BGC Partners
BGC Partners is an American global financial services company based in New York City. Originally formed as part of the larger Cantor Fitzgerald organization, BGC Partners became its own entity in 2004.
History
1945–1990
In 1945, Bernard Gerald Cantor founded a brokerage service for inter-dealer fixed-income markets. The resulting company was B.G. Cantor and Company, which later became Cantor Fitzgerald.In 1965 Cantor Fitzgerald established an Institutional Equities Sales and Trading Division, which offers large block trading to asset managers, pension funds, and portfolio managers. In 1983, Cantor Fitzgerald became the first firm to offer worldwide screen brokerage services in US Government securities.
1991–2001
In 1991, Howard Lutnick was named president of Cantor Fitzgerald, after having worked at the firm for the previous eight years. Lutnick placed a new emphasis on technological innovation at the company, and in 1996 led the development of eSpeed, which went public in 1999.The September 11, 2001 attacks claimed 658 employees of Cantor Fitzgerald and eSpeed, whose headquarters were in the World Trade Center. In response to the attacks, BGC Partners and Cantor Fitzgerald pledged to donate 25% of their profits to families of deceased employees.
2004–present
BGC Partners was formed in 2004 when Cantor Fitzgerald spun out its voice brokerage business. The initials BGC standing for that company's founder, Bernard Gerald Cantor.In April 2005, BGC Partners LP merged with Maxcor Financial Group Inc. to form BGC Partners.
In September 2005, BGC Partners held their first annual Charity Day event. The event featured Harry Carson, Boomer Esiason, and Mariano Rivera and raised money for the Cantor Fitzgerald Relief Fund among other charities.
In 2007, BGC Partners opened an office in Seoul, South Korea and became the first inter-dealer broker to open an office in Istanbul, Turkey.
In 2008, BGC Partners merged with eSpeed and becomes BGC Partners Inc.
In November 2009, BGC Partners won Asia Risk Magazine's first ever award for Technology Development.
On April 1, 2013, NASDAQ OMX Group agreed to acquire an electronic Treasurys marketplace from brokerage firm BGC Partners Inc. in a cash-and-stock deal valued at as much as $1.23 billion. The sale caused BGC to see the biggest gain in stock prices since going public in December 1999. The assets sold to Nasdaq in this deal represented $100 million in sales in 2012, less than 6% of BGC's overall total.
On October 2, 2013 BGC's subsidiary BGC Derivative Markets, L.P. launched operations as a Swap Execution Facility, consistent with the derivatives trading regulations under the Dodd-Frank Act. This followed BGC receiving CFTC approval to operate a Swap Execution Facility in September 2013.
In February 2017 BGC bought London based Lloyd's insurance broker, Besso Ltd.
In January 2019 Ed Broking Ltd, another London headquartered Lloyd's insurance broker was added to the Group.
Global Charity Day
BGC Charity Day was founded in 2005 to raise money for the Cantor Fitzgerald Relief Fund and other nonprofits as a way to honor the victims of 9/11. Each year on or near September 11, BGC Charity Day brings in celebrities, athletes and politicians alike to man their phones and speak with clients, with all revenue from the day being donated to charities of choice. The Charity Day event has also spread beyond New York to all of BGC Partners' international offices.Year | Funds Raised | Charities Benefitted | Attendees |
2005 | $3.9 | Cantor Foundation, CLIC Sargent, The Shane Warne Foundation | Boomer Esiason, Harry Carson, Mariano Rivera |
2006 | $5 | Safe at Home Foundation, Daniel Pitino Foundation, Happy Hearts, Minority Athletes Networking ETC, Marine Corporation Foundation for Children | Phil Simms, Rick Pitino, Petra Němcová, Joe Torre |
2007 | $6 | Books for Kids Project FIND, Blythedale Children's Hospital, The Cancer Research Institute, NARSAD, Project Find, Wounded Warrior Project | Eli Manning, Tony Sirico, Whoopi Goldberg, Yogi Berra, Bernie Williams, Boomer Esiason |
2008 | $8 | Baby Buggy, The Boomer Esiason Foundation, The Children's Institute, Ice Hockey in Harlem, Jubilee Center, Mercy Center, National Downl Syndrome Society, Project Find, Quality Services for the Autism Community, The Valerie Fund, Wounded Warrior Project | Tiki Barber, Dr. Ruth Westheimer, Michael Bloomberg, Steve Buscemi, Donald Trump |
