  any  Securities  loaned  transactions  with  CF&Co.  Securities  loaned 
transactions are included in “Securities loaned” in the Company’s Consolidated Statements of Financial Condition.

On May 27, 2016, the Company issued an aggregate of $300.0 million principal amount of 5.125% Senior Notes. In 
connection with this issuance of the 5.125% Senior Notes, the Company recorded $0.5 million in underwriting fees payable to 
CF&Co.  These  fees  were  recorded  as  a  deduction  from  the  carrying  amount  of  the  debt  liability,  which  was  amortized  as 
interest  expense  over  the  term  of  the  notes.  Cantor  tendered  $15.0  million  of  such  senior  notes  in  the  tender  offer  for  the 
5.125% Senior Notes completed on August 14, 2020. The 5.125% Senior Notes matured on May 27, 2021.

On July 24, 2018, the Company issued an aggregate of $450.0 million principal amount of 5.375% Senior Notes. The 
5.375% Senior Notes are general senior unsecured obligations of the Company. In connection with this issuance of the 5.375% 
Senior Notes, the Company recorded approximately $0.3 million in underwriting fees payable to CF&Co. The Company also 
paid CF&Co an advisory fee of $0.2 million in connection with the issuance. These fees were recorded as a deduction from the 
carrying amount of the debt liability, which is amortized as interest expense over the term of the notes.

On  September  27,  2019,  the  Company  issued  an  aggregate  of  $300.0  million  principal  amount  of  3.750%  Senior 
Notes. In connection with this issuance of the 3.750% Senior Notes, the Company recorded $0.2 million in underwriting fees 
payable to CF&Co. These fees were recorded as a deduction from the carrying amount of the debt liability, which is amortized 
as interest expense over the term of the notes.

On June 11, 2020, the Company’s Board of Directors and its Audit Committee authorized a debt repurchase program 
for  the  repurchase  by  the  Company  of  up  to  $50.0  million  of  Company  Debt  Securities.  Repurchases  of  Company  Debt 
Securities,  if  any,  are  expected  to  reduce  future  cash  interest  payments,  as  well  as  future  amounts  due  at  maturity  or  upon 
redemption. Under the authorization, the Company may make repurchases of Company Debt Securities for cash from time to 
time  in  the  open  market  or  in  privately  negotiated  transactions  upon  such  terms  and  at  such  prices  as  management  may 
determine.  Additionally,  the  Company  is  authorized  to  make  any  such  repurchases  of  Company  Debt  Securities  through 
CF&Co (or its affiliates), in its capacity as agent or principal, or such other broker-dealers as management shall determine to 
utilize from time to time, and such repurchases shall be subject to brokerage commissions which are no higher than standard 
market  commission  rates.  As  of  December  31,  2022,  the  Company  had  $50.0  million  remaining  under  its  debt  repurchase 
authorization.

On July 10, 2020, the Company issued an aggregate of $300.0 million principal amount of 4.375% Senior Notes. In 
connection with this issuance of the 4.375% Senior Notes, the Company recorded $0.2 million in underwriting fees payable to 
CF&Co. These fees were recorded as a deduction from the carrying amount of the debt liability, which is amortized as interest 
expense  over  the  term  of  the  notes.  Cantor  purchased  $14.5  million  of  such  senior  notes  and  still  held  such  notes  as  of 
December 31, 2022.

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Under  rules  adopted  by  the  CFTC,  all  foreign  introducing  brokers  engaging  in  transactions  with  U.S.  persons  are 
required  to  register  with  the  NFA  and  either  meet  financial  reporting  and  net  capital  requirements  on  an  individual  basis  or 
obtain  a  guarantee  agreement  from  a  registered  FCM.  From  time  to  time,  the  Company’s  foreign-based  brokers  engage  in 
interest  rate  swap  transactions  with  U.S.-based  counterparties,  and,  therefore,  the  Company  is  subject  to  the  CFTC 
requirements. Mint Brokers has entered into guarantees on behalf of the Company, and the Company is required to indemnify 
Mint Brokers for the amounts, if any, paid by Mint Brokers on behalf of the Company pursuant to this arrangement. Effective 
April 1, 2020, these guarantees were transferred to Mint Brokers from CF&Co. During the years ended December 31, 2022, 
2021  and  2020,  the  Company  recorded  fees  of  $0.1  million  with  respect  to  these  guarantees,  respectively.  These  fees  were 
included in “Fees to related parties” in the Company’s Consolidated Statements of Operations.

Cantor Rights to Purchase Cantor Units from BGC Holdings

Cantor  has  the  right  to  purchase  Cantor  units  from  BGC  Holdings  upon  redemption  of  non-exchangeable  FPUs 
redeemed by BGC Holdings upon termination or bankruptcy of the Founding/Working Partner. In addition, pursuant to Article 
Eight, Section 8.08, of the Second Amended and Restated BGC Holdings Limited Partnership Agreement (previously the Sixth 
Amendment), where either current, terminating, or terminated partners are permitted by the Company to exchange any portion 
of  their  FPUs and  Cantor  consents  to  such  exchangeability, the Company shall offer to Cantor the opportunity for Cantor to 
purchase the same number of Cantor units in BGC Holdings at the price that Cantor would have paid for Cantor units had the 
Company redeemed the FPUs. If Cantor acquires any Cantor units as a result of the purchase or redemption by BGC Holdings 
of  any  FPUs,  Cantor  will  be  entitled  to  the  benefits  (including  distributions)  of  such  units  it  acquires  from  the  date  of 
termination or bankruptcy of the applicable Founding/Working Partner. In addition, any such Cantor units purchased by Cantor 
are currently exchangeable for up to 23.6 million shares of BGC Class B common stock or, at Cantor’s election or if there are 
no such additional shares of BGC Class B common stock, shares of BGC Class A common stock, in each case on a one-for-one 
basis (subject to customary anti-dilution adjustments).

On  March  31,  2021,  Cantor  purchased  from  BGC  Holdings  an  aggregate  of  1,149,684  Cantor  units  for  aggregate 
consideration  of  $2,104,433  as  a  result  of  the  redemption  of  1,149,684  FPUs,  and  1,618,376  Cantor  units  for  aggregate 
consideration of $3,040,411 as a result of the exchange of 1,618,376 FPUs. 

On October 28, 2021, Cantor purchased from BGC Holdings an aggregate of 460,929 Cantor units for an aggregate 
consideration  of  $715,605  as  a  result  of  the  redemption  of  460,929  FPUs,  and  1,179,942  Cantor  units  for  aggregate 
consideration of $2,033,838 as a result of the exchange of 1,179,942 FPUs. 

On  May  17,  2022,  Cantor  purchased  from  BGC  Holdings  an  aggregate  427,494  Cantor  units  for  aggregate 
consideration of $841,010 as a result of the redemption of 427,494 FPUs, and 52,681 Cantor units for aggregate consideration 
of $105,867 as a result of the exchange of 52,681 FPUs. 

On October 25, 2022, Cantor purchased from BGC Holdings an aggregate of 275,833 Cantor units for an aggregate 
consideration of $397,196 as a result of the redemption of 275,833 FPUs, and 77,507 Cantor units for aggregate consideration 
of $142,613 as a result of the exchange of 77,507 FPUs. Each Cantor unit in BGC Holdings held by Cantor is exchangeable by 
Cantor at any time on a one-for-one basis (subject to adjustment) for shares of BGC Class A common stock.

As of December 31, 2022, there were 0.3 million FPUs in BGC Holdings remaining, which BGC Holdings had the 
right to redeem or exchange and with respect to which Cantor will have the right to purchase an equivalent number of Cantor 
units following such redemption or exchange.

Cantor Aurel Revenue Sharing Agreement

On June 24, 2021, the Board and Audit Committee authorized the Company's French subsidiary, Aurel BGC SAS, to 
enter into a revenue sharing agreement pursuant to which Cantor shall provide services to Aurel to support Aurel’s investment 
banking activities with respect to special purpose acquisition companies. The services provided by Cantor to Aurel in support of 
such  SPAC  Investment  Banking  Activities  shall  include  referral  of  clients,  structuring  advice,  financial  advisory  services, 
referral  of  investors,  deal  execution  services,  and  other  advisory  services  in  support  of  Aurel’s  SPAC  Investment  Banking 
Activities pursuant to its French investment services license. As compensation, Cantor shall receive a revenue share of 80% of 
Aurel’s net revenue attributable to SPAC Investment Banking Activities. The term of the revenue sharing agreement was for an 
initial  period  of  12  months,  which  automatically  renews  each  year  unless  either  party  provides  notice  of  termination  at  least 
three months prior to the anniversary. Aurel is also authorized to serve as bookrunner, underwriter or advisor in connection with 
French SPACs which are sponsored by Cantor at market rates for such services. For the year ended December 31, 2022, Aurel 
had no revenue or fees payable to Cantor attributable to SPAC Investment Banking Activities. For the year ended December 31, 
2021,  Aurel  had  $2.5  million  of  revenue  and  $1.7  million  of  fees  payable  to  Cantor,  respectively,  attributable  to  SPAC 

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Investment Banking Activities, which were included as part of “Other revenues” and “Fees to related parties”, respectively, in 
the Company's Consolidated Statements of Operations.

Transactions with Executive Officers and Directors

On March 14, 2022, the Compensation Committee approved the grant of exchange rights to Mr. Windeatt with respect 
to  135,514  non-exchangeable  BGC  Holdings  LPU-NEWs  and  27,826  non-exchangeable  PLPU-NEWs  (at  the  average 
determination price of $4.84 per unit). On August 11, 2022, the Company repurchased 135,514 exchangeable BGC Holdings 
LPU-NEWs held by Mr. Windeatt at the price of $4.08 per unit, which was the closing price of BGC Class A common stock on 
August 11, 2022, and redeemed 27,826 exchangeable PLPU-NEWs held by Mr. Windeatt for $134,678, less applicable taxes 
and withholdings.

On February 22, 2021, the Company granted Sean A. Windeatt 123,713 exchange rights with respect to 123,713 non-
exchangeable LPUs that were previously granted to Mr. Windeatt on February 22, 2019. The resulting 123,713 exchangeable 
LPUs are immediately exchangeable by Mr. Windeatt for an aggregate of 123,713 shares of BGC Class A common stock. The 
grant  was  approved  by  the  Compensation  Committee.  Additionally,  the  Compensation  Committee  approved  the  right  to 
exchange for cash 28,477 non-exchangeable PLPUs held by Mr. Windeatt, for a payment of $178,266 for taxes when the LPU 
units are exchanged.

On  April  8,  2021,  the  Compensation  Committee  approved  the  repurchase  by  the  Company  on  April  23,  2021  of 
123,713 exchangeable BGC Holdings LPU-NEWs held by Mr. Windeatt at the price of $5.65, which was the closing price of 
BGC Class A common stock on April 23, 2021, and the redemption of 28,477 exchangeable BGC Holdings PLPU-NEWs held 
by Mr. Windeatt for $178,266, less applicable taxes and withholdings.

On  April  8,  2021,  the  Compensation  Committee  approved  the  repurchase  by  the  Company  of  the  remaining  62,211 
exchangeable BGC Holdings LPUs held by Mr. Windeatt that were granted exchangeability on March 2, 2020 at the price of 
$5.38, the closing price of BGC Class A common stock on April 8, 2020.

On  April  28,  2021,  the  Compensation  Committee  approved  an  additional  monetization  opportunity  for  Mr.  Merkel. 
Effective April 29, 2021, 108,350 of Mr. Merkel’s 273,612 non-exchangeable BGC Holdings PSUs were redeemed for zero, 
101,358 of Mr. Merkel’s 250,659 non- exchangeable BGC Holdings PPSUs were redeemed for a cash payment of $575,687, 
and 108,350 shares of BGC Class A common stock were issued to Mr. Merkel. On April 29, 2021, the 108,350 shares of BGC 
Class A common stock were repurchased from Mr. Merkel at the closing price of BGC Class A common stock on that date, 
under the Company's stock buyback program.

On June 28, 2021, (i) the Company exchanged 520,380 exchangeable LPUs held by Mr. Lutnick at the price of $5.86, 
which was the closing price of BGC Class A common stock on June 28, 2021, for 520,380 shares of BGC Class A common 
stock, less applicable taxes and withholdings, resulting in the delivery of 365,229 net shares of BGC Class A common stock to 
Mr. Lutnick, and in connection with the exchange of these 520,380 exchangeable LPUs, 425,765 exchangeable PLPUs were 
redeemed for a cash payment of $1,525,705 towards taxes; (ii) 88,636 non-exchangeable LPUs were redeemed for zero, and in 
connection therewith the Company issued Mr. Lutnick 88,636 shares of BGC Class A common stock, less applicable taxes and 
withholdings, resulting in the delivery of 41,464 net shares of BGC Class A common stock to Mr. Lutnick; and (iii) 1,131,774 
H Units held by Mr. Lutnick were redeemed for 1,131,774 HDUs with a capital account of $7,017,000, and in connection with 
the redemption of these 1,131,774 H Units, 1,018,390 Preferred H Units were redeemed for $7,983,000 for taxes. 

