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
MarketAxess and DirectBooks partner, MSCI debuts AI connectors, and more
The Waters Cooler: Canton’s consortium advances cross-border collateral mobility, TRG Screen launches a market data ROI calculator, and Trading Technologies provides direct connectivity to India in this week’s news roundup.
24X files for exemption from SIP rule to take part in overnight trading
The exchange, which began operating in mid-October last year, plans to offer the overnight session in the second half of 2026.
HSBC gives 31,000 engineers an AI coding assistant
CEO Georges Elhedery said the bank is re-engineering its end-to-end processes and enhancing customer experiences with new AI tools.
Bloomberg Terminal’s agentic play shows rapid change in trading tech
Waters Wrap: The data giant’s conversational AI interface might seem novel, but others say having one is becoming a bare minimum in the world of trading technology.
AllianceBernstein enlists SimCorp, BMLL and Features Analytics team up, and more
The Waters Cooler: Mondrian chooses FundGuard to tool up, prediction markets entice options traders, and Synechron and Cognition announce an AI engineering agreement in this week’s news roundup.
CompatibL’s unique AI strategy pays dividends
CompatibL’s unique approach to AI and how its research around cognitive bias and behavioral psychology have improved the reliability of its AI-based applications.
Market participants voice concerns as landmark EU AI Act deadline approaches
Come August, the EU’s AI Act will start to sink its teeth into Europe. Despite the short window, financial firms are still wondering how best to comply.
Ram AI’s quest to build an agentic multi-strat
The Swiss fund already runs an artificial intelligence model factory and a team of agentic credit analysts.