2009 | $10 | The Bone Marrow Foundation, The Boomer Esiason Foundation, Childhelp, The Children's Institute, Coast to Coast Against Cancer, Friends of the Fighting 69th, Garden of Dreams, Harlem RBI, Jubilee Center, Mercy Center, Quality Services for the Autism Community, The Valerie Fund, Wounded Warrior Project | Lady Gaga, Mika Brzezinski, Joe Scarborough, Natalie Morales |
2010 | $10 | Baby Buggy, Bone Marrow Foundation, Boomer Esiason Foundation, Building Homes for Heroes, Childhelp, Eli Manning Foundation, The Felix Organization, Foundation for Sight and Sound, Friends of the Fighting 69th, Garden of Dreams, Harlem RBI, Jubilee Center, Level the Field, Mercy Center, Solving Kids Cancer, Team KJ, Tuesday's Children, Wounded Warrior Project, 52nd Street Project. | Hilary Duff, Edie Falco, Gabrielle Union, Mark Ruffalo, Jon Voight, Billy Crudup |
2011 | $12 | Alliance for Lupus Research, AmeriCares, Boomer Esiason Foundation, Building Homes for Heroes, Felix Organization, Garden of Dreams, Happy Hearts, Harlem RBI, Intrepid Sea, Air and Space, Make-a-Wish Foundation, Services for the Underserved, Solving Kids Cancer, St. Christopher's, Tony Alt Foundation, USTA Serves, Wheelchair Sports Federation, Worldwide Orphans Foundation, Wounded Warrior Project, Youth Consultation Services | Ronnie Wood, Prince Harry, Cherie Blair, Bill Clinton, Carmelo Anthony, Eli Manning, Henrik Lundqvist, Ike Davis, John McEnroe, Mark Sanchez, Rex Ryan, George W. Bush, Russell Simmons, Ben Stiller |
2012 | $12 | Alliance for Lupus Research, Boomer Esiason Foundation, Building Homes for Heroes, The Felix Organization, Garden of Dreams, Solving Kids' Cancer, St. Christopher's, Inc., The Tony Alt Memorial Foundation, Wounded Warrior Project, Youth Consultation Service, The 52nd Street Project, The Allan Houston Legacy Foundation | Susan Sarandon, Edie Falco, Curtis "50 Cent" Jackson, Rudy Giuliani, Carmelo Anthony, Mike Woodson, John McEnroe, Andrew Garfield, Carol Alt, Eli Manning, Rex Ryan, Mark Sanchez, Mike Tannenbaum |
2013 | $12 | The 52nd Street Project, The Allan Houston Legacy Foundation, Alliance for Lupus Research, Baby Buggy, Boomer Esiason Foundation, Boys Hope Girls Hope of New York, Building Homes for Heroes, Carmelo Anthony Foundation, Catalog for Giving of NYC, Emergency Children's Help Organization, G-Unity Foundation, Garden of Dreams Foundation, Game Knights, Harlem RBI, Jason Kidd Foundation, Only Make Believe, Point of Hope, Self Help Africa, Solving Kids' Cancer, St. Mary's Healthcare System for Children, Todd Ouida Children's Foundation, Tony Alt Memorial Foundation, Wounded Warrior Project, Generation Rescue, The Noreen Fraser Foundation | Prince Harry and Prince William, Zachary Quinto, Curtis “50 Cent” Jackson, Sean "Diddy" Combs, Caitlyn Jenner,Julianne Moore, Billy Crystal, Tony Sirico, Bobby Cannavale, Edie Falco, Jenny McCarthy, Boomer Esiason, Craig Carton, Carmelo Anthony, Metta World Peace, Jason Kidd and Deron Williams, Mark Teixeira, Ryan Lochte, Nick Cannon, Carol Alt and Lily Aldridge. |
2014 | $12 | Harlem RBI, Sparks, Liya Kebede Foundation, Christina Noble Children's Foundation, The Orphanage Trust, Bali Kids, The Sumba Foundation, Marie Curie Cancer Care, WellChild, The Carmelo Anthony Foundation, The Catalog for Giving of New York City, St. Joseph Home, Dallagio Foundation, Cantor Fitzgerald Relief Fund, ChildFund Korea, Duang Prateep Foundation, Futaba Infant Home, CHICKS, Place2Be, Starlight, Anthony Nolan, Haven House Children's Hospice, Nordoff Robins, Point of Hope, The White Knight Foundation | Allan Houston, Gerry Cooney, John Franco, Tim Hardaway Jr., Curtis “50 Cent” Jackson, Jenny McCarthy, John Turturro, Nick Jonas, Rooney Mara, Vincent Pastore, Linda Evangelista, Kelly Bensimon, Amanda Holden, Barbara Windsor, Clive Owen, Damian Lewis, David Gandy, Kirsty Gallacher, Sean Bean, Terence Stamp, Boris Becker, David Gower, Manu Tuilagi, Matt Dawson, Sir Jackie Stewart |