On December 21, 2021, the Compensation Committee approved a monetization opportunity for Mr. Lutnick. Effective 
December  21,  2021,  1,939,896  of  Mr.  Lutnick's  non-exchangeable  BGC  Holdings  PPSUs  were  redeemed  for  a  payment  of 
$10,851,803.  Mr.  Lutnick  also  elected  to  redeem  all  of  his  425,766  exchangeable  BGC  Holdings  PPSUs  for  a  payment  of 
$1,525,706. In connection with the foregoing, Mr. Lutnick's 2,011,731 non-exchangeable BGC Holdings PSUs were redeemed 
for zero and 2,011,731 shares of BGC Class A common stock were issued to Mr. Lutnick, In addition, 376,651 H Units held by 
Mr. Lutnick were redeemed for 376,651 HDUs with a capital account of $2,339,003, and in connection with the redemption of 
these 376,651 H Units, 463,969 Preferred H Units were redeemed for $2,661,000 for taxes. 

On December 21, 2021, the Compensation Committee approved a monetization opportunity for Mr. Merkel. Effective 
December  21,  2021,  90,366  non-exchangeable  BGC  Holdings  PSUs  were  redeemed  for  zero,  149,301  of  Mr.  Merkel's  non-
exchangeable  BGC  Holdings  PPSUs  were  redeemed  for  a  cash  payment  of  $555,990,  and  90,366  shares  of  BGC  Class  A 
common stock were issued to Mr. Merkel.

On March 2, 2020, the Company granted Stephen M. Merkel 360,065 exchange rights with respect to 360,065 non-
exchangeable PSUs that were previously granted to Mr. Merkel. The resulting 360,065 exchangeable PSUs were immediately 
exchangeable by Mr. Merkel for an aggregate of 360,065 shares of BGC Class A common stock. The grant was approved by 
the Compensation Committee. On March 20, 2020, the Company redeemed 185,300 of such 360,065 exchangeable PSUs held 
by Mr. Merkel at the average price of shares of BGC Class A common stock sold under BGC’s CEO Program from March 10, 
2020  to  March  13,  2020  less  1%  (approximately  $4.0024  per  PSU,  for  an  aggregate  redemption  price  of  approximately 
$741,644).  The  transaction  was  approved  by  the  Compensation  Committee.  Additionally,  the  Compensation  Committee 

174

approved the right to exchange for cash 265,568 non-exchangeable PPSUs held by Mr. Merkel, for a payment of $1,507,285 for 
taxes  when  the  PSU  units  are  exchanged.  In  connection  with  the  redemption  of  the  185,300  PSUs,  122,579  PPSUs  were 
redeemed for $661,303 for taxes. On July 30, 2020, the Company redeemed the remaining 174,765 exchangeable PSUs held by 
Mr. Merkel at the price of $2.76, the closing price of BGC's Class A Common Stock on July 30, 2020. This transaction was 
approved by the Compensation Committee. In connection with the redemption of the 174,765 PSUs on July 30, 2020, 142,989 
PPSUs were redeemed for $846,182 for taxes.

On  March  2,  2020,  the  Company  granted  Shaun  D.  Lynn  883,348  exchange  rights  with  respect  to  883,348  non-
exchangeable  LPUs  that  were  previously  granted  to  Mr.  Lynn.  The  resulting  883,348  exchangeable  LPUs  were  immediately 
exchangeable by Mr. Lynn for an aggregate of 883,348 shares of BGC Class A common stock. The grant was approved by the 
Compensation Committee. Additionally, the Compensation Committee approved the right to exchange for cash 245,140 non-
exchangeable PLPUs held by Mr. Lynn, for a payment of $1,099,599 for taxes when the LPU units are exchanged. On July 30, 
2020, the Company redeemed 797,222 exchangeable LPUs held by Mr. Lynn at the price of $2.76, the closing price of BGC's 
Class A Common Stock on July 30, 2020. This transaction was approved by the Compensation Committee. In connection with 
the  redemption  of  the  797,222  exchangeable  LPUs,  221,239  exchangeable  PLPUs  were  redeemed  for  $992,388  for  taxes.  In 
connection  with  the  redemption,  Mr.  Lynn’s  remaining  86,126  exchangeable  LPUs  and  23,901  exchangeable  PLPUs  were 
redeemed for zero upon exchange in connection with his LLP status.

On  March  2,  2020,  the  Company  granted  Sean  A.  Windeatt  519,725  exchange  rights  with  respect  to  519,725  non-
exchangeable LPUs that were previously granted to Mr. Windeatt. The resulting 519,725 exchangeable LPUs were immediately 
exchangeable by Mr. Windeatt for an aggregate of 519,725 shares of BGC Class A common stock. The grant was approved by 
the Compensation Committee. Additionally, the Compensation Committee approved the right to exchange for cash 97,656 non-
exchangeable  PLPUs  held  by  Mr.  Windeatt,  for  a  payment  of  $645,779  for  taxes  when  the  LPU  units  are  exchanged.  On 
August 5, 2020, the Company redeemed 436,665 exchangeable LPUs held by Mr. Windeatt at the price of $2.90, the closing 
price of BGC's Class A common stock on August 5, 2020. This transaction was approved by the Compensation Committee. In 
connection with the redemption of the 436,665 exchangeable LPUs, 96,216 exchangeable PLPUs were redeemed for $637,866 
for taxes. In connection with the redemption, 20,849 exchangeable LPUs and 1,440 exchangeable PLPUs were redeemed for 
zero upon exchange in connection with Mr. Windeatt’s LLP status.

Additionally, on August 5, 2020, the Company granted Mr. Windeatt 40,437 exchange rights with respect to 40,437 
non-exchangeable  LPUs  that  were  previously  granted  to  Mr.  Windeatt.  The  resulting  40,437  exchangeable  LPUs  were 
immediately exchangeable by Mr. Windeatt for an aggregate of 40,437 shares of BGC Class A common stock. The grant was 
approved by the Compensation Committee. Additionally, the Compensation Committee approved the right to exchange for cash 
21,774 non-exchangeable PLPUs held by Mr. Windeatt. On August 5, 2020, the Company redeemed these 40,437 exchangeable 
LPUs held by Mr. Windeatt at the price of $2.90, the closing price of BGC's Class A common stock on August 5, 2020. This 
transaction was approved by the Compensation Committee. In connection with the redemption of these 40,437 exchangeable 
LPUs, the 21,774 exchangeable PLPUs were redeemed for $136,305 for taxes.

In addition to the foregoing, on August 6, 2020, Mr. Windeatt was granted exchange rights with respect to 43,890 non-
exchangeable Newmark Holding LPUs that were previously granted to Mr. Windeatt. Additionally, Mr. Windeatt was granted 
the right to exchange for cash 17,068 non-exchangeable Newmark Holdings PLPUs held by Mr. Windeatt. As these Newmark 
Holdings LPUs and PLPUs were previously non-exchangeable, the Company took a transaction charge of $381,961 upon grant 
of exchangeability. On August 6, 2020, Newmark redeemed the 40,209 Newmark Holdings exchangeable LPUs held by Mr. 
Windeatt for an amount equal to the closing price of Newmark’s Class A Common Stock on August 6, 2020 ($4.16) multiplied 
by  37,660  (the  amount  of  shares  of  Newmark’s  Class  A  Common  Stock  the  40,209  Newmark  Holdings  LPUs  were 
exchangeable  into  based  on  the  Exchange  Ratio  at  August  6,  2020).  In  connection  with  the  redemption  of  these  40,209 
exchangeable  Newmark  Holdings  LPUs,  15,637  exchangeable  Newmark  Holdings  PLPUs  were  redeemed  for  $194,086  for 
taxes.  In  connection  with  the  redemption,  3,681  exchangeable  Newmark  Holding  LPUs  and  1,431  exchangeable  Newmark 
Holdings PLPUs were redeemed for zero upon exchange in connection with Mr. Windeatt’s LLP status.

Transactions with the Relief Fund

During  the  year  ended  December  31,  2015,  the  Company  committed  to  make  charitable  contributions  to  the  Cantor 
Fitzgerald Relief Fund in the amount of $40.0 million, which was included in “Other expenses” in the Company’s Consolidated 
Statements of Operations for the year ended December 31, 2015 and "Accounts payable, accrued and other liabilities" in the 
Company's  Consolidated  Statements  of  Financial  Condition.  As  of  December  31,  2022,  the  Company  did  not  have  any 
remaining liability associated with this commitment, and as of December 31, 2021, the remaining liability associated with this 
commitment was $1.7 million.

175

As of December 31, 2022 and 2021, the Company had an additional liability to the Cantor Fitzgerald Relief Fund and 
The Cantor Foundation (UK) for $9.2 million and $8.3 million, respectively, which included $6.4 million and $7.2 million of 
additional expense taken in September 2022 and 2021, respectively, above the original $40.0 million commitment.

Other Transactions

As of December 31, 2021, BGC recognized $8.3 million payable to Newmark, which is included as part of “Payables 
to  related  parties”  and  “Accounts  payable,  accrued  and  other  liabilities”,  respectively,  in  the  Company's  Consolidated 
Statements of Financial Condition. The payable was a result of taxes paid by Newmark on its share of taxable income which 
were included as part of the Company's consolidated tax return in the periods prior to the Spin-Off. BGC repaid the $8.3 million 
tax payment to Newmark during the first three months ended March 31, 2022. There was no outstanding payable to Newmark 
as of December 31, 2022.

The  Company  is  authorized  to  enter  into  loans,  investments  or  other  credit  support  arrangements  for  Aqua,  an 
alternative electronic trading platform that offers new pools of block liquidity to the global equities markets; such arrangements 
are  proportionally  and  on  the  same  terms  as  similar  arrangements  between  Aqua  and  Cantor.  On  February  15,  2022  and 
February  25,  2021,  the  Board  and  Audit  Committee  increased  the  authorized  amount  by  an  additional  $1.0  million  and  $1.0 
million, respectively,  to  an aggregate  of  $21.2  million. The Company has been further authorized to provide counterparty or 
similar  guarantees  on  behalf  of  Aqua  from  time  to  time,  provided  that  liability  for  any  such  guarantees,  as  well  as  similar 
guarantees provided by Cantor, would be shared proportionally with Cantor. Aqua is 51% owned by Cantor and 49% owned by 
the  Company.  Aqua  is  accounted  for  under  the  equity  method.  During  the  years  ended  December  31,  2022  and  2021,  the 
Company made $0.6 million and $1.1 million, respectively, in contributions to Aqua. These contributions are recorded as part 
of “Investments” in the Company’s Consolidated Statements of Financial Condition.

The Company has also entered into a subordinated loan agreement with Aqua, whereby the Company loaned Aqua the 
principal sum of $980 thousand. The scheduled maturity date on the subordinated loan is September 1, 2024, and the current 
rate of interest on the loan is three-month LIBOR plus 600 basis points. The loan to Aqua is recorded as part of “Receivables 
from related parties” in the Company’s Consolidated Statements of Financial Condition. The Company did not recognize any 
interest  income  on  the  subordinated  loan  subsequent  to  being  designated  as  a  non-accrual  loan  in  November  2022.  As  of 
December  31,  2022,  the  Company  wrote  off  $550  thousand  of  the  subordinated  loan,  which  was  recorded  as  part  of  "Other 
expenses" on the Company's Consolidated Statements of Operations.

On  October  25,  2016,  the  Board  and  Audit  Committee  authorized  the  purchase  of  9,000  Class  B  Units  of  Lucera, 
representing all of the issued and outstanding Class B Units of Lucera not already owned by the Company. On November 4, 
2016,  the  Company  completed  this  transaction.  As  a  result  of  this  transaction,  the  Company  owns  100%  of  the  ownership 
interests in Lucera.

In  the  purchase  agreement,  by  which  the  Company  acquired  Cantor’s  remaining  interest  in  Lucera,  Cantor  agreed, 
subject  to  certain  exceptions,  not  to  solicit  certain  senior  executives  of  Lucera’s  business  and  was  granted  the  right  to  be  a 
customer of Lucera’s businesses on the best terms made available to any other customer.

