BGC Partners, a major financial technology and brokerage firm, released its fourth quarter and full-year results for 2022 on Monday, reporting marginal decreases in its consolidated revenue from forex trading . The numbers decreased by 0.3% quarter-over-quarter (compared to 2021) to $71.9 million and 0.5% year-over-year (YoY) to $299.7 million.

The decline in revenue is reflected in other asset classes and was even more significant: rates went down 6.2% to $123.6 million in Q4 2022 and 1.6% to $549.5 million during the fiscal year 2022. On the contrary, while the credit market improved by 3.2% to $68.1 million during the last quarter, revenue from this asset class dropped by 5.6% to $271.4 million at the end of last year.

Furthermore, BGC Partners' energy and commodities revenue rose by 2.9% YoY to $73.6 million during Q4 2022 but dropped by 1.6% to $291.7 million. Similarly, for equities , the revenue dropped by 1.6% to $60.7 million in the last four months of 2022, which decreased further by 5.3% to $234.5 million by the full year.

The total brokerage revenue from these asset groups (excluding insurance) dropped slightly by 1.3% to $397.8 million, which is down from $403 million during Q4 2022. Moreover, year-over-year, the total revenue of the asset classes decreased by 2.6% to $1.65 billion.

BGC Partners Expects Strong Growth in 2023

Giving more details in the financial report, BGC Partners noted that it expects to improve its brokerage revenue performance in 2023. This is even as the financial technology company noted that its brokerage revenue grew 6% in December 2022 and has maintained the momentum into 2023 with revenue up by 8%.

“Manufactured zero and near-zero interest rates over the last fourteen years have caused the breakdown and disappearance of the historic correlation between issuance and trading volume growth. With meaningful interest rates and issuance that are multiples above 2008 levels, we believe the return of this strong positive correlation will drive our trading volumes significantly higher. This has set the stage for broad-based growth across our businesses and asset classes. We expect continued growth throughout 2023 and for the foreseeable future,” BGC Partners explained.

Meanwhile, BGC in November last year rebranded to BGC Group as part of a broader strategy to simplify and reorganize the current institutional structure under a new Corporate Conversion Agreement.