2015 | $12 | Wounded Warrior Project, Beyond Social Services, Seeing is Believing, SAVH, Sweet Louise, 52nd Street Project, The New York Police & Fire Widow's and Children's Benefit Fund, The Henrik, Lundqvist Foundation, Boys’ Town, Breast Cancer Care, Elephant Family, Mencap, Reverse rett, Sur Les Bancs de l’Ecole, Stroke Association, Great Ormand Street Hospital Charity, Haven House Children's Hospice, Jamie Oliver Food Foundation, Boomer Esiason Foundation, Friends of Firefighters, Kookaburra Kids, Leukaemia Foundation, Maggie's Cancer Caring Centre, NSPCC, Kevin Pietersen Foundation | AnnaLynne McCord, AnnaSophia Robb, Bridget Moynahan, Kevin Kline, Margot Robbie, Pamela Anderson, Steve Buscemi, Boomer Esiason, Jenny McCarthy, Henrik Lundqvist, Woody Johnson, Sarah, Duchess of York, Amanda Donohoe, Joanna Lumley, Samuel L Jackson, Tom Hardy, Chris Tarrant, Jamie Oliver, Piers Morgan, Darren Gough, Kevin Pietersen, Lewis Moody, Jodie Kidd, The Countess of Wessex |
2016 | $12 | Building Homes for Heroes, Beyond Social Services, Les Voilas, SAVH, Sweet Louise, 52nd Street Project, The New York Police & Fire Widow's and Children's Benefit Fund, The Henrik, A21, Boys’ Town, Breast Cancer Care, Action Medical Research, Mencap, Children in Crisis, DKMS, Sur Les Bancs de l’Ecole, Stroke Association, Great Ormond Street Hospital Charity, Haven House Children's Hospice, Garden of Dreams, Boomer Esiason Foundation, Friends of Firefighters, Kookaburra Kids, Leukaemia Foundation, Maggie's Cancer Caring Centre, NSPCC, Dikembe Mutombo Foundation | Robert De Niro, Steve Buscemi, Bridget Moynahan, Carla Gugino, Malin Ackerman, Edie Falco, Darryl “DMC” McDaniels, Vincent Pastore, AnnaSophia Robb, Juliana Margulies, Rosie Perez, Uzo Aduba, Tony Danza, Peyton Manning, Eli Manning, Walt Frazier, Chris Snee, Dikembe Mutombo, Dwight Gooden, Jason Pierre-Paul, Justin Pugh, Maria Sharapova, Matt Harvey, Shaquille O’Neal, Shaun O'Hara, Steve Weatherford, Woody Johnson, CC Sabathia, Michael Massimino, Daniel Nigro, Willis Reed, Gerry Cooney, Joe Namath, Allan Houston, Constance Jablonski, Lily Aldridge, Damaris Lewis |
Philanthropy
Hurricane Sandy relief
When Hurricane Sandy hit the New York and New Jersey coasts in October 2012, damages quickly totaled in the billions, with thousands of family homes completely destroyed along beach properties. A Hurricane Sandy Family Relief Program was established and funded largely by BGC Partners and Cantor Fitgerald's Charity Day efforts. $10 million in the form of $1,000 debit cards were handed out to families whose homes were damaged in the storm. The eligible families were identified through nineteen schools located in areas hardest hit by the storm.Cantor Fitzgerald Slacks On 9/11 Pledge, But Promises $10 Million To Sandy Relief
Oklahoma Tornado relief
On May 20, 2013, a tornado struck Moore, Oklahoma, killing 24 people and injuring hundreds more. Two days later, Howard Lutnick appeared on the Piers Morgan Live TV show and pledged to donate $2 million to families affected by the tornado. The donation was given out in the form of $1,000 debit cards given out to area families.Management and directors
- Howard Lutnick, chairman and chief executive officer
- Shaun D. Lynn, president
- Stephen Merkel, executive vice president, general counsel and secretary
- Sean Windeatt, chief operating officer
- Graham Sadler, chief financial officer
- Eric Hirschhorn, chief information officer
Offices
North America
- Chicago - 222 West Adams, Suite 1900, Suite 1900
- Mexico City Vasco de Quiroga 2121 Santa Fe CDMX
- New York City - 499 Park Avenue, New York, NY 10022
- New York City - 1 Seaport Plaza / 199 Water Street, 19th Floor, New York, NY 10038
- Toronto - 181 University Avenue, Suite 1500, Toronto ON M5H 3M7
South America
- Rio de Janeiro - Av. Almirante Barroso, 52 - 23rd Floor, Centro, Rio de Janeiro, RJ - 20031-000
- São Paulo - Av. Brigadeiro Faria Lima, 3144 - 7th Floor, Jardim Paulistano, São Paulo, SP - 01451-000
Europe
- Copenhagen - Bremerholm 1, 2nd floor, DK 1069 Copenhagen
- Hamburg - Hohe Bleichen 11, 20354 Hamburg
- Istanbul - Kanyon Ofis Blogu, Buyukdere cad.No:185, Kat:13 Levent/Istanbul
- London - 5 Churchill Place, Canary Wharf, London E14 5RD
- London - 52 Leadenhall St, London EC3A 2EB
- London - 8-11 Crescent, London, EC3N 2LY
- Moscow - 4A floor, rooms 5-9, Sector A, Smolenskaya Square, 3, 121099, Moscow City, Russia
- Nyon - Alfred Cortot 4, CH-1260 Nyon
- Paris - 15-17 Rue Vivienne, 75002 Paris
