BGC Partners Rebrands as BGC Group and Transforms to C-Corp

<p>BGC
Partners, the global brokerage and financial technology company, has announced
the completion of its corporate conversion to a full C-Corporation. As part of
this transition, the company will now be known as <a href="https://www.financemagnates.com/tag/bgc-partners/" target="_blank" rel="follow">BGC Group</a>, Inc. and has
updated its Nasdaq ticker symbol from ‘BGCP’ to ‘BGC’. </p><p>The change
also extends to the company's digital presence. The main website is now
accessible at http://www.bgcg.com and the investor relations website at
http://ir.bgcg.com.</p><p>BGC Group Starts a New
Chapter in Corporate Structure</p><p>BGC Group,
Inc. will commence trading on Nasdaq under the new ticker symbol at the market
opening on 3 July 2023. News of the rebranding was first published <a href="https://www.financemagnates.com/institutional-forex/bgc-partners-rebrands-as-bgc-group-converts-corporate-structure/" target="_blank" rel="follow">in November</a>. After more than six months, the process of structural change is now complete.</p><p>Howard W.
Lutnick, the Chairman of the Board and Chief Executive Officer of BGC, views the
latest move as a significant development for the company. "Today represents an important step for
BGC, with its conversion to a simpler, more efficient corporate structure,"
he commented.</p><p>Lutnick
believes the revamped BGC will attract a broader and more diverse investor base
in the future. The company aims to foster growth and deliver substantial
long-term value to its shareholders. With improving trading conditions across
the business and the upcoming launch of FMX, the company's electronic trading
platform, Lutnick regards this as an exciting time for BGC.</p><p>BGC Group,
Inc. is a leading global brokerage and financial technology company. Its
various <a href="https://www.financemagnates.com/terms/a/affiliates/">affiliates</a> offer a broad range of products, including foreign exchange
(FX), equities and futures. Additionally, BGC provides brokerage, clearing, and
other back-office services to financial and non-financial institutions.</p><p>What is the C-Corporation?</p><p>C-Corporations,
commonly known as C-Corps, are one of the most prevalent types of legal
structures for corporations in the United States. Unlike other corporate
structures, a C-Corp is an independent legal entity distinct from its owners,
the shareholders. </p><p>This
separation provides a crucial benefit: limited liability. Shareholders are
typically held accountable only for their investment in the corporation's
stock, which means they are shielded from personal liability for the
corporation's debts and legal <a href="https://www.financemagnates.com/terms/o/obligations/">obligations</a>.</p><p>This
corporate structure provides fluidity in terms of ownership. Shares in a C-Corp
are easily transferable, allowing shareholders to sell their stakes without
substantial barriers. Moreover, corporations can raise growth capital by
issuing either common or preferred stock.</p><p>Despite the
advantages, one significant downside of the C-Corp is double taxation. This
situation arises when the corporation's profits are taxed initially at the
corporate level and then again at the individual level when these profits are
distributed as dividends to shareholders. </p><p>Analyzing BGC’s Financial
Performance</p><p>According
to the BGC Partners report for 2022, which was published in February, the
company saw <a href="https://www.financemagnates.com/institutional-forex/bgc-partnersposts-marginal-decrease-in-fx-revenue-in-2022/" target="_blank" rel="follow">a marginal decline in revenues from forex trading</a>. The numbers
decreased by 0.3% quarter-over-quarter (compared to 2021) to $71.9 million and
0.5% year-over-year (YoY) to $299.7 million.</p><p>The total
brokerage revenue from all traded asset groups (excluding insurance) saw a
slight drop of 1.3% to $397.8 million, down from $403 million during Q4 2022.
Furthermore, on a YoY basis, the total revenue of the asset classes declined by
2.6% to $1.65 billion.</p><p>Three
months later, <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> also reported on BGC's results <a href="https://www.financemagnates.com/institutional-forex/bgc-partners-sees-marginal-increase-in-fx-revenue-in-q1/" target="_blank" rel="follow">for the
first quarter of 2023</a>. FX revenues experienced modest growth this time, rising
by 0.2% to $80.2 million (or 1% in constant currency) compared to the first
quarter of 2022.</p>

This article was written by Damian Chmiel at www.financemagnates.com.