GFI Company Overview

Founding Date and Background

GFI Group Inc. was founded in 1987 by Michael Gooch in New York City. Initially focused on providing brokerage services for fixed income derivatives, GFI has evolved into a significant player in the financial services industry, offering a variety of trading and brokerage services across multiple asset classes.

Parent Company/Ownership Structure

In March 2015, GFI Group was acquired by BGC Partners, Inc., a global brokerage company. Following this acquisition, GFI operates as a division of BGC Partners, benefiting from its parent company's extensive resources and market reach.

Headquarters Location

GFI Group's headquarters is located at 55 Water Street, New York, NY 10041, United States. This strategic location positions the company in one of the world's major financial hubs.

Global Business Scope

GFI operates globally, providing services to clients in key financial centers around the world, including London, Paris, Tokyo, Hong Kong, and Singapore. The company serves a diverse client base that includes institutional investors, banks, and hedge funds, facilitating transactions across various financial markets.

Main Regulatory Bodies

GFI is subject to regulation by several financial authorities, including the Financial Conduct Authority (FCA) in the UK and the Commodity Futures Trading Commission (CFTC) in the United States. The company's operations are also influenced by regulations from the Securities and Exchange Commission (SEC) and other international regulatory bodies.

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Company History and Development

Key Milestones

• 1987: GFI Group is founded in New York City.
• 2001: GFI is incorporated under Delaware law.
• 2015: GFI is acquired by BGC Partners, enhancing its market position.
• 2018: GFI is identified as a suspicious clone by the FCA, which highlights ongoing regulatory challenges.

Business Expansion Journey

Over the years, GFI has expanded its service offerings through strategic acquisitions and the development of new platforms. Key acquisitions include the purchase of Fenics Software Ltd. in 2001, which enhanced GFI's electronic trading capabilities. The company has also grown its presence in international markets, establishing offices in Asia and Europe.

Customer Base Growth

GFI has developed a robust customer base, serving over 2,600 institutional clients, including leading commercial and investment banks, corporations, insurance companies, and asset managers. This diverse clientele has contributed to GFI's reputation as a trusted liquidity provider.

Platform Development History

GFI has invested significantly in technology to enhance its trading platforms. The company offers advanced electronic trading tools that facilitate the efficient execution of trades across various asset classes. Notable developments include the integration of hybrid brokerage systems that combine voice and electronic trading.

Important Awards or Recognitions Received

GFI has received industry recognition for its services, including being named "Commodity Broker of the Year" by Energy Risk Magazine in 2010. The company has also been recognized for its leadership in the credit derivatives market.

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Trading Services Offered

Forex Trading Options

GFI provides access to a wide range of forex trading options, offering numerous currency pairs for trading. The exact number of currency pairs available can vary but typically includes major pairs such as EUR/USD, GBP/USD, and USD/JPY, along with various minor and exotic pairs.

Stock Trading Options

GFI facilitates trading in equities, providing access to both public and private companies' shares. This service enables clients to diversify their portfolios and engage in stock trading across different markets.

CFD Trading Products

GFI offers Contract for Difference (CFD) trading products, allowing clients to speculate on price movements of various underlying assets without owning the asset itself. This includes equities, indices, commodities, and more.

Other Financial Instruments

In addition to forex and stock trading, GFI provides access to a range of other financial instruments, including:

• Cryptocurrencies: GFI has expanded its offerings to include cryptocurrency trading, catering to the growing demand in this market.
• Commodities: Clients can trade various commodities, including energy products like oil and gas, as well as precious metals such as gold and silver.

Special Services or Unique Advantages

GFI's hybrid brokerage model combines traditional voice brokerage with advanced electronic trading capabilities, providing clients with a unique advantage in accessing liquidity and executing trades efficiently. The company's comprehensive customer support and market data analytics further enhance its service offerings.

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Regulatory and Legal Background

Detailed Regulatory Information

GFI is regulated by multiple authorities, including:

• Financial Conduct Authority (FCA) in the UK
• Commodity Futures Trading Commission (CFTC) in the US
• Securities and Exchange Commission (SEC) in the US
• Other international regulatory bodies depending on the regions in which it operates.

Legal Entity Structure by Region

GFI operates through various legal entities across different regions. In the UK, for example, GFI Brokers Limited is registered and operates under FCA regulations. The company maintains a similar structure in other jurisdictions to comply with local laws.

Client Fund Protection Measures

GFI implements various measures to protect client funds, including segregation of client funds from the company's operational funds and adherence to regulatory requirements for capital adequacy. However, it is essential for clients to understand the specific protections available based on their jurisdiction.

Countries/Regions Served

GFI's services are available worldwide, with a significant presence in key financial markets such as the US, UK, Europe, and Asia. The company's global reach allows it to cater to a diverse range of clients and trading needs.

Compliance History

GFI has faced regulatory scrutiny in the past, including being fined by the FCA for inadequate control systems and identified as a suspicious clone. These issues have raised concerns about the company's compliance practices and have impacted its reputation.

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Competitive Landscape

3-5 Main Competitors

GFI operates in a competitive landscape with several key players, including:

• Tullett Prebon: A leading inter-dealer broker offering similar services across various asset classes.
• ICAP: Another major player in the inter-dealer brokerage space, providing a wide range of financial services.
• Tradeweb: A platform that offers electronic trading solutions, competing directly with GFI's electronic trading capabilities.
• BGG Partners: As GFI's parent company, BGC also competes in the same markets, providing brokerage services across multiple asset classes.

Positioning in the Industry

GFI is positioned as a prominent inter-dealer broker, leveraging its hybrid brokerage model to provide clients with efficient trading solutions. Its long-standing presence in the market and extensive service offerings contribute to its competitive edge.

Market Differentiation Factors

GFI differentiates itself through its combination of voice and electronic trading services, which allows for greater flexibility and efficiency in executing trades. Additionally, the companys focus on complex financial products and its strong customer support further enhance its market position.

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In conclusion, GFI Group Inc. has established itself as a significant player in the financial services industry, offering a diverse range of trading services. Despite facing regulatory challenges and competition, the company continues to evolve and adapt to the changing market landscape, maintaining its focus on providing value to its clients.

For more information on GFI's services and offerings, learn more.