BGC’s FX Business Outperforms Overall Market 1Q 2011 Y -O-Y Growth 70% 61% 60% 50% (Growth) 40% 30% 21% 21% 20% 11% 10% 10% -3% 0% CLS Reuters CME FX BGC’s T otal FX BGC Spot FX ICAP Spot Average -10% Spot FX Futures Revenues Revenues FX Daily Values Source: ICAP, CME, Reuters websites. CME FX Futures growth based on total volume, ICAP Spot FX and Reuters Spot FX based on average daily volume. CLS Bank. Data includes FX spot, swap and outright forward products. Values are the total value of settlement instructions submitted to CLS on trade date. The values should be divided by two for spot and forward values and by four for swap values to equate to the values reported in the BIS tri-annual surveys. All CLS growth percentages based on average daily volumes in USD. 15
Executive Management of BGC Partners 150+ Years of Experience Howard W. Lutnick Chairman, CEO (27 years) Shaun Lynn Lee M. Amaitis President Non-executive (30 years) Vice Chairman (33 years ) Stephen Merkel Graham Sadler EVP , Sean Windeatt, Chief Financial General Counsel, Chief Operating Officer Officer Secretary (26 years) (25 years) (15 years) 16
Business Management Team Another 350 + Years Global Danny Bernard Jean-Pierre Philip Yevette LaVecchia Weinstein Aubin Norton Tierney Executive Managing Executive Executive Managing Executive Managing Chief Director and Global Managing Director and Global Director and for BGC Information Head of FX Director for Head Listed Products e-Commerce Officer for BGC Products Market Data (24 years) (20 years) (24 years) (25 years) (19 years) Asia-Pacific UK & Europe Len Harvey Mark Spring Rob Kitchin T ony Verrier Executive Managing Executive Managing Senior Managing Director Director and General Executive Managing Director and Head of Credit and Manager, Asia-Pacific Director and General Commodities Manager, London and Europe (24 years) (17 years) (36 years) (23 years) North America Mark Webster Sal Trani Louis Scotto Executive Managing Executive Managing Executive Managing Director and General Director for BGC Director, The Manager, Americas North America Americas (45 years) (30 years) (30 years) 17
BGC’s Track Record to Date President Shaun D. Lynn
BGC at Time of Formation, 2H2004: ≈ 500 Brokers & Salespeople ≈ 7 offices & 60 Desks BGC & eSpeed Combined had $491MM in annual revenues FY2004 • Vast majority of revenue from Europe and from Rates Public statements/goals at the time: • “reestablishing operations in the US that were devastated by the attacks of September 11th and expanding our…European and Asian operations... “ • “The firm will also seek to recruit, train and develop hundreds of new voice brokers [globally] . ” 19
BGC at Merger Announcement - 2Q2007: ≈ 1200 Brokers & Salespeople ≈ 15 offices &130 Desks Combined company had $1,118MM in revenues FY 2007 Public statements/goals regarding combined company at the time: • “[We] will benefit from a streamlined product development pipeline, larger capital base, enhanced ability to attract and retain brokers…and a management team of exceptional depth and breadth…” • “The combined company expects a pre -tax profit margin of approximately 13% and expects to have an effective tax rate of no higher than 27%...” • “…the combined company will generate greater revenue opportunities by applying technology to improve voice broker productivity, while accelerating the pipeline from voice to fully electronic trading...” • Continue expansion of Rates while growing percentage of revenues from Credit, FX, Equities & Other 20
BGC’s Strong Performance : Industry Leading Growth Since 2004
Strong Record of Successful, Accretive Acquisitions Maxcor / Eurobrokers Aurel Leven Liquidez Newmark (c) Marex Financial (a) (June 2009) (May 2005) (November 2006) (August 2007) (Expected 2011) Offices: Sao Paulo and Rio de Offices: New York and Offices: New York, Office: Paris Offices: London, Janeiro 25 other domestic offices London and Tokyo Johannesburg ~75 brokers 70 brokers 425 Brokers ~325 brokers Expand equity Expertise in equity Leader in FX derivatives, derivatives business in derivatives Leader in fixed income, commodities, credit, equities, emerging markets money market & and interest rate products derivatives 2005 2006 2007 2009 2010 2011 2008 Mint Partners/Mint Equities (b) ETC Pollack AS Menkul Radix Energy (September 2005) (December 2006) (March 2008) (August 2010) Offices: Paris Office: Istanbul Office: Singapore Main Office: London ~70 brokers Gain access to Turkish OTC Energy broker Mainly Equities, also Credit, Rates, equities and electronic bond specializing in crude oil / fuel Foreign Exchange, Commodities Presence in OTC & market oil/ naptha distillates and Energy exchange traded products ~100 brokers (a) BGC acquired Marex Financial’s emerging markets business . (b) BGC acquired various assets and businesses of Mint Partners and Mint Equities. (c) Expected to close before year-end 2011. 22
