BGC Partners, Inc. (NASDAQ: BGCP) a leading global intermediary to the wholesale financial markets, today launched the first electronic auction-style trading platform for US Dollar-denominated Interest Rate Swaps (IRS), available to most of its global large bank and dealer customers.

BGC is also pleased to announce its launch of fully electronic trading in Singapore dollar IRS at the end of October. This follows the launch on August 31, 2010 of BGC Trader IRS for Euro Interest Rate Swaps, and last month of dollar Interest Rate Options on Volume Match.

Rob Sutton, Managing Director, Global Head of USD IRS and Head of IRO, North America, said: “The dollar IRS market is the second largest single-currency Swaps market in the world and is traded widely on a global basis. By introducing Volume Match as an execution option for our customers, we are providing them with greater flexibility to trade either via voice or electronically according to their preference. Based on the significant success of Volume Match and BGC Trader in other interest rate derivative products – with approximately US$70 billion in notional volume traded since the end of August - we believe that Volume Match for dollar IRS will further increase volumes in this highly liquid market.”

Phil Norton, Executive Managing Director, Global Head of e-Commerce, commented: “We continue to build out our technology platform for fully electronic trading and introduce new products based on customer demand for automation. Over a quarter of our global desks now offer fully electronic trading – more than double the number of desks that were live 18 months ago. Volume Match has proved to be very popular with customers due to the simplicity of the interface, the greater efficiencies offered by the system and its ability to stimulate a market even on relatively quiet trading days.”

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 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.

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