The aggregate purchase price paid by the Company to Cantor consisted of approximately $24.2 million in cash plus a 
$4.8 million post-closing adjustment determined after closing based on netting Lucera’s expenses paid by Cantor after May 1, 
2016  against  accounts  receivable  owed  to  Lucera  by  Cantor  for  access  to  Lucera’s  business  from  May  1,  2016  through  the 
closing  date.  The  Company  previously  had  a  20%  ownership  interest  in  Lucera  and  accounted  for  its  investment  using  the 
equity method. The purchase has been accounted for as a transaction between entities under common control. During the years 
ended December 31, 2022, 2021 and 2020, respectively, Lucera recognized $23.2 thousand, $0.2 million and $0.7 million in 
related  party  revenues  from  Cantor.  These  revenues  are  included  in  “Data,  software  and  post-trade”  in  the  Company’s 
Consolidated Statements of Operations.

BGC Sublease From Newmark

In May 2020, BGC U.S. OpCo entered into an arrangement to sublease excess space from RKF Retail Holdings LLC, 
a  subsidiary  of  Newmark,  which  sublease  was  approved  by  the  Audit  Committee.  The  deal  was  a  one-year  sublease  of 
approximately 21,000 rentable square feet in New York City. Under the terms of the sublease, BGC U.S. OpCo paid a fixed 
rent amount of $1.1 million in addition to all operating and tax expenses attributable to the lease. In May 2021, the sublease was 
amended to provide for a rate of $15 thousand per month based on the size of utilized space, with terms extending on a month-
to-month basis, and expiring on December 31, 2021. In connection with the sublease, BGC U.S. OpCo paid $0.5 million for the 
year ended December 31, 2021.

176

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The fair values of the Senior Notes were determined using observable market prices as these securities are traded, and 
based on whether they are deemed to be actively traded, the 5.375% Senior Notes, the 3.750% Senior Notes, and the 4.375% 
Senior Notes are considered Level 2 within the fair value hierarchy.

5.125% Senior Notes 

On  May  27,  2016,  the  Company  issued  an  aggregate  of  $300.0  million  principal  amount  of  5.125%  Senior  Notes, 
which matured on May 27, 2021. The 5.125% Senior Notes were general senior unsecured obligations of the Company. The 
5.125% Senior Notes bore interest at a rate of 5.125% per year, payable in cash on May 27 and November 27 of each year, 
commencing  November  27,  2016  and  ending  on  the  maturity  date.  Prior  to  maturity,  on  August  5,  2020,  the  Company 
commenced  a  cash  tender  offer  for  any  and  all  $300.0  million  outstanding  aggregate  principal  amount  of  its  5.125%  Senior 
Notes. On August 11, 2020, the Company’s cash tender offer expired at 5:00 p.m., New York City time. As of the expiration 
time, $44.0 million aggregate principal amount of the 5.125% Senior Notes were validly tendered. These notes were redeemed 
on the settlement date of August 14, 2020. On May 27, 2021, BGC repaid the remaining $256.0 million principal plus accrued 
interest on its 5.125% Senior Notes. The Company did not record any interest expense related to the 5.125% Senior Notes for 
the year ended December 31, 2022. The Company recorded interest expense related to the 5.125% Senior Notes of $5.8 million 
and $16.3 million for the years ended December 31, 2021 and 2020, respectively.

5.375% Senior Notes

On July 24, 2018, the Company issued an aggregate of $450.0 million principal amount of 5.375% Senior Notes. The 
5.375% Senior Notes are general senior unsecured obligations of the Company. The 5.375% Senior Notes bear interest at a rate 
of 5.375% per year, payable in cash on January 24 and July 24 of each year, commencing January 24, 2019. The 5.375% Senior 
Notes will mature on July 24, 2023. The Company may redeem some or all of the 5.375% Senior Notes at any time or from 
time  to  time  for  cash  at  certain  “make-whole”  redemption  prices  (as  set  forth  in  the  Indenture  related  to  the  5.375%  Senior 
Notes). If a “Change of Control Triggering Event” (as defined in the Indenture) occurs, holders may require the Company to 
purchase all or a portion of their notes for cash at a price equal to 101% of the principal amount of the notes to be purchased 
plus any accrued and unpaid interest to, but excluding, the purchase date. The initial carrying value of the 5.375% Senior Notes 
was  $444.2  million,  net  of  the  discount  and  debt  issuance  costs  of  $5.8  million.  The  issuance  costs  are  amortized  as  interest 
expense and the carrying value of the 5.375% Senior Notes will accrete up to the face amount over the term of the notes. The 
carrying  value  of  the  5.375%  Senior  Notes  as  of  December  31,  2022  was  $449.2  million.  The  Company  recorded  interest 
expense related to the 5.375% Senior Notes of $25.5 million for each of the years ended December 31, 2022, 2021 and 2020.

3.750% Senior Notes

On  September  27,  2019,  the  Company  issued  an  aggregate  of  $300.0  million  principal  amount  of  3.750%  Senior 
Notes. The 3.750% Senior Notes are general unsecured obligations of the Company. The 3.750% Senior Notes bear interest at a 
rate of 3.750% per year, payable in cash on April 1 and October 1 of each year, commencing April 1, 2020. The 3.750% Senior 
Notes will mature on October 1, 2024. The Company may redeem some or all of the 3.750% Senior Notes at any time or from 
time  to  time  for  cash  at  certain  “make-whole”  redemption  prices  (as  set  forth  in  the  Indenture).  If  a  “Change  of  Control 
Triggering Event” (as defined in the Indenture) occurs, holders may require the Company to purchase all or a portion of their 
notes  for  cash  at  a  price  equal  to  101%  of  the  principal  amount  of  the  notes  to  be  purchased  plus  any  accrued  and  unpaid 
interest to, but excluding, the purchase date. The initial carrying value of the 3.750% Senior Notes was $296.1 million, net of 
discount and debt issuance costs of $3.9 million. The issuance costs are amortized as interest expense and the carrying value of 
the 3.750% Senior Notes will accrete up to the face amount over the term of the notes. The carrying value of the 3.750% Senior 
Notes  was  $298.6  million  as  of  December  31,  2022.  The  Company  recorded  interest  expense  related  to  the  3.750%  Senior 
Notes of $12.1 million for each of the years ended December 31, 2022, 2021, and 2020. 

4.375% Senior Notes

On July 10, 2020, the Company issued an aggregate of $300.0 million principal amount of 4.375% Senior Notes. The 
4.375%  Senior  Notes  are  general  unsecured  obligations  of  the  Company.  The  4.375%  Senior  Notes  bear  interest  at  a  rate  of 
4.375% per year, payable in cash on June 15 and December 15 of each year, commencing December 15, 2020. The 4.375% 
Senior Notes will mature on December 15, 2025. The Company may redeem some or all of the 4.375% Senior Notes at any 
time  or  from  time  to  time  for  cash  at  certain  “make-whole”  redemption  prices.  If  a  “Change  of  Control  Triggering  Event” 
occurs, holders may require the Company to purchase all or a portion of their notes for cash at a price equal to 101% of the 
principal amount of the notes to be purchased plus any accrued and unpaid interest to, but excluding, the purchase date. The 
initial carrying value of the 4.375% Senior Notes was $296.8 million, net of discount and debt issuance costs of $3.2 million. 
The issuance costs are amortized as interest expense, and the carrying value of the 4.375% Senior Notes will accrete up to the 

182

face amount over the term of the notes. The carrying value of the 4.375% Senior Notes was $298.2 million as of December 31, 
2022.  The  Company  recorded  interest  expense  related  to  the  4.375%  Senior  Notes  of  $13.8  million,  $13.8  million,  and  $6.5 
million for the years ended December 31, 2022, 2021, and 2020, respectively. 

Collateralized Borrowings 

On May 31, 2017, the Company entered into a $29.9 million secured loan arrangement, under which it pledged certain 
fixed assets as security for a loan. This arrangement incurred interest at a fixed rate of 3.44% per year and matured on May 31, 
2021; therefore, there were no borrowings outstanding as of December 31, 2022 and 2021. The Company did not record any 
interest  expense  related  to  this  arrangement  for  the  year  ended  December  31,  2022.  The  Company  recorded  interest  expense 
related to this secured loan arrangement of $40 thousand and $0.3 million for the years ended December 31, 2021 and 2020, 
respectively.

On April 8, 2019, the Company entered into a $15.0 million secured loan arrangement, under which it pledged certain 
fixed assets as security for a loan. This arrangement incurs interest at a fixed rate of 3.77% and matures on April 8, 2023. As of 
December 31, 2022 and December 31, 2021, the Company had $2.0 million and $5.9 million, respectively, outstanding related 
to  this  secured  loan  arrangement.  The  book  value  of  the  fixed  assets  pledged  as  of  December  31,  2022  and  2021  was  $10 
thousand  and  $0.1  million,  respectively.  The  Company  recorded  interest  expense  related  to  this  secured  loan  arrangement  of 
$0.1 million, $0.3 million and $0.4 million for the years ended December 31, 2022, 2021 and 2020, respectively.

On April 19, 2019, the Company entered into a $10.0 million secured loan arrangement, under which it pledged certain 
fixed assets as security for a loan. This arrangement incurs interest at a fixed rate of 3.89% and matures on April 19, 2023. As 
of  December  31,  2022  and  December  31,  2021,  the  Company  had  $1.3  million  and  $3.8  million,  respectively,  outstanding 
related to this secured loan arrangement. The book value of the fixed assets pledged as of December 31, 2022 and 2021 was 
$0.3 million and $1.0 million, respectively. The Company recorded interest expense related to this secured loan arrangement of 
$0.1 million, $0.2 million and $0.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Short-term Borrowings

On August 22, 2017, the Company entered into a committed unsecured loan agreement with Itau Unibanco S.A. The 
agreement provides for short-term loans of up to $3.8 million (BRL 20.0 million). The maturity date of this agreement is March 
8, 2023. Borrowings under this agreement bear interest at the Brazilian Interbank offering rate plus 3.20%. As of December 31, 
2022, there were $1.9 million (BRL 10.0 million) of borrowings outstanding under the agreement. As of December 31, 2021, 
there  were  no  borrowings  outstanding  under  this  agreement.  As  of  December  31,  2022,  the  interest  rate  was  17.0%.  The 
Company recorded interest expense related to the agreement of $0.3 million, $0.2 million and $0.3 million for the years ended 
December 31, 2022, 2021 and 2020, respectively.

On August 23, 2017, the Company entered into a committed unsecured credit agreement with Itau Unibanco S.A. The 
agreement  provided  for  an  intra-day  overdraft  credit  line  up  to  $9.6  million  (BRL  50.0  million).  On  August  20,  2021,  the 
agreement was renegotiated, increasing the credit line to $11.5 million (BRL 60.0 million). The maturity date of the agreement 
is May 21, 2023. This agreement bears a fee of 1.35% per year. As of December 31, 2022 and December 31, 2021, there were 
no borrowings outstanding under this agreement. The Company recorded bank fees related to the agreement of $0.2 million, 
$0.1 million, and $0.1 million for each of the years ended December 31, 2022, 2021 and 2020, respectively.

On January 25, 2021, the Company entered into a committed unsecured loan agreement with Banco Daycoval S.A., 
which  provided  for  short-term  loans  of  up  to  $1.9  million  (BRL  10.0  million)  and  was  renegotiated  on  June  1,  2021.  The 
amended agreement provided for short-term loans of up to $3.8 million (BRL 20.0 million). Borrowings under this agreement 
bore interest at the Brazilian Interbank offering rate plus 3.66%. During September 2022, the borrowings under this agreement 
were repaid in full, and the loan was terminated on September 27, 2022. As of December 31, 2022, there were no borrowings 
outstanding  under  the  agreement.  As  of  December  31,  2021,  there  were  $3.6  million  (BRL  20.0  million)  of  borrowings 
outstanding  under  the  agreement.  As  of  December  31,  2021,  the  interest  rate  was  12.90%.  The  Company  recorded  interest 
expense related to the agreement of $0.2 million for each of the years ended December 31, 2022 and 2021. The Company did 
not record any interest expense related to the agreement for the year ended December 31, 2020.

18.

Compensation

The Compensation Committee may grant various equity-based awards, including RSUs, restricted stock, stock options,
LPUs and shares of BGC Class A common stock. Upon vesting of RSUs, issuance of restricted stock, exercise of stock options 
and redemption/exchange of LPUs, the Company generally issues new shares of BGC Class A common stock.

183

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For the RSUs that vested during the years ended December 31, 2022 and 2021, the Company withheld shares of BGC 
Class A common stock valued at $6.6 million and $4.4 million to pay taxes due at the time of vesting. As of December 31, 
2022,  there  was  approximately  $42.0  million  of  total  unrecognized  compensation  expense  related  to  unvested  RSUs  held  by 
BGC employees and directors that is expected to be recognized over a weighted-average period of 2.42 years.