Asia
- Beijing - Unit Room 506, 5/F South Block Tower C, No.2 Kexueyuan South Road, Haidian District, Beijing 100190
- Dubai - Al Fattan Currency House, Tower 2, Level 12, DIFC, PO Box 482030, Dubai
- Hong Kong - Suite 6402-08, 64/F, Two International Finance Centre, 8 Finance Street, Central, Hong Kong
- Seoul - 10/F Seoul Finance Center, 84 Taepyungro 1-ka, Chung-ku, Seoul, South Korea 100-768
- Singapore - 1 Temasek Avenue #22-01, Millenia Tower, Singapore 039192
- Tokyo - Akasaka Biz Tower 38F, 5-3-1 Akasaka, Minato-ku, Tokyo 107-6338
Australia
- Sydney - Level 24, 363 George Street, Sydney NSW 2000
Africa
- Johannesburg - Selborne House, Fourways Golf Park, Roos Street, Fourways, 2191
Associated businesses
- Aqua Equities, joint venture with Cantor spun out in 2007
- Aurel BGC, French investment subsidiary formed in 2008
- BGC Liquidez, Brazilian subsidiary acquired in 2009
- Freedom International Brokerage, Canadian affiliate
- MINT Partners, global brokerage acquired in 2010
- Newmark Knight Frank, global real estate services. In October 2011, BGC Partners acquired Newmark Knight Frank. Six months later, in April 2012, BGC Partners also bought commercial real estate firm, Grubb & Ellis.
- BGC Radix Energy, global energy traders, acquired in 2008.
- Smith Mack, a commercial real estate firm, acquired in January 2013.
- Frederick Ross Co., a real estate brokerage firm, acquired in January 2013.
- Sterling International Brokers Limited, a currency broker, acquired in February 2013.
- RP Martin, UK broker, acquired in 2014.s
- GFI Group, a New York-based leading intermediary and provider of trading technologies and support services to the global OTC and listed markets, acquired in January 2016. The group also included Kyte broking, Latium capital.
- Sunrise Brokers, an equity derivatives broker, acquired in December 2016.
- Ed Broking Group, a global reinsurance, wholesale and specialty insurance broker with their German marine insurance arm Junge & Co. Versicherungsmakler, acquired in 2019
Controversy
Also in May 2012 a story was published by the New York Daily News under the headline 'Cantor Fitzgerald VP was boss from hell, secretary says in suit' which reported on a lawsuit brought against the company by former employee Crystal Mitchell. Mitchell worked as an executive assistant to Michael Lampert at BGC USA, an affiliate of Cantor Fitzgerald, in March 2011. According to the suit filed by her lawyer David Harrison, her boss once threw a cup of tea at her because she hadn't removed the teabag. "The boiling hot liquid spilled on , burning her stomach and upper leg, and staining her clothes.” the suit said, adding that “Almost daily, Lampert humiliated and degraded Mitchell, yelling at her as if she was inferior and calling her: ‘stupid,’ ‘moron,’ ‘the dumbest person I ever met,’ ‘incompetent,’ and ‘idiot,’ ”. Elsewhere in the discrimination suit, she says she complained about the treatment to human resource managers — but her pleas for help were ignored.
In October 2012 the New York Post ran an article entitled 'Cantor, Moody's Dogfight' reporting on a 'feud' between the company and Moody's Investors Service. The article stated that Cantor Fitzgerald and Moody's had been feuding for months over differing opinions of Cantor's profitability. In July 2012 Cantor terminated its relationship with Moody's. In October 2012 the ratings agency dropped BGC's status to Ba2. In December 2012 Bloomberg reported that S&P cut Cantor to BBB- and left the rating for BGC Partners Inc., the company’s interdealer broker affiliate, unchanged at the lowest investment grade.
Two articles appeared in January 2013 written by Bloomberg journalist Zeke Faux. The first, dated January 8th was titled 'Cantor May Face Another Ratings Cut as Fitch Cites Slump' and quoted Mohak Rao, a Fitch analyst. Rao wrote in a report "Cantor’s institutional business and BGC’s financial brokerage business will remain challenged in the medium term because of lower trading volume”.
Two days later Zeke Faux published a second, much longer, article titled 'Cantor Growth Plan Sputters as 41% of Touted Hires Exit' citing that 41% of the 158 traders and bankers whose hirings Cantor announced in news releases since 2009 had left, according to industry records.