BGC Front Office Employee Growth Yearly Front Office Growth Front Office Growth YOY 2,000 2,000 1,718 1,721 1,705 1,612 (Front Office Employees) (Front Office Employees) 1,551 1,600 1,500 1,200 1,000 800 500 400 0 2004 2005 2006 2007 2008 2009 2010 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 Since formation of BGC in 4Q2004, front office headcount has more than tripled 23
BGC Product Growth BGC Continues to Expand its Product Offering 450 204 400 350 Number of desks 300 130 250 200 63 150 100 50 0 2004 2007 1Q2011 24
BGC Revenue Growth Continues 1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 2004 2005 2006 2007 2008 2009 2010 TTM 1Q2011 Note: Revenues for 2004-2006 are consolidated GAAP revenues from Bloomberg. Revenue from 2007-present are revenues for distrib utable earnings. “TTM” = trailing twelve months ended 3/31/2011. 25
Diversification of Revenue by Product Since 2007 2Q2007 1Q2011 Market data & Fees from related Market data & Fees from related software parties, interest & software parties, interest & Equities and Other 2% other income Equities and Other 3% other income Asset Classes 4% Asset Classes 6% 13% 7% Foreign Exchange Foreign Exchange 15% 12% Rates Rates 52% 42% Credit 20% Credit 24% 26
BGC’s Strong Performance: Industry-Leading Growth in Revenues Related to Fully Electronic Trading
BGC’s Product Spectrum in 2Q2007 ≈ 4 e -brokered Products Volume Growth New Products Fully Voice Hybrid Electronic U.S. Treasuries European Corporates European Sovereigns Exotic Options Interest Rate Derivatives Canadian Sovereigns Spot FX Structured Products Basis Swaps Emerging Markets European Govs US CDS Convertibles European Gov Repo Interest Rate Swaps NDFs USD Sovereign Equity-related Asset Backed UK Gilts UST Swaps TIPs European CDS FX Options 28
BGC’s Product Spectrum in 4Q2008 ≈ 20 e -brokered Products Volume Growth New Products Fully Voice Hybrid Electronic U.S. Treasuries European Corporates FX Options Property Derivatives Interest Rate Derivatives European Sovereigns Spot FX Structured Products Exotic Options Emerging Markets European Govs Canadian Sovereigns Commodity Derivatives Convertibles European CDS European Gov Repo Corporate Repos NDFs & Others… USD Sovereign Basis Swaps Equity-related Asset Backed US CDS UK Gilts Interest Rate Swaps UST Swaps TIPs 29
2Q2011, Over 75 Products Offer Fully Electronic Trading Volume Growth New Products Fully Electronic Hybrid Voice US Treasuries FX Options Money Markets Interest Rate Derivatives UST Curve Swaps Spot FX European Corporates Property Derivatives UST Off-the-Runs Cash Equities ELX-CME Basis Swaps Single-Name CDS (Global) Exotic IR & FX Options Basis Swaps European Gov’t Bonds Futures Routing CDS Indices (Global) Commodity Derivatives Equity Derivatives (Global) Inflation Swaps Canadian Sovereigns Sovereign CDS Shipping UK Gilts Floating Rate Notes Euro Interest Rate Swaps Commodities Base Metals Emerging Market Bonds US Dollar IRS USD & EUR Sovereigns Asset Backed Securities SGD IRS and INR IRS New Issue Securities Convertible Bonds Asian Convertible Bonds Covered Bonds US Dollar IR Options Yen IR Options Non-deliverable Forwards Base Metals Options Precious Metals Options Liquidez DMA & Others … 30
BGC Fully Electronic Growth Fully Electronic Volumes (in trillions) Fully Electronic Revenues (in millions)* $20 $45 $39.1 $40 $15.1 $35 $32.2 $31.6 $31.3 $15 $30.3 ($ millions) $12.7 $12.6 ($ trillions) $30 $11.4 $10.6 $25 $10 $20 $15 $5 $10 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 Over time, higher fully electronic revenues has = improved margins * This includes fees captured in both the “total brokerage revenues” and “ fees from related party” line items related to ful ly electronic trading. 31
Fully Electronic Increases Outpace Overall Growth Quarterly T otal and Fully Electronic* YOY Revenue Growth 60% 55% For the past 8 quarters in a 50% row, fully electronic revenues 45% have grown faster than total 40% 35% 30% 25% 20% 15% 10% 5% 0% 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 -5% FE Revenue Growth Total Revenue Growth * This includes fees captured in both the “total brokerage revenues” and “ fees from related party” line items related to ful ly electronic trading. 32