Acquisitions

In  connection  with  certain  of  its  acquisitions,  the  Company  has  granted  certain  LPUs,  RSUs,  and  other  deferred 
compensation awards. As of December 31, 2022 and 2021, the aggregate estimated fair value of these acquisition-related LPUs 
and RSUs was $5.9 million and $8.9 million, respectively. As of December 31, 2022 and 2021, the aggregate estimated fair 
value of the deferred compensation awards was $23.9 million and $21.7 million, respectively. The liability for such acquisition-
related  LPUs  and  RSUs  is  included  in  “Accounts  payable,  accrued  and  other  liabilities”  on  the  Company’s  Consolidated 
Statements of Financial Condition.

Restricted Stock

BGC  employees  hold  shares  of  BGC  and  Newmark  restricted  stock.  Such  restricted  shares  are  generally  salable  by 
partners in five to ten years. Partners who agree to extend the length of their employment agreements and/or other contractual 
modifications  sought  by  the  Company  are  expected  to  be  able  to  sell  their  restricted  shares  over  a  shorter  time  period. 
Transferability  of  the  restricted  shares  of  stock  is  not  subject  to  continued  employment  or  service  with  the  Company  or  any 
affiliate or subsidiary of the Company; however, transferability is subject to compliance with BGC and its affiliates’ customary 
non-compete obligations.

During  the  years  ended  December  31,  2022  and  2021,  approximately  66  thousand  and  140  thousand,  respectively, 
BGC or Newmark restricted shares held by BGC employees were forfeited in connection with this provision. During the years 
ended  December  31,  2022  and  2021,  the  Company  released  the  restrictions  with  respect  to  0.3  million  and  1.1  million, 
respectively, BGC shares held by BGC employees. As of December 31, 2022 and 2021, there were 2.3 million and 2.6 million 
restricted BGC shares held by BGC employees outstanding, respectively. Additionally, during the years ended December 31, 
2022 and 2021, Newmark released the restrictions with respect to 0.1 million and 0.5 million, respectively, restricted Newmark 
shares held by BGC employees. As of December 31, 2022 and 2021, there were 1.1 million and 1.2 million restricted Newmark 
shares held by BGC employees outstanding, respectively.

Deferred Compensation

The  Company  maintains  a  deferred  cash  award  program,  which  provides  for  the  grant  of  deferred  cash  incentive 
compensation to eligible employees. The Company may pay certain bonuses in the form of deferred cash compensation awards, 
which generally vest over a future service period.

The total compensation expense recognized in relation to the deferred cash compensation awards for the years ended 
December 31, 2022, 2021 and 2020 was $(0.5) million, $0.3 million and $0.8 million respectively. As of December 31, 2022 
and 2021, the total liability for the deferred cash compensation awards was $0.1 million and $0.8 million, respectively, which is 
included in “Accrued compensation” on the Company’s Consolidated Statements of Financial Condition. As of December 31, 
2022, total unrecognized compensation cost related to deferred cash compensation, prior to the consideration of forfeitures, was 
approximately $0.1 million and is expected to be recognized over a weighted-average period of 2.3 years.

187

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involved,  from  time  to  time,  in  reviews,  examinations,  investigations  and  proceedings  by  governmental  and  self-regulatory 
agencies  (both  formal  and  informal)  regarding  the  Company’s  businesses,  operations,  reporting  or  other  matters,  which  may 
result in regulatory, civil and criminal judgments, settlements, fines, penalties, injunctions, enhanced oversight, remediation, or 
other  relief.  The  following  generally  does  not  include  matters  that  the  Company  has  pending  against  other  parties  which,  if 
successful, would result in awards in favor of the Company or its subsidiaries.

Employment, Competitor-Related and Other Litigation

From time to time, the Company and its subsidiaries are involved in litigation, claims and arbitrations in the U.S. and 
internationally, relating to, inter alia, various employment matters, including with respect to termination of employment, hiring 
of employees currently or previously employed by competitors, terms and conditions of employment and other matters. In light 
of the competitive nature of the brokerage industry, litigation, claims and arbitration between competitors regarding employee 
hiring are not uncommon. The Company is also involved, from time to time, in other reviews, investigations and proceedings 
by  governmental  and  self-regulatory  agencies  (both  formal  and  informal)  regarding  the  Company’s  businesses.  Any  such 
actions  may  result  in  regulatory,  civil  or  criminal  judgments,  settlements,  fines,  penalties,  injunctions,  enhanced  oversight, 
remediation, or other relief.

Legal  reserves  are  established  in  accordance  with  U.S.  GAAP  guidance  on  Accounting  for  Contingencies  when  a 
material legal liability is both probable and reasonably estimable. Once established, reserves are adjusted when there is more 
information  available  or  when  an  event  occurs  requiring  a  change.  The  outcome  of  such  items  cannot  be  determined  with 
certainty.  The  Company  is  unable  to  estimate  a  possible  loss  or  range  of  loss  in  connection  with  specific  matters  beyond  its 
current accruals and any other amounts disclosed. Management believes that, based on currently available information, the final 
outcome of these current pending matters will not have a material adverse effect on the Company’s financial condition, results 
of operations, or cash flows.

Letter of Credit Agreements

The Company has irrevocable uncollateralized letters of credit with various banks, where the beneficiaries are clearing 
organizations through which it transacts, that are used in lieu of margin and deposits with those clearing organizations. As of 
December 31, 2022 and 2021, the Company was contingently liable for $1.6 million and $1.8 million, respectively, under these 
letters of credit.

Risk and Uncertainties

The  Company  generates  revenues  by  providing  financial  intermediary  and  brokerage  activities  to  institutional 
customers  and  by  executing  and,  in  some  cases,  clearing  transactions  for  institutional  counterparties.  Revenues  for  these 
services are transaction-based. As a result, revenues could vary based on the transaction volume of global financial markets. 
Additionally,  financing  is  sensitive  to  interest  rate  fluctuations,  which  could  have  an  impact  on  the  Company’s  overall 
profitability.

During  the  year  ended  December  31,  2022,  the  Company  recorded  a  $11.4  million  reserve  for  a  potential  loss 
associated with Russia's Invasion of Ukraine, which is included in "Other expenses" in the Company's Consolidated Statements 
of Operations, and which was recorded as part of the CECL reserve (see Note 25—“Current Expected Credit Losses (CECL)” 
for additional information).

Insurance

The Company is self-insured for health care claims, up to a stop-loss amount for eligible participating employees and 
qualified  dependents  in  the  U.S.,  subject  to  deductibles  and  limitations.  The  Company’s  liability  for  claims  incurred  but  not 
reported is determined based on an estimate of the ultimate aggregate liability for claims incurred. The estimate is calculated 
from  actual  claim  rates  and  adjusted  periodically  as  necessary.  The  Company  has  accrued  $2.4  million  and  $0.4  million  in 
health care claims as of December 31, 2022 and 2021, respectively. The Company does not expect health care claims to have a 
material impact on its financial condition, results of operations, or cash flows.

Guarantees

The Company provides guarantees to securities clearinghouses and exchanges which meet the definition of a guarantee 
under FASB interpretations. Under these standard securities clearinghouse and exchange membership agreements, members are 
required to guarantee, collectively, the performance of other members and, accordingly, if another member becomes unable to 
satisfy  its  obligations  to  the  clearinghouse  or  exchange,  all  other  members  would  be  required  to  meet  the  shortfall.  In  the 

190

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The Company recognizes interest and penalties related to unrecognized tax benefits in “Provision (benefit) for income 
taxes”  in  the  Company’s  Consolidated  Statements  of  Operations.  As  of  December  31,  2022,  the  Company  had  accrued  $2.7 
million for income tax-related interest and penalties of which $1.0 million was accrued during 2022.

21.

Regulatory Requirements

Many  of  the  Company’s  businesses  are  subject  to  regulatory  restrictions  and  minimum  capital  requirements.  These

regulatory restrictions and capital requirements may restrict the Company’s ability to withdraw capital from its subsidiaries.

Certain U.S. subsidiaries of the Company are registered as U.S. broker-dealers or FCMs subject to Rule 15c3-1 of the 
SEC and Rule 1.17 of the CFTC, which specify uniform minimum net capital requirements, as defined, for their registrants, and 
also  require  a  significant  part  of  the  registrants’  assets  be  kept  in  relatively  liquid  form.  As  of  December  31,  2022,  the 
Company’s U.S. subsidiaries had net capital in excess of their minimum capital requirements.

Certain U.K. and European subsidiaries of the Company are regulated by their national regulator, which include the 
FCA and L'Autorité des Marchés Financiers and must maintain financial resources (as defined by their national regulator) in 
excess  of  the  total  financial  requirement  (as  defined  by  their  national  regulator).  As  of  December  31,  2022,  the  U.K.  and 
European subsidiaries had financial resources in excess of their requirements.

Certain  other  subsidiaries  of  the  Company  are  subject  to  regulatory  and  other  requirements  of  the  jurisdictions  in 

which they operate.

In  addition,  the  Company’s  SEFs,  BGC  Derivative  Markets  and  GFI  Swaps  Exchange  are  required  to  maintain 
financial  resources  to  cover  operating  costs  for  at  least  one  year,  keeping  at  least  enough  cash  or  highly  liquid  securities  to 
cover six months’ operating costs.

The Company also operates a DCM and DCO through the Futures Exchange Group, which are required to maintain 
financial  resources  to  cover  operating  costs  for  at  least  one  year,  keeping  at  least  enough  cash  or  highly  liquid  securities  to 
cover six months’ operating costs.

The  regulatory  requirements  referred  to  above  may  restrict  the  Company’s  ability  to  withdraw  capital  from  its 
regulated subsidiaries. As of December 31, 2022, the Company’s regulated subsidiaries held $666.0 million of net assets. These 
subsidiaries had aggregate regulatory net capital, as defined, in excess of the aggregate regulatory requirements, as defined, of 
$342.2 million.

22.

Segment, Geographic and Product Information

Segment Information

The  Company  currently  operates  in  one  reportable  segment,  brokerage  services.  BGC  provides  or  has  provided 
brokerage  services  to  the  financial  markets,  integrated  Voice,  Hybrid  and  Fully  Electronic  brokerage  in  a  broad  range  of 
products, including fixed income (Rates and Credit), FX, Equities, Energy and Commodities, and Futures and Options. BGC 
also  provides  a  wide  range  of  services,  including  trade  execution,  brokerage,  clearing,  trade  compression,  post-trade, 
information,  consulting,  and  other  back-office  services  to  a  broad  range  of  financial  and  non-financial  institutions.  On 
November 1, 2021, the Company sold its Insurance brokerage business to The Ardonagh Group (see Note 5— "Divestitures").

Geographic Information 

The Company offers products and services in the U.K., U.S., Asia (including Australia), Other Europe, MEA, France, 

and Other Americas. Information regarding revenues is as follows (in thousands):

194

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ITEM  9. 
FINANCIAL DISCLOSURE

CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND 

None

ITEM 9A. 

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

BGC Partners maintains disclosure controls and procedures that are designed to ensure that information required to be 
disclosed by BGC Partners is recorded, processed, accumulated, summarized and communicated to its management, including 
its  Chairman  of  the  Board  and  Chief  Executive  Officer  and  its  Chief  Financial  Officer,  to  allow  timely  decisions  regarding 
required disclosures, and reported within the time periods specified in the SEC’s rules and forms. The Chairman of the Board 
and Chief Executive Officer and the Chief Financial Officer have performed an evaluation of the effectiveness of the design and 
operation  of  BGC  Partners  disclosure  controls  and  procedures  as  of  December  31,  2022.  Based  on  that  evaluation,  the 
Chairman of the Board and Chief Executive Officer and the Chief Financial Officer concluded that BGC Partners’ disclosure 
controls and procedures were effective as of December 31, 2022.

Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as 
such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our 
management,  including  our  Chairman  and  Chief  Executive  Officer,  and  our  Chief  Financial  Officer,  we  conducted  an 
evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2022 based upon criteria set 
forth  in  the  Internal  Control—Integrated  Framework  issued  by  the  Committee  of  Sponsoring  Organizations  of  the  Treadway 
Commission (2013 framework) (COSO). Our internal control over financial reporting includes policies and procedures that are 
intended  to  provide  reasonable  assurance  regarding  the  reliability  of  financial  reporting  and  the  preparation  of  financial 
statements for external reporting purposes in accordance with U.S. GAAP. 

