GFI Company

　　

GFI Company: A Comprehensive Overview

　　

1. Company Overview

　　

Founding Date and Background

　　GFI Group Inc. (commonly referred to as GFI) was founded in 1987 by Michael Gooch in New York City. The company was established to provide competitive wholesale market brokerage services across various global over-the-counter (OTC) and exchange-listed cash and derivatives markets. Over the years, GFI has built a reputation as an industry leader in the financial services sector.

　　

Parent Company/Ownership Structure

　　GFI Group is a subsidiary of BGC Partners, Inc., a leading global brokerage company that services the financial and real estate markets. Following a 56% acquisition in February 2015, GFI operates as a division of BGC Partners.

　　

Headquarters Location

　　The headquarters of GFI Group is located at 55 Water Street, New York, New York, United States.

　　

Global Business Scope

　　GFI operates in over 22 countries, employing approximately 2,000 people and serving more than 2,600 institutional clients, including investment banks, corporations, insurance companies, and hedge funds. The companys global reach is complemented by its presence in major financial centers such as London, Paris, Tokyo, Hong Kong, and Singapore.

　　

Main Regulatory Bodies

　　GFI is a member of the Wholesale Markets Brokers Association (WMBA) and the WMBA Americas. The company is currently in the process of registering as a Swap Execution Facility (SEF) and a Designated Contracts Market (DCM) in North America, as well as an Organised Trading Facility (OTF) in Europe.

　　Back to top

　　

2. Company History and Development

　　

Key Milestones

• 1987: GFI Group is founded by Michael Gooch.
• 1999: Establishment of an online spot market for international telecommunications minutes.
• 2001: Acquisition of FX analytical software company Fenics Software Ltd.
• 2005: Acquisition of North American operations of Starsupply Petroleum LLC.
• 2006: Acquisition of North American brokerage operations of Amerex Energy.
• 2008: Acquisition of Trayport Ltd., a leading provider of trading software for OTC energy products.
• 2010: GFI moves its listing from NASDAQ to NYSE.
• 2015: GFI is delisted from NYSE following a majority acquisition by BGC Partners.
• 2018: A federal judge dismisses a lawsuit against GFI from former shareholders.

　　

Business Expansion Journey

　　GFI has expanded its operations both organically and through strategic acquisitions. The company has ventured into a wide range of markets, including fixed income derivatives, cash fixed income, emerging market financial products, energy and commodity derivatives, and equities.

　　

Customer Base Growth

　　GFI serves a diverse clientele, comprising over 2,600 institutional clients. This client base includes leading investment and commercial banks, corporations, insurance companies, and hedge funds, showcasing the companys ability to cater to various sectors within the financial services industry.

　　

Platform Development History

　　GFI operates a hybrid brokerage strategy that combines traditional voice brokerage with advanced trading technology. This approach has allowed the company to enhance its trading capabilities and offer innovative solutions to its clients.

　　

Important Awards or Recognitions Received

　　GFI Group has consistently ranked highly in market surveys published by leading industry publications, reflecting its reputation as an industry leader. Specific awards or recognitions are not detailed in the provided information but can be explored further through industry reports.

　　Back to top

　　

3. Trading Services Offered

　　

Forex Trading Options

　　GFI provides a robust forex trading platform that offers a wide range of currency pairs. While the exact number of currency pairs is not specified, GFI is known for its comprehensive forex trading services, catering to institutional clients.

　　

Stock Trading Options

　　GFI offers trading services for equities, allowing institutional clients to engage in stock trading across various markets. This includes cash equities and corporate fixed income products.

　　

CFD Trading Products

　　GFI also provides Contract for Difference (CFD) trading options, enabling clients to speculate on price movements of various financial instruments without owning the underlying asset.

　　

Other Financial Instruments

　　In addition to forex and equities, GFI offers trading services in commodities, energy derivatives, and other financial instruments. The company is actively involved in OTC derivatives, enhancing its service offerings in these areas.

　　

Special Services or Unique Advantages

　　GFIs hybrid brokerage model allows it to offer a combination of telephonic and electronic trade execution services. This flexibility enables the company to cater to the specific needs of its clients, enhancing trading liquidity and efficiency.

　　Back to top

　　

4. Regulatory and Legal Background

　　

Detailed Regulatory Information

　　GFI is subject to the regulations of several key bodies, including:

• The Commodity Futures Trading Commission (CFTC) in the United States
• The Financial Conduct Authority (FCA) in the United Kingdom
• Other regional regulatory authorities depending on the jurisdictions in which it operates

　　

Legal Entity Structure by Region

　　GFI operates through various legal entities, including GFI Brokers LLC, which is incorporated in the United States. The companys structure allows it to comply with local regulations while serving a global client base.

　　

Client Fund Protection Measures

　　GFI adheres to strict regulatory standards to ensure the protection of client funds. This includes maintaining segregated accounts and complying with capital requirements set by regulatory authorities.

　　

Countries/Regions Served

　　GFI provides services in multiple countries across North America, Europe, and Asia, with a focus on major financial markets. The companys extensive network allows it to serve a diverse range of institutional clients.

　　

Compliance History

　　GFI has maintained a strong compliance record, although specific instances of compliance challenges are not detailed in the provided information. The companys proactive approach to regulatory adherence is evident in its ongoing registration efforts as a SEF and DCM.

　　Back to top

　　

5. Competitive Landscape

　　

3-5 Main Competitors

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

• Tullett Prebon
• BGC Partners (its parent company)
• ICAP
• Tradeweb

　　

Positioning in the Industry

　　GFI is positioned as a leading wholesale brokerage firm, known for its hybrid brokerage model that combines voice and electronic trading. This positioning allows GFI to cater effectively to institutional clients seeking liquidity and execution services.

　　

Market Differentiation Factors

　　GFI differentiates itself through its:

• Hybrid brokerage approach, which combines traditional and electronic trading methods.
• Extensive global reach and client base.
• Strong reputation and ranking in industry surveys.
• Comprehensive suite of trading services across various asset classes.

　　Back to top

　　In conclusion, GFI Group stands as a prominent player in the financial services industry, offering a diverse range of brokerage and trading services to institutional clients worldwide. With a solid foundation, strategic growth, and a commitment to regulatory compliance, GFI continues to enhance its offerings and maintain its position as an industry leader. For more information about GFI Group, please visit their official website or explore learn more.