Result: BGCP has Outperformed Market & Peers
BGC Revenue Growth Surpasses Peers 20.0% 15.0% 10.0% 5.0% 0.0% BGCP GFIG ICAP CFT TLPR -5.0% -10.0% CAGR 04-TTM 10 TTM Growth Note: For BGC, revenues for 2004-2006 are consolidated GAAP revenues from Bloomberg. Revenue from 2007-present are revenues for distributable earnings. Source for above data is Bloomberg and company filings. All calculations based USD equivalent. Trailing twelve month period ends for BGC, GFIG, CFT and ICAP March 31, 2011. For TLPR the TTM period is ended April 30, 2011. 34
BGC: Strongest Market Share Gain Since 2005 TTM 2011 Market Share FY 2005 Market Share ICE/Creditex, 1.3% BGC, 17.7% BGC, 13.4% BGC gained ≈ 430 BP of market share in $US terms over 5 years = BGC gained ≈ 240 BP of market Tradition, 15.7% strongest relative performance share in $US terms y-o-y = strongest relative performance amongst public IDBs Tradition, 15.9% amongst public IDBs ICAP, 34.7% ICAP , 35.1% GFI, 11.3% GFI, 11.7% Share Gained (Lost) in Basis Points Tullet, 25.0% 600 Tullet, 18.3% 400 200 NA - BGC ICAP GFI Tradition Tullet Creditex (200) (400) (600) (800) Source: Bloomberg and Company websites. All market share calculations based on USD equivalent. TTM period for BGC, GFI, ICE, ICAP and Tradition is ended 3/31; for Tullet it is for TTM ended 12/31. ICE/Creditex revenues are for OTC Credit execution only. Note that the totals may not add to 100% due to rounding. 35
BGC: Strongest Market Share Gain YOY TTM 2011 Market Share TTM 2010 Market Share ICE/Creditex, 1.3% ICE/Creditex, 1.7% BGC, 17.7% BGC, 16.5% BGC gained ≈ 120 BP of market share in $US terms y-o-y = BGC gained ≈ 240 BP of market strongest relative performance share in $US terms y-o-y = Tradition, 17.7% amongst public IDBs strongest relative performance Tradition, 15.9% ICAP, 33.3% amongst public IDBs ICAP , 35.1% GFI, 11.7% GFI, 10.9% Share Gained (Lost) in Basis Points Tullet, 19.9% 150 Tullet, 18.3% 100 50 0 BGC ICAP GFI ICE/Creditex Tullet Tradition -50 -100 -150 -200 Source: Bloomberg and Company websites. All market share calculations based on USD equivalent. TTM period for BGC, GFI, ICE, ICAP and Tradition is ended 3/31; for Tullet it is for TTM ended 4/30. ICE/Creditex revenues are for OTC Credit execution only. Note that the totals may not add to 100% due to rounding. 36
BGC’s Improving Compensation Ratio $800 70% 65.5% 60.9% 57.7% 58.2% $700 56.2% 60% 54.1% $719.6 $713.3 $600 $644.9 $749.8 50% $560.0 $500 ($ millions) 40% $400 30% $300 20% $197.7 $200 10% $100 $0 0% 2006 2007 2008 2009 2010 1Q2011 Compensation and Employee Benefits Compensation and Employee Benefits as % of Total Revenue 37
BGC’s Comp Ratio Lowest of Peers 75% 70% ~340 bps lower than closest competitor 65% 60% 55% 50% BGC ICAP Tullet GFIG Tradition Compensation ratio for ICAP is 12 mos ended 3/31/2011, BGC and GFIG 3 mos ended 3/31/11, Tullet and Tradition 12 mos ended 12/31/10. 38
Leading Financial Intermediary Operational comparison Y -O-Y Revenue Growth (MRP Available) Y -O-Y EPS Growth (MRP Available) 60% 25% 25.0% 50% 58.8% 20% 17.1% 40% 15% 29.4% 39.5% 30% 9.7% 10% 7.4% 4.8% 20% 21.1% 5% 2.3% 10.0% 10% 2.6% NMF NMF 0% 0% -3.7% -8.3% -5% -10% Tullett MF ITG ICAP GFI KCG MKTX MF GFI Tullett KCG ITG ICAP MKTX Y -O-Y Pre-Tax Y -O-Y Pre-tax Profit Growth (MRP Available) Margin Expansion (in BPS, MRP Available) 872 60% 43.6% 850 59.3% 50% 650 476 40% 450 89 250 30% 75 71 50 12.8% 20% 9.0% 10.9% -150 -82 -113 10% -350 NMF -180 0% -550 -8.9% -9.8% -750 -10% GFI KCG Tullett ICAP MF ITG MKTX MF GFI Tullett KCG ITG ICAP MKTX Note: Source is Bloomberg or company filings. Data for calculations is sourced in US dollars from Bloomberg. MRP available is 3 Mos ended March 31 for BGC, GFI, ITG, KCG, MKTX, Most recent period for MF is 3 Mos ended December 31, for ICAP 6 Mos ended March 31, and for TLPR, most recent period available is 6 Mos ended Dec 31. 39
Leading Financial Intermediary Operational comparison (Continued) 2012 P/E Multiple 3-Mos Avg. Daily Volume (in thousands) 25 3,000 18.8x 20 2,500 2,214 16.1x 2,063 2,000 13.0x 15 9.5x 11.2x 10.4x 1,500 8.8x 7.9x 10 1,088 694 1,000 554 5 405 288 500 134 0 0 Tullet KCG ICAP GFI ITG MF MKTX MKTX GFI ITG Tullet KCG ICAP MF Market Cap (in USD B) Implied Dividend Yield 10% 6 5.2 8.3% 8% 4 6% 4.6% 4.5% 4.3% 1.9 4% 2 1.3 1.3 1.3 1.7% 0.8 0.6 0.6 2% 0.0% 0.0% 0.0% 0 0% ITG KCG MF MKTX ICAP GFI Tullett GFI ITG MKTX KCG MF Tullett ICAP Note: Source for all information above is Bloomberg. Market data is as of 5-18-11 close of market. 40