Based  on  the  results  of  our  2022  evaluation,  our  management  concluded  that  our  internal  control  over  financial 
reporting  was  effective  as  of  December  31,  2022.  We  reviewed  the  results  of  management's  assessment  with  our  Audit 
Committee.

The effectiveness of our internal control over financial reporting as of December 31, 2022 has been audited by Ernst & 
Young LLP, an independent registered public accounting firm, as stated in their report, which is included in this Annual Report 
on  Form  10-K.  Such  report  expresses  an  unqualified  opinion  on  the  effectiveness  of  the  Company's  internal  controls  over 
financial reporting as of December 31, 2022.

Changes in Internal Control over Financial Reporting

During the year ended December 31, 2022, there were no changes in our internal control over financial reporting that 

materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. 

OTHER INFORMATION

Not Applicable

ITEM 9C. 

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not Applicable

201

PART III

ITEM 10. 

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information appearing under “Election of Directors,” “Information about our Executive Officers,” “Section 16(a) 
Beneficial  Ownership  Reporting  Compliance,”  and  “Code  of  Ethics  and  Whistleblower  Procedures”  in  the  2023  Proxy 
Statement is hereby incorporated by reference in response to this Item 10.

ITEM 11. 

EXECUTIVE COMPENSATION

The  information  appearing  under  “Compensation  Discussion  and  Analysis,”  “Compensation  Committee  Report,” 
“Executive Compensation” and “Compensation Committee Interlocks and Insider Participation” in the 2023 Proxy Statement is 
hereby incorporated by reference in response to this Item 11.

ITEM 12. 

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND 
RELATED STOCKHOLDER MATTERS

The information appearing under “Security Ownership of Certain Beneficial Owners and Management” and “Equity 
Compensation Plan Information as of December 31, 2022” in the 2023 Proxy Statement is hereby incorporated by reference in 
response to this Item 12.

ITEM 13. 

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR 
INDEPENDENCE

The  information  appearing  under  “Certain  Relationships  and  Related  Transactions  and  Director  Independence”  and 
“Election  of  Directors—Independence  of  Directors”  in  the  2023  Proxy  Statement  is  hereby  incorporated  by  reference  in 
response to this Item 13.

ITEM 14. 

PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information appearing under “Independent Registered Public Accounting Firm Fees” and “Audit Committee Pre-
Approval Policies and Procedures” in the 2023 Proxy Statement is hereby incorporated by reference in response to this Item 14.

202

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(cid:7)(cid:19)(cid:11)(cid:23)(cid:23)(cid:18)(cid:8)(cid:1)
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(cid:17)(cid:16)(cid:17)

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(cid:6)(cid:39)(cid:53)(cid:70)(cid:57)(cid:66)(cid:72)(cid:1)(cid:26)(cid:67)(cid:65)(cid:68)(cid:53)(cid:66)(cid:77)(cid:1)(cid:38)(cid:66)(cid:64)(cid:77)(cid:7)

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(cid:19)(cid:24)(cid:11)(cid:18)(cid:22)(cid:20)(cid:1)

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(cid:21)(cid:15)(cid:11)(cid:20)(cid:24)(cid:19)(cid:1)

(cid:3)(cid:1)

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(cid:72)(cid:57)(cid:74)(cid:76)(cid:70)(cid:61)(cid:74)(cid:75)(cid:64)(cid:65)(cid:72)(cid:1)(cid:65)(cid:70)(cid:76)(cid:61)(cid:74)(cid:61)(cid:75)(cid:76)(cid:75)

(cid:35)(cid:75)(cid:75)(cid:77)(cid:57)(cid:70)(cid:59)(cid:61)(cid:1)(cid:71)(cid:62)(cid:1)(cid:29)(cid:68)(cid:57)(cid:75)(cid:75)(cid:1)(cid:27)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:59)(cid:71)(cid:70)(cid:76)(cid:65)(cid:70)(cid:63)(cid:61)(cid:70)(cid:76)(cid:1)(cid:29)(cid:68)(cid:57)(cid:75)(cid:75)(cid:1)(cid:27)(cid:1)(cid:59)(cid:71)(cid:69)(cid:69)(cid:71)(cid:70)(cid:1)(cid:75)(cid:76)(cid:71)(cid:59)(cid:67)(cid:1)(cid:57)(cid:70)(cid:60)(cid:1)(cid:68)(cid:65)(cid:69)(cid:65)(cid:76)(cid:61)(cid:60)(cid:1)

(cid:72)(cid:57)(cid:74)(cid:76)(cid:70)(cid:61)(cid:74)(cid:75)(cid:64)(cid:65)(cid:72)(cid:1)(cid:65)(cid:70)(cid:76)(cid:61)(cid:74)(cid:61)(cid:75)(cid:76)(cid:75)(cid:1)(cid:62)(cid:71)(cid:74)(cid:1)(cid:57)(cid:59)(cid:73)(cid:77)(cid:65)(cid:75)(cid:65)(cid:76)(cid:65)(cid:71)(cid:70)(cid:75)

(cid:3)(cid:1)

(cid:18)(cid:19)(cid:11)(cid:23)(cid:23)(cid:24)(cid:1) (cid:3)(cid:1)

(cid:16)(cid:20)(cid:22)(cid:11)(cid:20)(cid:19)(cid:22)(cid:1) (cid:3)(cid:1)

(cid:16)(cid:16)(cid:11)(cid:18)(cid:23)(cid:23)(cid:1)

(cid:17)(cid:11)(cid:22)(cid:16)(cid:15)(cid:1)

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(cid:16)(cid:11)(cid:20)(cid:22)(cid:23)(cid:1)

(cid:35)(cid:45)(cid:45)(cid:1)(cid:41)(cid:43)(cid:43)(cid:54)(cid:52)(cid:55)(cid:41)(cid:53)(cid:64)(cid:49)(cid:53)(cid:47)(cid:1)(cid:31)(cid:54)(cid:59)(cid:45)(cid:58)(cid:1)(cid:59)(cid:54)(cid:1)(cid:24)(cid:49)(cid:53)(cid:41)(cid:53)(cid:43)(cid:49)(cid:41)(cid:51)(cid:1)(cid:35)(cid:59)(cid:41)(cid:59)(cid:45)(cid:52)(cid:45)(cid:53)(cid:59)(cid:58)(cid:7)

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BGC PARTNERS, INC.
(Parent Company Only)
NOTES TO FINANCIAL STATEMENTS

1.

Organization and Basis of Presentation

The accompanying Parent Company Only Financial Statements of BGC Partners should be read in conjunction with

the Consolidated Financial Statements of BGC Partners and subsidiaries and the notes thereto. 

For  the  year  ended  December  31,  2022,  the  Company  declared  and  paid  cash  dividends  of  $0.04  per  share  to  BGC 
Class A and Class B common stockholders. For the year ended December 31, 2021 and 2020, the comparable cash dividend 
amounts were $0.04 per share and $0.17 per share, respectively. 

2.

Commitments, Contingencies and Guarantees

On May 31, 2017, the Company entered into a $29.9 million secured loan arrangement, under which it pledged certain
fixed assets as security for a loan. This arrangement is guaranteed by the Parent Company and incurred interest at a fixed rate of 
3.44% per year and matured on May 31, 2021; therefore, there were no borrowings outstanding as of December 31, 2022 and 
2021. The Company did not record any interest expense related to this arrangement for the year ended December 31, 2022. The 
Company  recorded  interest  expense  related  to  this  secured  loan  arrangement  of  $40  thousand  and  $0.3  million  for  the  years 
ended December 31, 2021 and 2020, respectively.

On April 8, 2019, the Company entered into a $15.0 million secured loan arrangement, under which it pledged certain 
fixed assets as security for a loan. This arrangement is guaranteed by the Parent Company and incurs interest at a fixed rate of 
3.77% and matures on April 8, 2023. As of December 31, 2022 and December 31, 2021, the Company had $2.0 million and 
$5.9 million, respectively, outstanding related to this secured loan arrangement. The book value of the fixed assets pledged as 
of  December  31,  2022  and  2021  was  $10  thousand  and  $0.1  million,  respectively.  The  Company  recorded  interest  expense 
related to this secured loan arrangement of $0.1 million, $0.3 million and $0.4 million for the years ended December 31, 2022, 
2021 and 2020, respectively.

On April 19, 2019, the Company entered into a $10.0 million secured loan arrangement, under which it pledged certain 
fixed assets as security for a loan. This arrangement is guaranteed by the Parent Company and incurs interest at a fixed rate of 
3.89% and matures on April 19, 2023. As of December 31, 2022 and December 31, 2021, the Company had $1.3 million and 
$3.8 million, respectively, outstanding related to this secured loan arrangement. The book value of the fixed assets pledged as 
of  December  31,  2022  and  2021  was  $0.3  million  and  $1.0  million,  respectively.  The  Company  recorded  interest  expense 
related to this secured loan arrangement of $0.1 million, $0.2 million and $0.3 million for the years ended December 31, 2022, 
2021 and 2020, respectively.

3.

Notes Payable and Other Borrowings

Unsecured Senior Revolving Credit Agreement

On November 28, 2018, the Company entered into the Revolving Credit Agreement with Bank of America, N.A., as
administrative  agent,  and  a  syndicate  of  lenders,  which  replaced  the  existing  committed  unsecured  senior  revolving  credit 
agreement. The maturity date of the Revolving Credit Agreement was November 28, 2020, and the maximum revolving loan 
balance was $350.0 million. Borrowings under this Revolving Credit Agreement bore interest at either LIBOR or a defined base 
rate  plus  additional  margin.  On  December  11,  2019,  the  Company  entered  into  an  amendment  to  the  Revolving  Credit 
Agreement.  Pursuant  to  the  amendment,  the  maturity  date  was  extended  to  February  26,  2021.  On  February  26,  2020,  the 
Company  entered  into  a  second  amendment  to  the  Revolving  Credit  Agreement,  pursuant  to  which,  the  maturity  date  was 
extended by two years to February 26, 2023. There was no change to the interest rate or the maximum revolving loan balance. 
On  November  1,  2021,  the  Company  repaid  in  full  the  $300.0  million  borrowings  outstanding  under  the  Revolving  Credit 
Agreement.  As  of  both  December  31,  2022  and  2021,  there  were  no  borrowings  outstanding  under  the  Revolving  Credit 
Agreement. The average interest rate on the outstanding borrowings was 0.00% and 2.09% for the years ended December 31, 
2022  and  2021,  respectively.  The  Company  recorded  interest  expense  related  to  the  Revolving  Credit  Agreement  of  $2.3 
million, $3.6 million and $5.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. 

5.125% Senior Notes 

On  May  27,  2016,  the  Company  issued  an  aggregate  of  $300.0  million  principal  amount  of  5.125%  Senior  Notes, 
which matured on May 27, 2021. The 5.125% Senior Notes were general senior unsecured obligations of the Company. The 
5.125% Senior Notes bore interest at a rate of 5.125% per year, payable in cash on May 27 and November 27 of each year, 

214

commencing  November  27,  2016  and  ending  on  the  maturity  date.  Prior  to  maturity,  on  August  5,  2020,  the  Company 
commenced  a  cash  tender  offer  for  any  and  all  $300.0  million  outstanding  aggregate  principal  amount  of  its  5.125%  Senior 
Notes. On August 11, 2020, the Company’s cash tender offer expired at 5:00 p.m., New York City time. As of the expiration 
time, $44.0 million aggregate principal amount of the 5.125% Senior Notes were validly tendered. These notes were redeemed 
on the settlement date of August 14, 2020. On May 27, 2021, BGC repaid the remaining $256.0 million principal plus accrued 
interest on its 5.125% Senior Notes. The Company did not record any interest expense related to the 5.125% Senior Notes for 
the year ended December 31, 2022. The Company recorded interest expense related to the 5.125% Senior Notes of $5.8 million 
and $16.3 million for the years ended December 31, 2021 and 2020, respectively.

5.375% Senior Notes

On July 24, 2018, the Company issued an aggregate of $450.0 million principal amount of 5.375% Senior Notes. The 
5.375% Senior Notes are general senior unsecured obligations of the Company. The 5.375% Senior Notes bear interest at a rate 
of 5.375% per year, payable in cash on January 24 and July 24 of each year, commencing January 24, 2019. The 5.375% Senior 
Notes will mature on July 24, 2023. The Company may redeem some or all of the 5.375% Senior Notes at any time or from 
time  to  time  for  cash  at  certain  “make-whole”  redemption  prices  (as  set  forth  in  the  Indenture  related  to  the  5.375%  Senior 
Notes). If a “Change of Control Triggering Event” (as defined in the Indenture) occurs, holders may require the Company to 
purchase all or a portion of their notes for cash at a price equal to 101% of the principal amount of the notes to be purchased 
plus any accrued and unpaid interest to, but excluding, the purchase date. The initial carrying value of the 5.375% Senior Notes 
was  $444.2  million,  net  of  the  discount  and  debt  issuance  costs  of  $5.8  million.  The  issuance  costs  are  amortized  as  interest 
expense and the carrying value of the 5.375% Senior Notes will accrete up to the face amount over the term of the notes. The 
carrying  value  of  the  5.375%  Senior  Notes  as  of  December  31,  2022  was  $449.2  million.  The  Company  recorded  interest 
expense related to the 5.375% Senior Notes of $25.5 million, $25.5 million and $25.5 million for the years ended December 31, 
2022, 2021 and 2020, respectively.

