Cantor Fitzgerald Company

Cantor Fitzgerald Company

1. Company Overview

Founding Date and Background

Cantor Fitzgerald was founded in January 1945 by Bernard Gerald Cantor and John Fitzgerald as a limited partnership. The firm began as a voice brokerage for Wall Street's fixed-income inter-dealer community and has since evolved into a leading global financial services provider.

Parent Company/Owning Structure

Cantor Fitzgerald operates as an independent entity and is not publicly traded. It has various subsidiaries, including Cantor Fitzgerald Securities Corp., which offers investment banking and brokerage services. The firm is privately owned, with Howard Lutnick serving as the Chairman and CEO.

Headquarters Location

The corporate headquarters of Cantor Fitzgerald is located at 110 East 59th Street, New York City, New York, 10022, United States.

Global Business Scope

Cantor Fitzgerald has a significant global presence, operating in major financial centers worldwide. The firm serves over 5,000 institutional clients across various sectors, including finance, investment banking, and asset management. It has trading desks in 41 locations, including offices in Europe, Asia, and the Americas.

Main Regulatory Bodies

Cantor Fitzgerald is regulated by several financial authorities, including the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Commodity Futures Trading Commission (CFTC). Additionally, it complies with regulations in the jurisdictions where it operates.

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2. Company History and Development

Key Milestones

• 1945: Cantor Fitzgerald is founded.
• 2001: The firm suffers a tragic loss during the September 11 attacks, with 658 employees killed. In the aftermath, Cantor Fitzgerald donated 100% of its revenues on September 11 each year to charitable causes.
• 2004: The firm spun off its inter-dealer brokerage unit into a separate publicly held company, BGCP.
• 2017: Cantor Fitzgerald Investment Advisors acquired the asset management businesses of Efficient Market Advisors.

Business Expansion Journey

Cantor Fitzgerald has expanded its services significantly since its inception. Initially focused on bond trading, the firm has diversified its offerings to include equity capital markets, investment banking, asset management, and real estate private equity. Its global footprint has grown through strategic acquisitions, including the purchase of Seymour Pierce in London and Dolmen Stockbrokers in Ireland.

Customer Base Growth

The firm's client base has grown to include more than 5,000 institutional clients, including Fortune 500 companies. This growth is attributed to its reputation for innovation and customer service, as well as its extensive product offerings.

Platform Development History

Cantor Fitzgerald has invested in technology to enhance its trading capabilities. Notable developments include the launch of its fully electronic trading platform, eSpeed, which revolutionized bond trading. The firm has continued to innovate, focusing on integrating advanced technology into its operations.

Important Awards or Recognitions Received

Cantor Fitzgerald has received various accolades over the years, including recognition as one of the top minority-owned investment banks and rankings in prestigious financial publications for its services in capital markets and investment banking.

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3. Trading Services Offered

Forex Trading Options

Cantor Fitzgerald offers a range of forex trading options, providing access to multiple currency pairs. While specific numbers may vary, the firm typically offers over 50 currency pairs, catering to both institutional and retail clients.

Stock Trading Options

The firm provides comprehensive stock trading services, including access to domestic and international equities. Clients can trade through various platforms, benefiting from Cantor Fitzgerald's extensive market research and insights.

CFD Trading Products

Cantor Fitzgerald also offers Contracts for Difference (CFDs) on various underlying assets, allowing clients to speculate on price movements without owning the underlying asset. This includes equities, indices, and commodities.

Other Financial Instruments

In addition to traditional trading options, Cantor Fitzgerald provides access to other financial instruments, including:

• Cryptocurrencies: The firm has begun to explore offerings in the cryptocurrency space, catering to growing client interest.
• Commodities: Clients can trade various commodities, including energy products and precious metals.

Special Services or Unique Advantages

Cantor Fitzgerald differentiates itself through its strong institutional sales force, proprietary trading technology, and extensive market research. The firm also emphasizes client service and tailored solutions, ensuring that clients receive personalized attention and expertise.

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4. Regulatory and Legal Background

Detailed Regulatory Information

Cantor Fitzgerald is regulated by various bodies, including:

• U.S. Securities and Exchange Commission (SEC)
• Financial Industry Regulatory Authority (FINRA)
• Commodity Futures Trading Commission (CFTC)
• National Futures Association (NFA)

Legal Entity Structure by Region

The firm operates through multiple legal entities depending on the region, including Cantor Fitzgerald LP in the U.S. and Cantor Fitzgerald Ireland. Each entity complies with local regulations and licensing requirements.

Client Fund Protection Measures

Cantor Fitzgerald employs robust measures to protect client funds, including segregating client accounts and adhering to strict regulatory requirements. The firm also participates in the Securities Investor Protection Corporation (SIPC) to provide additional protection for clients.

Countries/Regions Served

Cantor Fitzgerald serves clients globally, with a strong presence in North America, Europe, and Asia-Pacific regions. The firm has offices in key cities, including London, Dublin, and Hong Kong, allowing it to cater to a diverse international clientele.

Compliance History

The firm has maintained a strong compliance record, consistently adhering to regulatory standards. It has implemented comprehensive compliance programs to monitor and manage risks associated with its operations.

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5. Competitive Landscape

3-5 Main Competitors

Cantor Fitzgerald operates in a competitive environment, with several key players in the financial services sector, including:

• Jefferies Financial Group Inc.
• Oppenheimer & Co. Inc.
• Macquarie Group Ltd.
• Nomura Holdings Inc.

Positioning in the Industry

Cantor Fitzgerald is positioned as a leading middle-market investment bank, specializing in fixed income, equity capital markets, and investment banking services. Its focus on institutional clients and innovative trading solutions distinguishes it from competitors.

Market Differentiation Factors

The firm differentiates itself through:

• Strong Institutional Focus: Serving a large base of institutional clients, including hedge funds and asset managers.
• Expertise in Fixed Income: A long-standing reputation in bond trading and related services.
• Innovative Technology: Investment in trading technology, such as eSpeed, enhances its service offerings.
• Commitment to Philanthropy: The firm's dedication to charitable causes, particularly in remembrance of its employees lost on September 11, has fostered goodwill and loyalty among clients.

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In conclusion, Cantor Fitzgerald has established itself as a prominent player in the global financial services landscape, known for its innovative approach and strong client relationships. With a rich history and a commitment to excellence, the firm continues to adapt and grow in an ever-evolving market.

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