FMX-owner BGC's profit jumps on boost from rates, energy trading

Bgc

30/04/2024 13:58

April 30 (Reuters) - BGC Group's  BGC.O  first-quarter
profit nearly doubled, it said on Tuesday, as investors looking
to navigate the uncertainty around monetary policy pushed
trading volumes higher in the brokerage's rates and energy
businesses.
    The strong report comes less than a week after the company's
FMX exchange, which is looking to take on derivatives trading
giant CME Group  CME.O , secured a minority investment from 10
financial market giants including Bank of America  BAC.N ,
Goldman Sachs  GS.N  and JPMorgan Chase  JPM.N .
    Investors are hotly debating the trajectory of rate cuts
after discouraging signs in the latest inflation and gross
domestic product data, which have raised fears that the Federal
Reserve may have to keep monetary policy tighter for longer.
    The uncertainty has prompted traders to actively rejig
portfolios across asset classes to maximize returns and hedge
against risk. 
    Revenue in BGC's rates unit jumped 6.3%, while the energy,
commodities and shipping business rose 32.1% from a year ago.
    Net income jumped to $46.4 million, or 10 cents a share, for
the three months ended March 31, from $24.2 million, or 5 cents
per share, last year.

 (Reporting by Niket Nishant in Bengaluru; Editing by Shailesh
Kuber)
 ((Niket.Nishant@thomsonreuters.com;))