3.750% Senior Notes

On  September  27,  2019,  the  Company  issued  an  aggregate  of  $300.0  million  principal  amount  of  3.750%  Senior 
Notes. The 3.750% Senior Notes are general unsecured obligations of the Company. The 3.750% Senior Notes bear interest at a 
rate of 3.750% per year, payable in cash on April 1 and October 1 of each year, commencing April 1, 2020. The 3.750% Senior 
Notes will mature on October 1, 2024. The Company may redeem some or all of the 3.750% Senior Notes at any time or from 
time  to  time  for  cash  at  certain  “make-whole”  redemption  prices  (as  set  forth  in  the  Indenture).  If  a  “Change  of  Control 
Triggering Event” (as defined in the Indenture) occurs, holders may require the Company to purchase all or a portion of their 
notes  for  cash  at  a  price  equal  to  101%  of  the  principal  amount  of  the  notes  to  be  purchased  plus  any  accrued  and  unpaid 
interest to, but excluding, the purchase date. The initial carrying value of the 3.750% Senior Notes was $296.1 million, net of 
discount and debt issuance costs of $3.9 million. The issuance costs will be amortized as interest expense and the carrying value 
of the 3.750% Senior Notes will accrete up to the face amount over the term of the notes. The carrying value of the 3.750% 
Senior  Notes  was  $298.6  million  as  of  December  31,  2022.  The  Company  recorded  interest  expense  related  to  the  3.750% 
Senior  Notes  of  $12.1  million,  $12.1  million  and  $12.1  million  for  the  years  ended  December  31,  2022,  2021  and  2020, 
respectively.

4.375% Senior Notes

On July 10, 2020, the Company issued an aggregate of $300.0 million principal amount of 4.375% Senior Notes. The 
4.375%  Senior  Notes  are  general  unsecured  obligations  of  the  Company.  The  4.375%  Senior  Notes  bear  interest  at  a  rate  of 
4.375% per year, payable in cash on June 15 and December 15 of each year, commencing December 15, 2020. The 4.375% 
Senior Notes will mature on December 15, 2025. The Company may redeem some or all of the 4.375% Senior Notes at any 
time  or  from  time  to  time  for  cash  at  certain  “make-whole”  redemption  prices.  If  a  “Change  of  Control  Triggering  Event” 
occurs, holders may require the Company to purchase all or a portion of their notes for cash at a price equal to 101% of the 
principal amount of the notes to be purchased plus any accrued and unpaid interest to, but excluding, the purchase date. The 
initial carrying value of the 4.375% Senior Notes was $296.8 million, net of discount and debt issuance costs of $3.2 million. 
The issuance costs will be amortized as interest expense, and the carrying value of the 4.375% Senior Notes will accrete up to 
the  face  amount  over  the  term  of  the  notes.  The  carrying  value  of  the  4.375%  Senior  Notes  was  $298.2  million  as 
of  December  31,  2022.  The  Company  recorded  interest  expense  related  to  the  4.375%  Senior  Notes  of  $13.8  million,  $13.8 
million, and $6.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. 

215

THE EXHIBITS LISTED UNDER “ITEM 15. EXHIBITS AND FINANCIAL STATEMENT 
SCHEDULES” ARE AVAILABLE IN BGC’S STAND-ALONE FORM 10-K, WHICH IS AVAILABLE 
ON OUR WEBSITE. 

216

Non-GAAP Financial Measures 

This document contains non-GAAP financial  measures  that  differ  from  the  most  directly comparable measures  calculated  and 
presented  in accordance with  Generally Accepted Accounting Principles in  the United  States (“GAAP”). Non-GAAP financial 
measures used by the Company include “Adjusted Earnings before noncontrolling interests and taxes”, which is used interchangeably 
with “pre-tax Adjusted Earnings”; “Post-tax Adjusted Earnings to fully diluted shareholders”, which is used interchangeably with 
“post-tax Adjusted Earnings”; “Adjusted EBITDA”; “Liquidity”; and "Constant Currency". The definitions of these terms are below.  

Adjusted Earnings Defined 

BGC uses non-GAAP financial measures, including “Adjusted Earnings before noncontrolling interests and taxes” and “Post-
tax  Adjusted  Earnings  to  fully  diluted  shareholders”,  which  are  supplemental  measures  of  operating  results  used  by 
management  to  evaluate  the  financial  performance  of  the  Company  and  its  consolidated  subsidiaries.  BGC  believes  that 
Adjusted Earnings best reflect the operating earnings generated by the Company on a consolidated basis and are the earnings 
which management considers when managing its business. 

As  compared  with  “Income  (loss)  from  operations  before  income  taxes”  and  “Net  income  (loss)  for  fully  diluted  shares”, 
both prepared in accordance with GAAP, Adjusted Earnings calculations primarily exclude certain non-cash items and other 
expenses  that  generally  do  not  involve  the  receipt  or  outlay  of  cash  by  the  Company  and/or which  do  not  dilute  existing 
stockholders. In addition, Adjusted Earnings calculations exclude certain gains and charges that management believes do not best 
reflect the ordinary results of BGC. Adjusted Earnings is calculated by taking the most comparable GAAP measures and adjusting 
for certain items with respect to compensation expenses, non-compensation expenses, and other income, as discussed below. 

Calculations of Compensation Adjustments for Adjusted Earnings and Adjusted EBITDA 

Treatment of Equity-Based Compensation Line Item for Adjusted Earnings and Adjusted EBITDA 

The  Company’s Adjusted  Earnings  and Adjusted  EBITDA measures  exclude  all  GAAP charges  included  in  the  line  item 
“Equity-based  compensation  and  allocations  of  net  income  to  limited  partnership  units  and  FPUs”  (or  “equity-based 
compensation”  for  purposes  of  defining  the  Company’s  non-GAAP  results)  as  recorded  on  the  Company’s  GAAP 
Consolidated  Statements  of  Operations  and  GAAP  Consolidated  Statements  of  Cash  Flows.  These  GAAP  equity-based 
compensation charges reflect the following items: 

•

•

•

•

•

•

Charges with respect to grants of exchangeability, which reflect the right of holders of limited partnership units with no capital 
accounts, such as LPUs and PSUs, to exchange these units into shares of common stock, or into partnership units with capital 
accounts, such as HDUs, as well as cash paid with respect to taxes withheld or expected to be owed by the unit holder upon 
such exchange. The withholding taxes related to the exchange of certain non-exchangeable units without a capital account into 
either common shares or units with a capital account may be funded by the redemption of preferred units such as PPSUs.

Charges with respect to preferred units. Any preferred units would not be included in the Company’s fully diluted share count 
because they cannot be made exchangeable into shares of common stock and are entitled only to a fixed distribution. Preferred 
units  are granted  in  connection  with  the grant  of  certain  limited partnership  units  that  may be  granted exchangeability  or 
redeemed in connection with the grant of shares of common stock at ratios designed to cover any withholding taxes expected to 
be paid.  This  is  an  alternative  to  the  common practice  among public  companies  of  issuing  the gross amount  of  shares  to 
employees, subject to cashless withholding of shares, to pay applicable withholding taxes.

GAAP equity-based compensation charges with respect to the grant of an offsetting amount of common stock or partnership 
units with capital accounts in connection with the redemption of non-exchangeable units, including PSUs and LPUs.

Charges related to amortization of RSUs and limited partnership units.

Charges related to grants of equity awards, including common stock or partnership units with capital accounts.

Allocations of net income to  limited  partnership units and FPUs. Such  allocations  represent the  pro-rata portion  of 
post-tax GAAP earnings available to such unit holders.

The amounts of certain quarterly equity-based compensation charges are based upon the Company’s estimate of such expected charges 
during the annual period, as described further below under “Methodology for Calculating Adjusted Earnings Taxes.” 

Virtually all of BGC’s key executives and producers have equity or  partnership stakes in the Company and its subsidiaries 
and generally receive deferred equity or limited partnership units as part of their compensation. A significant percentage of 

217 

BGC’s fully diluted shares are owned by its executives, partners and employees. The Company issues limited partnership units as well as 
other forms of equity-based compensation, including grants of exchangeability into shares of common stock, to provide liquidity to its 
employees, to align the interests of its employees and management with those of common stockholders, to help motivate and retain key 
employees, and to encourage a collaborative culture that drives cross-selling and revenue growth. 

All share equivalents that are part of the Company’s equity-based compensation program, including REUs, PSUs, LPUs, HDUs, 
and other units that may be made exchangeable into common stock, as well as RSUs (which are recorded using the treasury stock 
method), are included in the fully diluted share count when issued or at the beginning of the subsequent quarter after the date of 
grant. Generally, limited partnership units other than preferred units are expected to be paid a pro-rata distribution based on BGC’s 
calculation of Adjusted Earnings per fully diluted share. However, out of an abundance of caution and in order to strengthen the 
Company’s balance sheet due the uncertain macroeconomic conditions with respect to the COVID-19 pandemic, BGC Holdings, 
L.P. has reduced its distributions of income from the operations of BGC’s businesses to its partners.

Compensation charges are also adjusted for certain other cash and non-cash items.

Certain Other Compensation-Related Adjustments for Adjusted Earnings

BGC  also  excludes  various  other  GAAP  items  that  management  views  as  not  reflective  of  the  Company’s  underlying 
performance in a given period from its calculation of Adjusted Earnings. These may include compensation-related items with 
respect to cost-saving initiatives, such as severance charges incurred in connection with headcount reductions as part of broad 
restructuring and/or cost savings plans.   

Calculation of Non-Compensation Adjustments for Adjusted Earnings 

Adjusted Earnings calculations may also exclude items such as: 

•

•

•

•

•

Non-cash GAAP charges related to the amortization of intangibles with respect to acquisitions;

Acquisition related costs;

Certain rent charges;

Non-cash GAAP asset impairment charges; and

Various  other  GAAP items  that management views as  not  reflective  of  the Company’s underlying  performance  in a  given 
period,  including  non-compensation-related  charges  incurred as  part  of broad restructuring  and/or  cost  savings  plans.  Such 
GAAP items may include charges for exiting leases and/or other long-term contracts as part of cost-saving initiatives, as well as 
non-cash impairment charges related to assets, goodwill and/or intangibles created from acquisitions.

Calculation of Adjustments for Other (income) losses for Adjusted Earnings 

Adjusted Earnings calculations also exclude certain other non-cash, non-dilutive, and/or non-economic items, which  may, in 
some periods, include: 

•

•

•

•

Gains or losses on divestitures;

Fair value adjustment of investments;

Certain other GAAP items, including gains or losses related to BGC's investments accounted for under the equity method; and

Any unusual, one-time, non-ordinary, or non-recurring gains or losses.

Methodology for Calculating Adjusted Earnings Taxes 

Although  Adjusted  Earnings  are  calculated  on  a  pre-tax  basis,  BGC  also  reports  post-tax Adjusted  Earnings  to  fully  diluted 
shareholders. The Company defines post-tax Adjusted Earnings to fully diluted shareholders as pre-tax Adjusted Earnings reduced by 
the non-GAAP tax provision described below and net income (loss) attributable to noncontrolling interest for Adjusted Earnings. 

The Company calculates its tax provision for post-tax Adjusted Earnings using an annual estimate similar to how it accounts for its 
income tax provision under GAAP. To calculate the quarterly tax provision under GAAP, BGC estimates its full fiscal year GAAP 
income  (loss)  from  operations  before  income  taxes  and  noncontrolling  interests  in subsidiaries  and  the  expected  inclusions  and 
deductions for income tax purposes, including expected equity-based compensation during the annual period. The resulting annualized 
tax  rate  is applied  to  BGC’s  quarterly  GAAP income  (loss)  from  operations before  income  taxes and  noncontrolling  interests  in 
subsidiaries. At the end of the annual period, the Company updates its estimate to reflect the actual tax amounts owed for the period.

