INTERDEALER broker BGC Partners plans to expand in China and the Americas after reporting a 45 per cent rise in second quarter pre-tax profits.
BGC, which brokers financial instruments for banks and traders, said it planned to target emerging market economies for growth. The company has established a presence in Sao Paulo, Moscow and Beijing over the past two years and wants to deploy more resources in the regions.
US spokesperson Bob Hubbell said: “Over the long term [China] is going to be an important emerging market. In the long run we want to be there as well as in other markets like Russia and Brazil. In addition we are really expanding in the Americas.”
BGC’s stance on China contrasts with that of British rival Tullett Prebon, which this week said the country was of limited appeal to interdealer brokers due to its strict rules on joint ventures.
BGC’s headcount rose 11.5 per cent to 1,600 brokers compared with the second quarter of 2009. Hubbell said the rate of growth would continue.
BGC reported a 44.7 per cent jump in earnings to $46.5m (£29.3m) or 20 cents per share yesterday. Net income fell 7.4 per cent to $19.6m or 9 cents per share.