TTM T otal Return Versus Indices 60% 42% 40% 20% 15% 7% 4% 3% 2% 0% BGC MSCI S&P DJ DJ NYSE World Diversified Financial North American Global Exchanges US Select Arca Broker Services Index Financial Services Index Investment Dealer Index Sector Index Services Index Source: Bloomberg. Total Return = stock/index performance with dividend reinvestment as of 5/16/11 end of day. 41
BGCP Solid Investment Return Continues 70% TTM T otal Return w/ Dividend Reinvestment 62% 60% 50% 45% 42% 39% 40% 33% 34% 30% 27% 22% 20% 11% 10% 10% 4% 3% 0% -20% -17% -9% -4% -10% -11% -20% -30% Source: Bloomberg. Total Return = stock/index performance with dividend reinvestment as of 5/16/11 end of day. 42
New Goals and Targets
BGC’s US Opportunity Public IDB US office Locations Aspen Wilton Boston Chicago Stamford New York Piscataway Garden City Huntington Jersey City Louisville Durham Chapel Hill Los Angeles La Jolla Dallas Alpharetta Houston Sugar Land BGC Location Sarasota Other IDB Location West Palm Beach Boca Raton Miami 17 Cities with a competitor presence currently without a BGC office US product opportunities include: Commercial Real Estate, Property Derivatives, Energy, Commodities, Shipping, Munis 44
BGC’s Global Growth Opportunities EUROPE Germany, Italy, Belgium, Luxembourg, Spain, Netherlands, Scandinavia, Poland Commodities, Shipping, Energy, Real Estate Moscow Copenhagen Toronto London Nyon Paris Istanbul Chicago Aspen New York Garden City Beijing Seoul Tokyo Sarasota Dubai West Palm Beach MENA Hong Kong Mexico City Dubai, Bahrain, Israel, Qatar, Lebanon, Saudi Arabia Singapore Credit, Rates, FX, LATAM Equities, Commodities, Argentina, Chile, Energy, Shipping, APAC Colombia, Uruguay, Regional Products Malaysia, Indonesia, Thailand, Ecuador Philippines, India, New Rio de Janeiro São Paulo Zealand Credit, Rates, FX, Johannesburg Equities, Commodities, Credit, Rates, FX, Equities, Sydney Energy, Shipping, Commodities, Energy, Regional Products Shipping, Regional Products 45
BGC’s Performance Goals Current Goals 1Q2011 Actual Results Goals in 2007 • 52-57% Comp Ratio • 56% Comp Ratio • 54.1% Comp Ratio • 20% + Pre-tax Margin • 13% Pretax Margin • 17.6% Pretax Margin • 17% + Post-tax Margin • 10% Post-tax Margin • 15.0% Post-tax Margin • Increase absolute amount and • Increase front office • 10.7% of total company percentage of e-broking revenues from related to e- • Diversify product mix revenues to 20% of financial broking (all from financial • Increase fully electronic brokerage revenues product brokerage) trading • Grow financial brokerage • Front office up by 500+ front office by at least another 750 • Grow non-financial brokerage front office by at least another 750 • Grow revenues by $1Bn BGC has met its past performance goals and is setting new targets for increased revenue and profitability 46
Financial Overview Graham Sadler, Chief Financial Officer
Revenue Growth Across Most Businesses & Geographies 1Q11 Y -O-Y Revenue Growth 30% 25% 21% 25% 18% 20% 15% 7% 10% (USD millions) 5% 5% 5% 3% 2% -3% 0% -5% 48
BGC Revenue Trend (millions) $400 $366 $375 Outlook $349 $350 $350 $336 $335 ($ millions) $325 $300 $275 $250 $225 $200 Q1 2010 Q1 2011 Q2 2010 Q2 2011 low Q2 2011 high 49
Distributable Earnings Growth Post-tax Distributable Earnings Growth Pre-tax Distributable Earnings Growth Up 12% - 25% y-o-y Up 13% - 26% y-o-y $60 $70 $64.3 $54.8 $65 $55 Outlook $49.0 $58.0 Outlook $60 $50 $52.0 $44.0 $55 $45 $38.9 $46.5 $38.1 $44.8 $50 $40 $45 ($ millions) ($ millions) $35 $40 $30 $35 $25 $30 $20 $25 $20 $15 $15 $10 $10 $5 $5 $0 $0 1Q10 1Q11 2Q10 2Q11 2Q11 1Q10 1Q11 2Q10 2Q11 2Q11 Low High Low High First quarter pre-tax & post-tax distributable earnings per fully diluted share were up 30.0% and 29.4% y-o-y, respectively 50
Dividend Growth and Attractive Yield Dividend yield currently ≈ 8.3%* $0.18 $0.17 $0.16 $0.14 $0.14 $0.14 $0.14 $0.14 $0.12 $0.10 $0.08 $0.06 $0.06 $0.04 $0.02 $0.00 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 * Based on stock price as of 5/18/11 close. 51
Our Structure Leads to Lower Effective Tax Rate Partnership Units and common stock treated equivalently for calculating distributable earnings All shares and ownership units included in fully diluted share count Redemption of units similar to share repurchases Exchanges of partnership units into common stock have no effect on fully diluted share count but give rise to a non cash, non dilutive, non economic GAAP charge Consequently exchanges do not impact pre-tax distributable earnings but provide the company with a tax deduction Employee- partners of BGC have no “Tax Receivable Agreement” and therefore the lower tax rate benefits the Company and its public shareholders, not employee- partners 52