218 

To  determine  the  non-GAAP  tax  provision,  BGC  first  adjusts  pre-tax  Adjusted  Earnings  by  recognizing  any,  and  only, 
amounts for which a tax deduction applies under applicable law. The amounts include charges with respect to equity-based 
compensation; certain charges related to employee loan forgiveness; certain net operating loss carryforwards when taken for 
statutory purposes; and certain charges related  to  tax  goodwill amortization. These adjustments may also  reflect timing and 
measurement differences, including treatment of employee loans;  changes in the value of units between the dates of grants of 
exchangeability and the date of actual unit exchange;  variations in the value of certain deferred tax assets; and liabilities and 
the different timing of permitted deductions for tax under GAAP and statutory tax requirements. 

After application of these adjustments, the result is the Company’s taxable income for its pre-ta x Adjusted Earnings, to which 
BGC then applies the statutory tax rates to determine its non-GAAP tax provision. BGC views the effective tax rate on pre-ta x 
Adjusted Earnings as equal to the amount of its non-GA AP tax provision divided by the amount of pre-tax Adjusted Earnings. 

Generally, the most significant factor affecting this non-GAAP tax provision is the amount of charges relating to equity-based 
compensation.  Because  the  charges  relating  to  equity-based  compensation  are  deductible  in  accordance  with  applicable  tax 
laws, increases in such charges have the effect of lowering the Company’s non-GA AP effective tax rate and thereby increasing 
its post-tax Adjusted Earnings. 

BGC  incurs  income  tax  expenses  based  on  the  location,  legal  structure  and  jurisdictional  taxing  authorities  of  each  of  its 
subsidiaries. Certain of the Company’s entities are taxed as U.S. partnerships and are  subject to the Unincorporated Business 
Tax (“UBT”) in New York City. Any U.S. federal and state income tax liability or benefit related to the partnership income or 
loss,  with  the  exception  of  UBT,  rests  with  the  unit  holders  rather  than  with  the  partnership  entity.  The  Company’s 
consolidated financial statements include U.S. federal, state, and local income taxes on the Company’s allocable share of the 
U.S. results of operations. Outside of the U.S., BGC is expected to operate  principally through subsidiary corporations subject 
to local income taxes. For these reasons, taxes for Adjusted Earnings are expected to be presented to show the tax provision 
the consolidated Company would expect to pay if 100 percent of earnings were taxed at global corporate rates. 

Calculations of Pre- and Post-Tax Adjusted Earnings per Share 

BGC’s pre- and post-tax Adjusted Earnings per share calculations assume either that: 

•

•

The  fully  diluted  share  count  includes  the  shares  related  to  any  dilutive  instruments,  but  excludes  the  associated
expense, net of tax, when the impact would be dilutive; or

The fully diluted share count excludes the shares related to these instruments, but includes the associated expense,  net
of tax, when the impact would be anti-dilutive.

The share count for Adjusted Earnings excludes certain shares and share equivalents expected  to be issued in future periods 
but  not  yet  eligible  to  receive  dividends  and/or  distributions.  Each  quarter,  the  dividend  payable  to  BGC’s  stockholders,  if 
any, is expected to be determined by the Company’s Board of Directors with reference to a number of factors, including  post-
tax Adjusted Earnings per share. BGC may also pay a pro-rata distribution of net income to limited partnership units, as well 
as to Cantor for its noncontrolling interest. The amount of this net income, and therefore of these payments per unit, would be 
determined using the above definition of Adjusted Earnings per share on a pre-tax basis. 

The declaration, payment, timing, and amount of any future dividends payable by the Company will be at the discretion of its 
Board of  Directors using the fully diluted share count. For  more information on any share count adjustments, see  the table 
titled “Fully Diluted Weighted-Average Share Count under GAAP and for Adjusted Earnings” in the Company’s most recent 
financial results press release. 

Management Rationale for Using Adjusted Earnings 

BGC’s  calculation  of  Adjusted  Earnings  excludes  the  items  discussed  above  because  they  are  either  non-cash  in  nature, 
because the anticipated benefits from the expenditures are not expected to be fully realized until future periods, or because the 
Company  views  results  excluding  these  items  as  a  better  reflection  of  the  underlying  performance  of  BGC’s  ongoing 
operations. Management uses Adjusted Earnings in part to help it evaluate, among other things, the overall performance of the 
Company’s business, to make decisions with respect to the Company’s operations, and to determine the amount of dividends 
payable  to  common  stockholders  and  distributions  payable  to  holders  of  limited  partnership  units.  Dividends  payable  to 
common  stockholders  and  distributions  payable  to  holders  of  limited  partnership  units  are  included  within  “Dividends  to 
stockholders”  and  “Earnings distributions  to  limited  partnership  interests and  noncontrolling  interests,”  respectively,  in  our 
unaudited, condensed, consolidated statements of cash flows.

219 

replace the Company’s presentation of its GAAP financial results. However, management believes that these measures help 

provide investors with a clearer understanding of BGC’s financial performance and offer useful information to both 

management and investors regarding certain financial and business trends related to the Company’s financial condition and 

results of operations. Management believes that the GAAP and Adjusted Earnings measures of financial performance should 

be considered together.

The  term  “Adjusted  Earnings”  should  not  be  considered  in  isolation  or  as  an  alternative  to  GAAP  net  income  (loss).  The 
Company views Adjusted Earnings as a metric that is not indicative of liquidity, or the cash available to fund its operations, 
but  rather  as  a  performance  measure.  Pre-  and  post-tax  Adjusted  Earnings,  as  well  as  related  measures,  are  not  intended  to 
replace  the  Company’s  presentation  of  its  GAAP  financial  results.  However,  management  believes  that  these  measures  help 
provide  investors  with  a  clearer  understanding  of  BGC’s  financial  performance  and  offer  useful  information  to  both 
management  and  investors  regarding  certain  financial  and  business  trends  related  to  the  Company’s  financial  condition  and 
results of operations. Management believes that the GAAP and Adjusted Earnings measures of financial performance should 
be considered together.

For  more  information  regarding Adjusted  Earnings,  see  the  sections  of  this  document  and/or  in  the  Company’s  most  recent 
financial results press release titled “Reconciliation of GAAP Income (Loss) from Operations before Income Taxes to Adjusted 
Earnings  and  GAAP  Fully  Diluted  EPS  to  Post-Tax  Adjusted  EPS”,  including  the  related  footnotes,  for  details  about  how 
BGC’s non-GAAP results are reconciled to those under GAAP. 

Adjusted EBITDA Defined 

BGC also provides an additional non-GAAP financial performance measure, “Adjusted EBITDA”, which it defines as GAAP 
“Net income (loss) available to common stockholders”, adjusted to add back the following items: 

•

•

•

•

•

•

•

•

Provision (benefit) for income taxes;

Net income (loss) attributable to noncontrolling interest in subsidiaries;

Interest expense;

Fixed asset depreciation and intangible asset amortization;

Equity-based compensation and allocations of net income to limited partnership units and FPUs;

Impairment of long-lived assets;

(Gains) losses on equity method investments; and

Certain other non-cash GAAP items, such as non-cash charges of amortized rents incurred by the Company for its new
U.K. based headquarters.

The Company’s management believes that its Adjusted EBITDA measure is useful in evaluating BGC’s operating performance, 
because the calculation of this measure generally eliminates the effects of financing and income taxes and the accounting effects 
of capital spending and acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions. 
Such  items  may  vary  for  different companies  for  reasons  unrelated  to  overall  operating  performance. As  a  result, the  Company’s 
management  uses  this  measure  to  evaluate operating performance  and for  other  discretionary purposes.  BGC  believes  that Adjusted 
EBITDA is useful to investors to assist them in getting a more complete picture of the Company’s financial results and operations.  

Since BGC’s Adjusted EBITDA is not a recognized measurement under GAAP, investors should use this measure in addition to GAAP 
measures of net income when analyzing BGC’s operating performance. Because not all companies use identical EBITDA calculations, 
the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Furthermore, 
Adjusted  EBITDA is  not  intended  to  be a  measure  of free  cash  flow  or  GAAP cash  flow  from  operations  because  the  Company’s 
Adjusted EBITDA does not consider certain cash requirements, such as tax and debt service payments. 

For  more  information  regarding Adjusted  EBITDA,  see  the  section  of  this document  and/or in  the  Company’s most recent financial 
results press  release  titled  “Reconciliation  of  GAAP Net  Income  (Loss) Available  to  Common  Stockholders  to Adjusted  EBITDA”, 
including the footnotes to the same, for details about how BGC’s non-GAAP results are reconciled to those under GAAP. 

Timing of Outlook for Certain GAAP and Non-GAAP Items 

BGC  anticipates  providing  forward-looking  guidance  for  GAAP  revenues  and for  certain non-GAAP  measures  from  time  to  time. 
However, the Company does not anticipate providing an outlook for other GAAP results. This is because certain GAAP items, which are 
excluded from Adjusted Earnings and/or Adjusted EBITDA, are difficult to forecast with precision before the end of each period. The 
Company therefore  believes  that  it  is  not  possible  for  it  to have  the required  information  necessary  to  forecast GAAP results or  to 
quantitatively  reconcile  GAAP forecasts to  non-GAAP forecasts with  sufficient precision  without unreasonable efforts. For the same 
reasons, the Company is unable to address the probable significance of the unavailable information. The relevant items that are difficult to 
predict on a quarterly and/or annual basis with precision and may materially impact the Company’s GAAP results include, but are not 
limited, to the following: 

220 

•

Certain equity-based compensation charges that may be determined at the discretion of management throughout and up
to the period-end;

• Unusual, one-time, non-ordinary, or non-recurring items;
•

The  impact  of  gains  or  losses  on  certain  marketable  securities,  as  well  as  any  gains  or  losses  related  to  associated
mark-to- market movements and/or hedging. These items are calculated using period-end closing prices;
• Non-cash asset impairment charges, which are calculated and analyzed based on the period-end values of the

underlying assets. These amounts may not be known until after period-end; and

• Acquisitions, dispositions and/or resolutions of litigation, which are fluid and unpredictable in nature.

Liquidity Defined 

BGC may also use a non-GAAP measure called “liquidity”. The Company considers liquidity to be comprised of the sum of 
cash and cash equivalents, reverse repurchase agreements (if any), financial instruments owned, at fair value, less securities 
lent  out  in  securities  loaned  transactions  and  repurchase  agreements  (if  any).  The  Company  considers  liquidity  to  be  an 
important metric for determining the  amount of cash that is available or  that could be readily  available to the Company  on 
short notice.  

For  more  information  regarding  Liquidity, see  the  section  of  this  document  and/or  in  the  Company’s  most  recent financial 
results  press  release  titled  “Liquidity  Analysis”,  including  any  footnotes  to  the  same,  for  details  about  how BGC’s  non-
GAAP results are reconciled to those under GAAP.  

Constant Currency Defined 

BGC generates a significant amount  of its revenues in non-U.S. dollar denominated currencies, particularly in the euro  and 
pound sterling. In order to present a better comparison of the Company's revenues during the period, which exhibited highly 
volatile foreign exchange movements, BGC provides revenues year-over-year comparisons on a "Constant Currency" basis. 
BGC  uses  a  Constant  Currency  financial  metric  to  provide  a  better  comparison  of  the  Company's  underlying  operating 
performance  by  eliminating  the  impacts  of  foreign  currency  fluctuations  between  comparative  periods.  Since  BGC's 
consolidated financial statements are presented in U.S.  dollars, fluctuations in non-U.S. dollar denominated currencies have 
an  impact  on  the  Company's  GAAP  results.  The  Company's  Constant  Currency  metric,  which  is  a  non-GAAP  financial 
measure, assumes the foreign exchange rates used to determine the Company's comparative prior period revenues, apply to the 
current  period  revenues.  Constant  Currency  revenue  percentage  change  is  calculated  by  determining  the  change  in  current 
quarter non-GAAP Constant Currency revenues over prior period revenues. Non-GAAP Constant Currency revenues are total 
revenues  excluding  the  effect  of  foreign  exchange  rate  movements  and  are  calculated  by  remeasuring  and/or  translating 
current quarter revenues using  prior period exchange rates. BGC presents certain non-GAAP Constant Currency percentage 
changes in Constant Currency revenues as a supplementary  measure because it facilitates the comparison of the Company's 
core  operating results. This information  should  be  considered  in  addition  to,  and  not as  a  substitute  for,  results reported  in 
accordance with GAAP. 

