BGC Plans to Sell Trayport
Two months after purchasing GFI, BGC announces it will sell Trayport in its Q1 financial earning report.
Cantor Fitzgerald will assist in the sale of Trayport, chairman and CEO Howard Lutnick said in the report.
"We expect numerous parties to be interested in acquiring this business at a valuation that reflects its high margins, growth rate, leading technology, and strategic importance in the global energy and commodities markets," Lutnick said. "We anticipate completing a transaction before the end of 2015. The gain from a sale of Trayport will be excluded from distributable earnings."
As for the rest of GFI, Lutnick said the front office operations of both firms will remain separately branded, but the support functions, technology and infrastructure have already begun to be integrated. Lutnick said by Q1 of 2016 the expenses of network infrastructure, telephone lines, datacenters, vendors, disaster recovery and interest expense will be reduced by at least $50 million a year.
"We also expect to increase productivity per broker and to continue converting voice and hybrid broking to higher margin fully electronic trading, all of which should lead to increased revenues and profitability," the CEO added. "By freeing up duplicative capital set aside for regulatory and clearing purposes, we will also be able to use our balance sheet more efficiently."
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Jump Trading spinoff Pyth enters institutional market data
The data oracle has introduced Pyth Pro as it seeks to compete with the traditional players in market data more directly.
Treasury market urged to beef up operational resilience plans
NY Fed panel warns about impact of AI and reliance on critical third parties.
Waters Wavelength Ep. 339: Northern Trust Asset Management’s Jan Rohof
This week, Jan Rohof from Northern Trust Asset Management joins to discuss how asset managers and quants get more context from data.
EY and Microsoft partner to bring agentic AI to risk management
The two firms are part of a deal to bring agentic AI processes to core operations like lending, servicing and risk, starting at Eurobank.
T. Rowe taps Genesis, Cusip lawsuit, FanDuel-CME tie-up, and more
The Waters Cooler: Tokenization and private markets, EuroCTP-BMLL, StateStreet-PriceStats, and more.
Tokenization & Private Markets: Where mixed data finds a needed partner?
Waters Wrap: Reading the tea leaves, Anthony predicts BlackRock’s Preqin deal, Securitize’s IPO, and numerous public comments from industry leaders are just the tip of the iceberg.
Fintech proposes borrowing AI standard from autonomous cars
Amid the rapidly growing use of financial AI, startup Martini.ai urges industry practitioners to coalesce around a common language to measure their progress and understand their own projects and capabilities.
Waters Wavelength Ep. 338: BBH’s Mike McGovern
This week, Mike McGovern of Brown Brothers Harriman talks with Tony about the importance of open architectures and the need for better data management in this increasingly AI-driven world.