Hypothetical Example of 15% Tax Rate At $100 million in Pretax Income, $46 Million Charge for Exchange ≈ 15 % Tax Rate GAAP GAAP DE No Exchange With Exchange Pretax Income $100.0 $100.0 $100.0 Less Non-cash, Non-Economic Non-dilutive Charge for Exchange $0.0 ($46.0) $0.0 Pre-tax Income $100.0 $54.0 $100.0 Tax ($28.0) ($15.1) ($15.1) Tax Rate 28% 28% 15% Under GAAP , the difference between amortized compensation expense and exchange/redemption price = “compensation” = tax deduction for public company. This exchange has no economic impact on the company and does not lower the amount of cash available for distributions, dividends, share repurchases, or unit redemptions. 53
Lower Tax Rate Primarily Benefits Common Stockholders Pre- and Post-Partnership Enhancement: 28% and 15% Effective Tax Rates for Distributable Earnings 15% Tax Rate 28% Tax Rate Income Allocated to Income Allocated to Total Shares Units Total Shares Units Share of Pretax Income 38% 62% 38% 62% Pretax Income $100.0 $38.0 $62.0 $100.0 $38.0 $62.0 Entity tax ($28.0) ($10.6) ($17.4) ($15.0) ($5.7) ($9.3) Unit Holder Tax ($31.0) ($31.0) ($13.6) ($21.7) Unit Holder Tax Credit $17.4 $9.3 After Tax Income $72.0 $27.4 $31.0 $85.0 $32.3 $31.0 At a 50% marginal personal income tax rate, a typical U.S. partner pays the same total taxes in either scenario: an additional 22% on their distributions with a 28% effective DE tax rate; or an additional 35% at a 15% effective DE tax rate. 54
Structure Leads to Higher Current After-Tax Dividend Yield Income for GAAP and DE include foreign earnings not taxable under US tax principles GAAP net income expected to be lower than DE due largely to certain non-cash, non-economic, and non-dilutive items (mainly exchangeability) Foreign earnings and exchangeability together mean a portion of dividend to common shareholders = nontaxable return of capital 18% in 2010 • At least 50% in 2011 • In 2011, a NYC resident in top Federal, State & Local tax brackets would receive significantly higher after-tax income from BGCP dividend than from a fully taxable qualified dividend or distribution from another company or fund with same pre-tax yields 55
Hypothetical Example of a 40% Nontaxable Distribution At $100 million in Pretax Income, $46 Million Charge for Exchange ≈ 15 % Tax Rate GAAP DE With Exchange Pre-tax Income $100.0 $100.0 Less Non-cash, Non-Economic Non-dilutive Charge for Exchange $0.0 ($46.0) Pre-tax Income $100.0 $54.0 Tax ($15.1) ($15.1) Post-tax Income $84.9 $38.9 Dividend $64* Although GAAP requires a charge for “compensation”, this is non -cash and thus does not lower the amount of cash available for dividends and thus is excluded from DE. However, the non-cash GAAP charge makes a portion of the dividend a nontaxable distribution. *At 75% payout ratio. 56
Current Tax Equivalent Yield Analysis TAX ASSUMPTIONS BGCP STOCK ASSUMPTIONS Annual Pre-Tax Dividend BGCP Price Yield Qualified Ordinary Federal 15.0% 35.0% $ 0.68 $ 8.15 8.3% New York State 9.0% 9.0% New York City 3.9% 3.9% Net itemized deduction -4.5% -4.5% effective rate 23.3% 43.3% NON-TAXABLE PERCENTAGE OF BGCP ASSUMPTIONS ABOUT ALTERNATE DIVIDEND ASSUMPTIONS INVESTMENTS 2010 Actual 18 " " One company pays qualified dividend, 100% taxable 2011 Minimum Expected 50 % is non-taxable Another company pays distribution 100% taxable as ordinary income Hypothical Scenario 1 75 " " Hypothical Scenario 2 100 " " BGCP VERSUS ALTERNATE INVESTMENTS Required Pre-Tax Required Pre-Tax Yield Taxable Yield Qualified Ordinary Income BGC Pre-tax Yield BGC After-Tax Yield Dividend 18 8.3% 6.7% 8.8% 11.9% 50 8.3% 7.4% 9.6% 13.0% % of BGCP Dividend That 75 8.3% 7.9% 10.2% 13.9% isNon-Taxable 100 8.3% 8.3% 10.9% 14.7% Note: Based on stock price as of 5/18/11 close. 57
Current Tax Equivalent Yield Analysis (Continued) In 2011, a fully taxable qualified dividend would need to be 15% higher or $0.78 per share for investors to receive the same after-tax income as from a $0.68 per share BGCP dividend; a fully taxable dividend or distribution would need to be $1.06 or 56% higher per share or unit. 17.0% 14.7% 15.0% 13.9% 13.0% 13.0% 11.9% 10.9% 11.0% 10.2% 9.6% 8.8% 9.0% 8.3% 8.3% 8.3% 8.3% 8.3% 7.9% 7.4% 6.7% 7.0% 5.0% 8.3% 8.3% 8.3% 8.3% 18 50 75 100 BGC Pre-tax Yield BGC After-Tax Yield Required Pre-Tax Yield Qualified Dividend Required Pre-Tax Yield Taxable Ordinary Income Note: Based on stock price as of 5/18/11 close. 58
