BGC Partners Expect High Revenues for Q1 2020
Global brokerage BGC Partners updated its financial outlook for the first quarter of 2020 yesterday. The announcement was somewhat expected, amid uncertainty of the effects of the coronavirus, although high volatility is bound to affect global firms like this.
March was highly volatile, according to the financial services company. Significant volumes spread across numerous global instruments.
Thanks to the effort of its employees and clients, the company now believes it will see better performance than expected.
For Q1 of fiscal 2020, the company expects to achieve revenues ranging from $540 to $580 million. The figure’s minimum was around what was achieved in a yearly comparison, which was $544.8 million.
The announcement was ahead of the actual release of its first-quarter 2020 financial results before market open on May 5.
Chairman and CEO of BGC Howard W. Lutnik said the company is working “closer than ever” with its associates. The brokerage will continue to adapt as conditions change.
BGC Partners claim its balance sheet and liquidity are still strong.
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BGC’s Not So Sparkling Record
Despite good figures from BGC Partners, investors should still be careful with partnering with brokers at such a volatile market. The firm was ordered to pay a civil money penalty and cease and desist from violating watchdog regulations.
Namely, the US Commodity Futures Trading Commission fined its voice brokerage firm $3 million to settle charges. CFTC claims the company failed to comply with regulations of supervision, reporting, and recordkeeping in the span of five years.
The fine came barely a month after two unites of BGC had to pay $25 million to forex market charges.
CFTC claimed that BGC didn’t provide a supervisory system that caters to its traditional and block trading futures brokerage business. The firm also lacked competent processes in creation, maintenance, and retention of its data.
The penalty was part of a long-running regulatory probe from the CFTC after it first had to settle for fraud.