BGC Partners, Inc. (NASDAQ: BGCP) (“BGC”), a leading global intermediary to the wholesale financial markets, today executed its first fully electronic Dollar Interest Rate Option (IRO) trade. The transaction was carried out using the Volume Match tool on BGC’s proprietary, hybrid execution platform, BGC™ Trader.

The BGC Trader platform offers customers the option of voice or electronic execution for over 50 BGC products across Rates, Credit, Equity, Commodity and Foreign Exchange products globally. Volume Match is an award-winning, auction-style tool that enables fully-electronic transaction of asset classes including credit default swaps, foreign exchange options and European interest rate swaps (IRS).

Rob Sutton, Managing Director, Global Head of USD IRS and Head of IRO, North America, said: “BGC’s leading voice franchise is supported by our world-class technology platform and we have seen the significant success of Volume Match across a range of products since its launch in 2009. By offering our customers the option of transacting dollar IROs electronically via Volume Match we will further increase our global liquidity pool and electronic presence within the Rates market.”

Clive England, Director, Head of e-Commerce, Americas, added: “BGC Trader is fully flexible, enabling the rapid and seamless addition of new products to the platform, driven by customer demand. Over the past 18 months we have also implemented the Volume Match tool within BGC Trader for a growing number of products, to offer customers a wide range of execution options depending on their needs. This, alongside our suite of pre- and post-trade technology offerings, provides customers with comprehensive trade services to support BGC’s expanding, global voice brokerage network.

US securities products and services are offered by BGC Financial, L.P. member SIPC and FINRA. A subsidiary of BGC Partners, Inc.

About BGC™ Trader

BGC Trader is BGC’s proprietary multi-asset, integrated voice and electronic price execution platform for the inter-bank and broker community. Introduced through extensive customer feedback, BGC Trader offers a feature-filled, flexible and easy to use front-end. Users benefit from thin-client technology, which allows improved delivery with managed product updates and enhancements, speed, availability and resilience.

BGC Trader is fully integrated with a choice of either voice or electronic access to support multiple products including:

  • Fixed income
  • European corporate cash
  • FX Options
  • Credit default swaps
  • i-Traxx

BGC’s platform is regulated as a multilateral trading facility (MTF) by the FSA and adheres to the EU’s Markets in Financial Instruments Directive.

About BGC™ Volume Match

Volume Match is an application within the BGC Trader platform. Volume Match is an anonymous auction-style trading system, which provides customers with efficient price discovery, order management and execution in credit and FX derivative products. It is run multiple times per day for multiple products depending on market demand:
  • At specific times and set price levels the market can execute trades anonymously
  • Volume Match runs for approximately 5 minutes, several times per day
  • At the conclusion of the Volume Match, only those participating will be aware of their transactions
  • All unfilled interest remains undisclosed to the marketplace – which aims to remove execution risk

In some markets Volume Match offers an additional price discovery tool allowing traders themselves to post two-way prices. With this additional step, the mid-price is established by the market rather than being inputted by the broker. This offers significantly increased price transparency and efficiency of execution in certain markets.

Volume Match is deployed using Citrix, and is hosted by BGC.

About BGC Partners, Inc.

BGC Partners is a leading global intermediary to the wholesale financial markets, specializing in the brokering of a broad range of financial products, including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commodities, futures, structured products and other instruments. BGC Partners also provides a full range of services, including trade execution, broker-dealer services, clearing, processing, information, and other back office services to a broad range of financial and non-financial institutions. BGC Partners’ integrated platform is designed to provide flexibility to customers with regard to price discovery, execution and processing of transactions, and enables them to use voice, hybrid, or, where available, fully electronic brokerage services in connection with transactions executed either OTC or through an exchange. Through its eSpeed and BGC Trader brands, BGC Partners uses its proprietary, built, and paid for technology to operate multiple buyer, multiple seller real-time electronic marketplaces for the world’s most liquid capital markets.

The Company’s pioneering suite of tools provides end-to-end transaction solutions for the purchase and sale of financial products over its global private network or via the Internet. BGC Partners’ neutral platform, reliable network, straight-through processing and superior products make it the trusted source for electronic trading for the world's largest financial firms. Through its BGCantor Market Data brand, the Company also offers globally distributed and innovative market data and analysis products for numerous financial instruments and markets. BGC Partners’ customers include many of the world’s largest banks, broker-dealers, investment banks, trading firms, hedge funds, governments and investment firms. BGC’s unique partnership structure and extensive employee ownership create a distinctive competitive advantage among its peers. Named after fixed income trading innovator B. Gerald Cantor, BGC Partners has offices in 20 locations, in New York and London, as well as in Beijing, Chicago, Copenhagen, Hong Kong, Istanbul, Johannesburg, Mexico City, Moscow, Nyon, Paris, Rio de Janeiro, São Paulo, Sarasota, Seoul, Singapore, Sydney, Tokyo and Toronto. For more information, visit http://www.bgcpartners.com.

Discussion of Forward-Looking Statements by BGC Partners

Statements in this press release regarding BGC Partners’ business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see BGC Partners’ Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors set forth in our public filings which we incorporate by reference, including our Form 10-K for the year ended December 31, 2009, as filed with the SEC on March 16, 2010 and any updates to such risk factors contained in subsequent 10-Q filings.

Copyright Business Wire 2010