Recent Corporate Actions Benefit Common Stockholders 10MM share Dividend Reinvestment and Stock Purchase Plan on Form S-3 Common Class A stockholders can accumulate BGCP stock by reinvesting • dividends Common Class A stockholders can also directly purchase $100 to $10,000 • per month in shares for cash (or more with a waiver from the Company) Provides convenient and cost-effective method to purchase shares of our • Class A common stock Ongoing controlled equity offering and associated unit redemptions Together with redemptions, should not change fully diluted share count, but • are expected to increase Class A float 59
Increasing Float Leads to More Shares Traded 80 900 800 75 700 70 600 65 500 60 400 55 300 50 200 12/31/2009 12/31/2010 3/31/2011 5/9/2011 Class A Share Float (left axis - in millions) 1-Month Average Daily Trading Volume (right axis - in thousands) Note: “Float” defined as Class A shares not owned by Cantor. 60
BGC’s Technology -based Businesses Have Higher Margins Percentage of fully electronic from each of 75+ e- brokered desks ≈ <10% to 100% Profit margins = highest for eSpeed, spot FX, Market Data and Software Solutions Profit margins for newer e-brokered products vary, though are generally higher than for voice-brokered ones Over time, margins for newer e-brokered products should expand as their markets mature 61
Fully Electronic Revenue Breakdown 1Q2011 Breakdown of the 12.5% of revenues 100% 90% 80% USTs, Spot FX** 70% Voice/Hybrid 60% Market Data & 87.5% 50% Software 1.8% 40% Newer e- Fully 30% Brokered Electronic 20% Products*** 10.7% 10% Market Data & Software 0% Technology-Based Products* = 12.5% of Total Revenues *Technology-Based revenues = fully electronic brokerage, fees from related parties related to fully electronic trading, market data, and software solutions. ** Includes fees from related parties related to electronic trading. *** Fully electronic brokerage revenues from all other e-brokered products. 62
Fully Electronic Revenue and Profit by Segment 1Q2011 Technology Based Voice/Hybrid Corporate Total Revenues related to fully electronic trading* = Revenue $45,815 $308,658 $11,045 $365,518 10.7% of total DE revenues in 1Q2011 vs. 9.0% in 1Q2010 Pre-tax DE $22,630 $59,078 ($17,384) $64,324 Pre-tax DE Margin 49% 19% NMF 18% In $000s Note: For 1Q2011, “Technology Based” revenues included $34.2 MM from fully electronic trading in the “total brokerage revenues” GAAP income statement line item, $4.9 MM in the “fees from related parties” line item related to fully electronic trading, $4.6 MM fr om “market data”, and $2.1 from “software solutions.” 63
APAC Progress Len Harvey, Executive Managing Director and General Manager, Asia-Pacific
Len Harvey – Executive Managing Director and General Manager, Asia-Pacific Formerly CEO for Tullett Prebon – Asia Pacific Region for 4 years Previously CEO of Prebon Asia Pacific Region for 10 years Joined BGC in late 2008 While running BGC’s APAC region, the business has increased the number of brokers in Tokyo, Hong Kong, Singapore, Sydney and Korea 35 years of capital markets experience in broking and management 65
BGC Market Share Before Rapid GFI 3.9% Growth 9.7% Tradition 33.0% APAC IDB Market ICAP 33.3% Share in 2005 Tullet 20.3% APAC Revenue (each company’s % of their total) in 2005 30% 25% 23% 20% 15% 11% 8% 9% 8% 10% 5% 0% ICAP GFI Tullett* Tradition Source: Company websites and filings. Market share calculations in USD terms using the appropriate historical rates. ICAP 2005 = year-ended 3/31/2006. *Collins Stewart Tullet PLC. 66
BGC Headcount and Revenue Growth 2005-2010 APAC Front-Office Headcount APAC Revenue Up almost 600% Up 18% Y -o-Y in from 2005 - 2010 1Q2011 $200 400 $200 341 356 335 $168 $167 275 300 $150 $131 ($ millions) (headcount) 200 $100 $83 116 $49 100 $50 51 0 $0 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 67
2010 BGC APAC Key Highlights Singapore office y-o-y revenue growth of 48% Added Tankering to our product suite at Radix Grew NDF’s across the region Tokyo showed continued revenue growth across our Securities and Capital market companies Hong Kong’s regulatory reform in China has led to the opening of the offshore RMB markets Beijing (“China Credit BGC”) granted business license Expanded KRW IRS presence in Seoul Added Equity Derivatives, expanded NZ$ IRS in Sydney 68
