Howard Lutnick, chairman and chief executive officer of BGC Partners Inc., said the Dodd-Frank financial overhaul act may be “violently beneficial” for the New York-based firm.
“Dodd-Frank will either be beneficial, or violently beneficial for BGC Partners, I’m just not sure which one,” Lutnick, who also heads New York-based Cantor Fitzgerald LP, said today in an interview on Bloomberg Television’s “Inside Track.” “But the law, the way it’s written, really, really works for us, because it opens up markets and makes it bigger for BGC Partners.”
One of the provisions of the Dodd-Frank Act enacted in 2010 requires the Commodity Futures Trading Commission and the Securities and Exchange Commission to increase transparency in the over-the-counter derivatives market, where largely unregulated trades helped fuel the 2008 credit crisis.
BGC specializes in trading over-the-counter financial instruments and related derivative products. The firm reported post-tax distributable earnings of $52.3 million, or 20 cents per share, in the third quarter, compared with $39.5 million, or 17 cents, in the year-earlier period. The company is named after B. Gerald Cantor, the co-founder of BGC’s predecessor and of Cantor Fitzgerald.
Lutnick said BGC and Cantor Fitzgerald plan to hire about 500 employees this year between the two firms.