221 

BGC PARTNERS, INC. 
RECONCILIATION OF GAAP INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES TO ADJUSTED 
EARNINGS AND GAAP FULLY DILUTED EPS TO POST-TAX ADJUSTED EPS  
(in thousands, except per share data) 
(unaudited) 

 GAAP income (loss) from operations before income taxes 
 Pre-tax adjustments: 

Compensation adjustments: 

Equity-based compensation and allocations of net income 
to limited partnership units and FPUs (1)
Other Compensation charges (2) 

Total Compensation adjustments 
 Non-Compensation adjustments: 
Amortization of intangibles (3) 
Acquisition related costs 
Impairment charges 
Other (4) 

Total Non-Compensation adjustments 
 Other income (losses), net adjustments: 
Losses (gains) on divestitures 
Fair value adjustment of investments (5) 
Other net (gains) losses (6) 

Total other income (losses), net adjustments 

Total pre-tax adjustments 

 Adjusted Earnings before noncontrolling interest in subsidiaries and 
taxes 

 GAAP net income (loss) available to common stockholders  
 Allocation of net income (loss) to noncontrolling interest in subsidiaries (7) 
 Total pre-tax adjustments (from above) 
 Income tax adjustment to reflect adjusted earnings taxes (8) 

 Post-tax adjusted earnings 

 Per Share Data 

FY 2022

FY 2021

$ 

97,451 

$ 

176,501 

251,071 

256,164 

(19,323) 

231,748 

208,751 

464,915 

15,728 
— 
4,224 
45,923 

65,875 

1,029 
(1,816) 
(21,172) 
(21,959) 

23,282 
1,649 
11,247 
29,804 

65,982 

(312,941) 
73 
(17,577) 
(330,445) 

$ 

$ 

275,664 

200,452 

373,115 

$ 

376,953 

$ 

48,712 
8,118 
275,664 
11,347 

124,007 
27,099 
200,452 
(1,150) 

$ 

343,841 

$ 

350,408 

 GAAP fully diluted earnings (loss) per share 

$ 

0.13 

$ 

0.32 

 Less: Allocations of net income (loss) to limited partnership units, 
   FPUs, and noncontrolling interest in subsidiaries, net of tax 

 Total pre-tax adjustments (from above) 

 Income tax adjustment to reflect adjusted earnings taxes 

 Post-tax adjusted earnings per share 

 Fully diluted weighted-average shares of common stock outstanding 

 Dividends declared per share of common stock 

 Dividends declared and paid per share of common stock 

(0.01)

0.55 

0.02 

(0.04)

0.37 
(0.00) 

$ 

$ 

$ 

0.69 

$ 

0.65 

499,414 

540,020 

0.04 

0.04 

$ 

$ 

0.04 

0.04 

Please see footnotes to this table on the next page. 

222 

 
 
 
 
 
 
 
 
 
 
 
(1) The components of equity-based compensation and allocations of net income to limited partnership units and FPUs are as
follows (in thousands):

Issuance of common stock and grants of exchangeability 

$ 

147,480 

$ 

128,107 

FY 2022

FY 2021

Allocations of net income 

LPU amortization 

RSU amortization 

13,298 

73,734 

16,559 

34,335 

78,596 

15,126 

Equity-based compensation and allocations of net income to limited 
partnership units and FPUs

$ 

251,071 

$ 

256,164 

(2) GAAP Expenses  for  the  full  year  2022  included  $2.9  million  of  certain  acquisition-re lated  compensation  expenses,  and
($23.8) million of other compensation related adjustments. GAAP Expenses in the full year 2022 also included $1.6 million of
employee  loan  forgiveness.  The  full  year  2021  included  certain  acquisition-related  compensation  expenses  of  $4.5  million,
certain  one-off  costs  associated  with  the  cost  reduction  program  of  $16.6  million,  and  $15.6  million  of  employee  loan
impairments related to the cost reduction program.

(3) Includes non-cash GAAP charges related to the amortization of intangibles with respect to acquisitions.

(4) GAAP expenses for the full year 2022 included $11.4 million of reserves in connection with unsettled trades and  receivables
with sanctioned Russian entities. GAAP expenses for the full year  2022 and 2021 also included Charity Day  Contributions of
$6.3 million and $7.2 million, respectively, as well as various other GAAP items. The above-referenced items are consistent with
BGC’s normal practice of excluding certain GAAP gains and charges from Adjusted Earnings that management believes do not
best reflect the ordinary results of the Company, including with respect to non-recurring or unusual gains or losses, as well as
resolutions of litigation.

(5) Includes a non-cash gain of $1.8 million and non-cash loss of ($0.1) million related to fair value adjustments of investments
held by BGC for the full years of 2022 and 2021, respectively.

(6) For the full years 2022 and 2021, includes non-cash gains of $10.9 million and $6.7 million, respectively, related to BGC's
investments accounted for under the equity method. The full year 2022 also included a net gain of $10.3 million related to other
recoveries and various other GAAP items, while the full year 2021  also included a net gain of $10.9 million related to various
other GAAP items.

(7) Primarily represents Cantor's pro-rata portion of net income.

(8) BGC's  GAAP  provision  (benefit)  for  income  taxes  is  calculated  based  on  an  annualized  methodology. The  Company's
GAAP  provision  for  income  taxes  was  $38.6  million  and  $23.0  million  for  the  full  years  2022  and  2021,  respectively. The
Company includes additional  tax-deductible items when calculating the provision for taxes with respect to  Adjusted Earnings
using  an  annualized  methodology. These  include  tax-deductions  related  to  equity-based  compensation  with  respect  to  limited
partnership unit exchange, employee loan amortization, and certain net-operating loss carryforwards. The non-GAAP provision
(benefit) for income taxes was adjusted by $11.3 million and ($1.2) million for the full years 2022 and 2021, respectively.  As a
and
respect 
for 
result, 
$24.2 million for the full years 2022 and 2021, respectively.

to  Adjusted  Earnings  was  $27.2  million 

the  provision 

taxes  with 

income 

Note: Certain numbers may not add due to rounding. 

223 

BGC PARTNERS, INC. 
FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT 
UNDER GAAP AND FOR ADJUSTED EARNINGS 
(in thousands) 
(unaudited) 

Common stock outstanding

Limited partnership units

Cantor units

Founding partner units

RSUs

Other

FY 2022 

FY 2021 

371,561 

379,215 

59,891 

57,139 

7,708 

1,913 

1,202 

90,490 

54,748 

10,118 

4,074 

1,375 

Fully diluted weighted-average share count under GAAP and Adjusted 
Earnings

499,414 

540,020 

Note: BGC’s fully diluted weighted-average share count under GAAP may differ from the fully diluted weighted-a verage share 
count for Adjusted Earnings in order to avoid anti-dilution in certain periods. 

BGC PARTNERS, INC. LIQUIDITY ANALYSIS 
(in thousands) 
(unaudited) 

December 31, 2022 

December 31, 2021 

Cash and cash equivalents

Financial instruments owned, at fair value

Total Liquidity

$ 

$ 

484,989    $ 

39,319 

524,308    $ 

553,598 

41,244 

594,842 

224 

BGC PARTNERS, INC. 
RECONCILIATION OF GAAP NET INCOME (LOSS) AVAILABLE TO 
COMMON STOCKHOLDERS TO ADJUSTED EBITDA  
(in thousands) 
(unaudited) 

GAAP net income (loss) available to common stockholders 

$ 

48,712 

$ 

124,007 

FY 2022

FY 2021

Add back: 

Provision (benefit) for income taxes 

Net income (loss) attributable to noncontrolling interest in subsidiaries (1) 

Interest expense 

Fixed asset depreciation and intangible asset amortization 

Impairment of long-lived assets 

Equity-based compensation and allocations of net income to limited partnership 
units and FPUs (2) 

(Gains) losses on equity method investments (3) 

Other non-cash GAAP expenses (4) 

38,584 

10,155 

57,932 

75,054 

4,224 

23,013 

29,481 

69,329 

81,874 

11,246 

251,071 

256,164 

(10,920) 

(6,772) 

11,364 

— 

Adjusted EBITDA 

$ 

486,176 

$ 

588,342 

(1) Primarily represents Cantor's pro-rata portion of net income.

(2) Represents  BGC  employees'  pro-rata  portion  of  net  income  and  non-cash  and  non-dilutive  charges  relating  to  equity-based
compensation. See Footnote 1 to the table titled “Reconciliation of GAAP Income (Loss) from Operations before Income Taxes to 
Adjusted Earnings and GAAP Fully Diluted EPS to Post-Tax Adjusted EPS” for more information.

(3) For the full years 2022 and 2021, includes non-cash gains of $10.8 million and $6.7 million, respectively, related to BGC's
investments accounted for under the equity method.

(4) The full year  of 2022  includes $11.4  million of  non-cash  reserves  in  connection with  unsettled  trades  and  receivables  with
sanctioned Russian entities.

225 

This page intentionally left blank

CORPORATE INFORMATION

BGC GROUP, INC.  
BOARD OF DIRECTORS 
Howard W. Lutnick
Chairman of the Board of Directors  
and Chief Executive Officer

William D. Addas
Director

Linda A. Bell
Director

Arthur U. Mbanefo 
Director

David P. Richards
Director

BGC GROUP, INC.   
MANAGEMENT
Howard W. Lutnick
Chairman of the Board of Directors  
and Chief Executive Officer

Stephen M. Merkel 
Executive Vice President and  
General Counsel

Sean A. Windeatt 
Chief Operating Officer and  
Executive Vice President 

Jason W. Hauf
Chief Financial Officer and 
Executive Vice President

Caroline A. Koster 
Senior Managing Director, Chief Counsel, 
Securities and Corporate Governance,  
General Counsel, ESG and Corporate 
Secretary 

CORPORATE HEADQUARTERS

499 Park Avenue
New York, NY 10022
T: +1 646 346 7000

INTERNATIONAL HEADQUARTERS
Five Churchill Place
Canary Wharf
London E14 5HU
United Kingdom
T: +44 20 7894 7700

INVESTOR RELATIONS & 
REQUESTS FOR ANNUAL REPORT 
ON FORM 10-K
Jason Chryssicas
Head of Investor Relations 

Copies of the Company’s Annual Report 
on Form 10-K, along with news releases, 
other recent SEC filings, and general stock 
information are available without charge 
by going to ir.bgcg.com, or by calling 
Investor Relations at +1 212 610 2426, or 
by writing to Investor Relations at BGC 
Group’s corporate headquarters.

LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
101 Park Avenue
New York, NY 10178-0060

INDEPENDENT REGISTERED 
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
One Manhattan West
New York, NY 10001

STOCK LISTING
NASDAQ: BGC

TRANSFER AGENT
Equiniti Trust Company
6201 15th Avenue
Brooklyn, NY 11219
T: +1 800 468 9716
www.equiniti.com

ABOUT BGC GROUP, INC.
BGC Group, Inc. (“BGC”) is a leading 
global brokerage and financial technology 
company. BGC, through its affiliates, 
specializes in the brokerage of a broad 
range of products, including Fixed Income 
(Rates and Credit), Foreign Exchange, 
Equities, Energy and Commodities, 
Shipping, and Futures. BGC, through its 
affiliates, also provides a broad range of 
services, including: trade execution, 
brokerage, clearing, trade compression, 
post-trade, information, and other back-
office services to a broad range of 
financial and non-financial institutions. 
Through its brands, including Fenics®, 
FMX™, FMX Futures Exchange™, Fenics 
Markets Xchange™, Fenics Digital™, Fenics 
UST™, Fenics FX™, Fenics Repo™, Fenics 
Direct™, Fenics MID™, Fenics Market 
Data™, Fenics GO™, Fenics 
PortfolioMatch™, BGC®, BGC Trader™, 
kACE2™, and Lucera®, BGC offers financial 
technology solutions, market data, and 
analytics across a broad range of financial 
instruments and markets. BGC, BGC 
Group, BGC Partners, BGC Trader, GFI, GFI 
Ginga, CreditMatch, Fenics, Fenics.com, 
FMX, Sunrise Brokers, Poten & Partners, 
RP Martin, kACE2, Capitalab, Swaptioniser, 
CBID, Caventor, LumeMarkets and Lucera 
are trademarks/service marks and/or 
registered trademarks/service marks of 
BGC and/or its affiliates. 

BGC’s customers include many of the 
world’s largest banks, broker-dealers, 
investment banks, trading firms, hedge 
funds, governments, corporations, and 
investment firms. BGC’s Class A common 
stock trades on the Nasdaq Global Select 
Market under the ticker symbol “BGC”. 
BGC is led by Chairman of the Board and 
Chief Executive Officer Howard W. 
Lutnick. For more information, please visit 
http://www.bgcg.com. You can also follow 
BGC at https://twitter.com/bgcgroupinc, 
https://www.linkedin.com/company/bgc_
group and/or http://ir.bgcg.com.

 
 
 
 
 
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BGCG.COM