Radix: Strengthening an Already Leading Energy Broker Leading Singaporean energy (oil products) broker - RADIX Founded in 2000, acquired by BGC in March 2008, now known as BGC Radix Operations based in Singapore – staff strength approx 36 brokers Products brokered included, Naphtha, Middle Distillates, Fuel Oil and Tankering (clean and black) • Considered one of the Top 3 overall brokerage houses across all Oil brokered products BGC’s goal: create a platform for future energy expansion, and utilize existing synergies with our overseas offices to grow our global presence in the energy (oil) markets 69
Radix: Strong Success After BGC Acquisition Brokerage Revenue ($USD MM) Headcount 2008 2009 2010 1Q2010 1Q2011 2008 Q12010 Q12011 70
Broker Productivity Drives APAC Revenue Growth Headcount Revenue 600 $100 500 $75 58 365 ($ millions) 400 (Headcount) 339 49 336 $50 38 300 $25 200 100 $0 1Q2009 1Q2010 1Q2011 1Q2009 1Q2010 1Q2011 71
BGC Asia - Expanding Footprint 60 # of APAC desks up by more 52 48 than 8X since 2004 50 37 40 27 30 20 6 10 0 2004 2006 2008 1Q2010 1Q2011 72
Asia Revenue Continues to Grow Tradition 22.5% 28.3% APAC IDB Market Share GFI 11.2% Most Recent Period Available ICAP Tullet 20.2% 17.9% APAC Revenue (each company’s % of their total) Most Recent Period Annualized 30% 24% 25% 16% 20% 13% 11% 11% 15% 10% 5% 0% ICAP GFI Tullett Tradition Source: Company websites and filings. Note: Competitors based on most recent period available. BGC, Tradition, GFI are annualized from 3 Mos 3/31/11, Tullet is 12 Mos 12/31/10, ICAP is 12 Mos 3/31/11. Calculations in USD terms. 73
BGC Asia Business Mix Has Reached Critical Mass Rates FX • RMB Rates • RMB NDF • HKD Deposits • Korean NDF • IDD • Asian NDF • China Rates • FX Forwards • Sing NDS, Thai Baht Swaps • G10 FX Forwards • IRS • EM FX Options • Short T erm Swaps • Exotics • USD IRS • Foreign Exchange Equities & Other • Korean Swaps • Gold Asset Classes • Futures 26.4% • IRO Credit • Futures & Options • Asia Bonds & CDS Rates • Convertible Bonds 26.7% Equities & Other Asset • Local Currency Bills & Foreign Classes Bonds Exchange • Structured Products • Cash Equities 33.8% Credit • Equity Derivatives • “ Dimsum ” Bonds 13.0% • Energy, Tankering, Oil • China Services • Regional Products • Equity Index Options 74
BGC Asia Electronic Trading on BGC Trader 2009 4 Products 2010 8 Products 23% 2Q2011 27 Products 18% 1Q2011 FE Revenue Growth Total Revenue Growth Note: Growth Excludes US Treasuries. 75
BGC Asia Pacific: Drivers of Future Growth Continued roll-out of fully electronic trading for Asia Organic growth of existing products Hiring profitably in existing geographies and products • Rates, Credit, FX, Equities, China, Korea Hiring profitably in new geographies and products • Shipping, Commodities, Energy Acquiring new businesses which are accretive to BGC’s EPS 76
Regulatory Update Jeffrey Hogan, Managing Director Business Development
Review of Dodd-Frank Act aspirations Meet G20 objectives Reduce systemic risk & increase transparency Increase electronic swap executions delivered into central counterparties Centrally capture essentially all derivative transactions BGC remains engaged in the rule drafting process 78
Pre-Dodd-Frank Implementation Benefits for BGC Acceleration of electronic penetration strategy Engagement in collaborative dialogue with key trading partners Elevation of co-operation deepens relationships irrespective of rules Opportunity to create early separation from competitors Banks and dealers realize that traditional dealer to client relationships may be subject to change 79
BGC’s Attributes as Ideal SEF Prototype Familiarity with all aspects of hybrid many-to-many marketplaces Extremely broad product coverage Hybrid brokerage franchise serving as global liquidity gatekeeper Vast transactional DNA embedded into hybrid operations Proven system scalability to accommodate derivative volume growth 80
BGC Already Offers Many Clearing & Settlement Options BGC Trader Voice trades BGC Middle Office Plus Other CCPs… BGC Broker 81
Expectations & Timetables Phases of Dodd-Frank implementation Transition period of voluntary clearing Fewer SEFs than anticipated Flexibility in individual SEF access rules EMIR & MiFID update Likelihood of gaps in global rulemaking 82
Technology Yevette Tierney, Chief Information Officer & Philip Norton, Executive Managing Director, e-Commerce
BGC -Voice and Electronic Brokerage BGC T echnology Enabling Growth in Fully – Electronic Revenues Ongoing commitment to significant investment in technology Leading the way in development of trading system technologies Quickening migration of voice business to fully- electronic Assisting BGC’s growth strategy Generating increased fully-electronic revenues at BGC 84
The BGC/eSpeed Merger…Realizing the Benefits Single vision ensures more focused technology spend Accelerated business shift to hybrid broking as BGC Trader market dictates Single platform, single code - BGC Trader Functionality readily transferrable BGC Broker Simultaneous multi-product development 85
BGC T echnology Surveillance, Credit, Fault T olerance UST & Euro$ Futures Exchange FIX, Kleos, Low Latency UST, Spot FX Pure Electronic Dark Pool BGC Trader, Volume Match, IRS, FXO, CDS… Hybrid Markets LOTS Exotic Options Voice Broking Market Data, Broker Analytics 86
BGC - Technology Company Annual IT Budget of approximately $120MM 475 full time IT staff globally Proprietary technology protected by over 600 granted and pending patents In-house developed systems comprised of over 8 million lines of source code Privately owned and operated global network connected to over 800 customer sites 87
BGC Technology is Global Development Centers Comm/Data Centers New York London New York Beijing Hong Kong London Seoul Tokyo Chicago Singapore Singapore Copenhagen Sydney Istanbul Johannesburg Nyon Tokyo Paris Mexico City Hong Kong Moscow Rio De Janeiro Toronto Dubai São Paulo Red = BGC data & communications centers & their connections Blue = Large customers & BGC’s connections to them 88
BGC Technology Edge 89
Pricing Analytics Broker analytical pricing eTrading & hybrid systems… External media xCloud …and Derivation engines… …giving calculation efficiency 90
BGC FOD – Improving Global Price Discovery 150+ applications supplying real-time price distribution of approximately 150 million messages per day to 1,000+ screens and digitised feeds for BGC, BGC Trader, BGC’s customers and BGC Market Data European Desks Asian Desks Americas Desks Interest Rate Options (EUR, USD, GBP, Interest Rate Options (JPY, USD, Interest rate Options (USD, MXN) Emerging Markets) AUD, Emerging Markets) Interest Rate Swaps (USD, MXN, Interest Rate Swaps (EUR, USD, GBP, Interest Rate Swaps (USD, AUD, Emerging Market) CHF, Scandi, Emerging Markets) NZD, SGD, HKD, KRW, THB, Inflation Swaps and Options Cross Currency Basis Swaps Emerging Markets) Emerging market FX and NDF Inflation Swaps & Options Inflation Swaps Asian Non-Deliverable Forwards G10 FX Forwards Credit Default Swaps (JPY, HKD, US Government Bonds Emerging Markets FX Forwards & NDF SGD, USD, AUD,KRW) FX Options (G10 & Emerging Market) Asian Non-Deliverable Forwards HK Bonds European Government Bonds & Repos HK Convertibles Corporate Bonds Asian Non-Deliverable Swaps Emerging Market Bonds Asian Non-Deliverable Forwards Turkish FX/Bonds/IRS Australian & NZ Government Bonds Russian Government Bonds & Repos UK Gilts & Gilt repos Australian & NZ Corporate Bonds Japanese Government & Euroyen bonds Energy (Australia and HK) Credit Default Swaps (EUR, USD & Emerging Market) FX Options (G10 & Emerging Convertibles Market) FRN Equity Derivatives (HKD and JPY) FX Options (G10 & Emerging Market) Equity Cash and Delta one (JPY) Precious Metals Deposits (HK) Structured Products FX Options (G10 & Emerging Equity Derivatives Market) Equity Cash 91
Hybrid Markets End-to-End Solution Matching Engines MarkitWire BGC Brokers Volume Match STP ICELink BGC LOTS GUI BGC FINRA Traders Network MBSCC FIFO Replay API World BGC PRORATA NET FICC wide World Algo MIDPOINT Wide CLS -Black Box Market FIX -Aggregator Pricing CME Data CoLo Analytics OCC ISV NSCC NFA Others 92
BGC Trader – Multi Asset Class BGC Trader CDS BGC Trader IRS BGC Trader FXO 93
BGC Trader – Global 94
BGC Trader - New Business e-Revenue Growth 95
BGC Trader – Alternative Execution 96
BGC Trader - LOTS of New Opportunities Key drivers for development: Fast deployment in to New Markets Creation of specific or bespoke instruments to be traded right away Provides liquidity on non standardised strategies Full electronic and Volume Match capabilities Significant traction since launch 1. Broker creates new business and Instrument to be traded 2. Traders can immediately price and trade structures on LOTS 97
BGC Trader Volume Match – 24/5 98
Electronic Markets End-to-End Solution Matching Engines MarkitWire BGC Brokers Volume Match STP ICELink BGC LOTS GUI BGC FINRA Traders Network MBSCC FIFO Replay API World BGC PRORATA NET Algo FICC wide World MIDPOINT Wide -Black Box CLS Market FIX -Aggregator Pricing CME Data CoLo Analytics OCC ISV NSCC NFA Others 99
UST & Spot FX 100
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