BGC Group, Inc. Class A Common Stock Investor Day 2026

Hi everyone. If everyone could take their seats, we're going to get started momentarily.

Thanks, Jason. Good afternoon, everyone, and welcome to our first-ever FMX Investor Day. And a warm welcome to those of you joining via the webcast. I'm John Abularrage, the CEO of the BGC Group. First, let me explain why we called this day. And then I'll get out of the way and let you hear from the people who really drive this business. For most of the last 40 years, if you wanted to trade a US interest rate future, you only had one place to go: one venue, one order book, one set of fees. That's not how any other major market works. In foreign exchange, corporate bonds, equities, and energy, clients have a choice of where to trade, multiple venues, competing on price, service, and technology every day. But in the market, the price is the risk-free rate for the entire world. The collateral base for the global financial system. There was but one dominant exchange and limited choice. This is what FMX set out to change. And we were not alone in this thinking. Ten of the world's largest banks and market-making firms thought so as well. Which is why in April of 2024, they did not just become clients of this exchange.

They became owners. That is the single most important thing to understand about FMX. FMX was built by the market for the market. The people who use FMX own FMX. The people who own FMX use FMX. Now, many have said that this is a long shot. More than once. And sometimes not so politely. We're up against a well-run incumbent, nearly 40 years of habit, real network effects, and there's a list of firms who have tried before and did not succeed. So let me tell you what we did differently. Eight years ago, we launched our cash US Treasuries platform with no market share, against an incumbent that held more than 80%. We captured market share, one client at a time, by having innovative technology, tighter prices, and exceptional client service. Today, FMX UST is at 42% of the club market, an all-time high. 84 billion dollars a day, up 35% year on year, with more than 150 of the world's largest clients connected. FMX is the fastest-growing cash treasury platform in the world eight years running. We began this journey more than 80 points behind. And today, we trail by only single digits. And I can promise you, we did not enter this market to be number two.

FMX FX is one of the fastest-growing foreign exchange platforms in the world, more than tripling to 19 billion dollars a day since our equity partners invested two and a half years ago. And we are following the same playbook for the US interest rate futures exchange. We launched SOFR in September of 2024. We then launched the two in the five-year US Treasury Futures contracts in May of 2025, followed by launching the full curve in August of 2026. Last quarter, FMX Futures averaged 80,000 contracts a day, up 49%, with a monthly record of 112,000 daily contracts in September. This momentum continued into the fourth quarter, where we achieved a daily record of 162,000 contracts, traded on the second of October. With 12 FCMs already live on the platform, we have nearly 80% of cleared swap balances available to FMX. And finally, two more numbers to keep in mind before I take you through today's program. Those numbers are 82 and 68. 82% of the time last quarter, our SOFR bid offer price was equal to or better than the CMEs. And on US Treasury futures, that was 68% of the time. This achievement is by design and not by accident.

We built this exchange with the tightest tick sizes in the market, supported by the owners of FMX, which are the largest traders in the world. Two years ago, FMX client meetings were largely about explaining our potential and our plans going forward. Now these meetings have shifted to questions around speed of connectivity, how much of the book we can move across, and what it takes to maximize margin efficiencies. Every FMX meeting now leaves me more convinced than ever of FMX's role in the market and its ultimate path to success. Now onto this afternoon's program. We will have six sessions, then a closing keynote. Please make the most of the Q&A at the end of each session, as this is a great opportunity for you to discuss with FMX the people who actually use the platform and who run that business. First, Lou Scotto, FMX's CEO, opens with an overview of FMX, its vision and strategy. FMX today is one marketplace across five of the largest markets in the world: cash treasuries, interest rate futures, foreign exchange, inflation, and repo. Next, we'll address the strategic case for FMX from the people best placed to explain it: the owners and the users of the FMX platform.

These are our partners. Be sure to ask them why they became investors in FMX. After the break, you'll hear from the firms that trade on FMX about what makes our technology different. Then, Robert Allen, president of FMX Futures Exchange, will host a panel on our LCH partnership. I want to spend just an extra minute here setting this one up, because cross-margining is probably the most complicated part of our story. For us to clearly explain, yet it is perhaps the most valuable. It lives inside clearing mechanics, described in a language nobody outside a margin team enjoys. So today, we hope to explain the mechanics in a simple and clear way. We are not going to talk about it in the abstract. Robert and the panel are going to walk you through real-world examples. Please use this time to make sure you come away with an understanding of the importance of the cross-margining benefit. Then, BGC's chairman and general counsel, Stephen Merkel, will host a panel on legal and regulatory policy. He'll be joined by Alex Titus, chief advisor to CFTC chairman Selig, George Canalos of Milbank, formerly the co-director of the SEC's Division of Enforcement, and his colleague Josh Sterling, who helped write the Dodd-Frank rules.

Finally, we will conclude the presentations with Sean Windeatt, my fellow CEO at BGC, who will take you through the financials and the economics of the business. Lastly, a few thank yous before I hand it over. Firstly, to Lou Scotto, the FMX management team, and every employee who built this world-class platform. Exchanges are not built on strategy decks. They are built by people writing code, onboarding clients, and answering the phones at 6:00 a.m. Many of them are here today, and to each one, thank you. To BGC's shareholders and our 10 equity partners. Building an exchange takes patience and belief, and you've given us both. Our equity partners brought liquidity, flow, and credibility. And put their names behind the idea that this market deserves and needs a second venue. To LCH, a genuinely unique partner, and one that offers real capital efficiency to our clients. And finally, to those clients, many of whom took a chance on a smaller, newer venue before it was obvious. We have not forgotten who is there for us at the beginning. For those of you who are here as investors in BGC, I implore you to use the next few hours to determine the viability of a challenger in this market.

Judge FMX on the four things that actually determine whether a challenger can win. It's connectivity, technology, clearing, and ultimately market share. You will hear about all four of those this afternoon, from us and from the firms that use the platform. Please ask the hard questions where you feel you need further explanation. Competition in this market arrives one client at a time. It comes when clients choose a second venue that offers better service, better technology, and economics. Exactly the way we did in the cash treasury market. Today is your chance to look at FMX closely and judge for yourselves. One last thing, and then I promise I'll hand it over. We close today with a keynote conversation with Professor Geoffrey Hinton. In addition to being widely accepted as the godfather of AI, Professor Hinton knows a thing or two about persevering through adversity and doubt. For decades, Professor Hinton pursued his dream of artificial intelligence and building neural networks when those around him told him it couldn't be done. In 2018, Professor Hinton was rewarded for such perseverance by winning the Turing Award. And then in 2024, Professor Hinton won the Nobel Prize in Physics. Making him only the second person to ever win both awards.

It is my great honor to welcome Professor Hinton and it's with great anticipation that Mark Ronaldo, the COO of FMX, and I look forward to having this conversation. After our conversation with Professor Hinton, there's a cocktail reception just outside this room. Please stay, have a drink, and ask any of the questions you might not have wanted to ask in the microphone. Thank you again for being here. We have a lot to show you today. And with that, please join me in welcoming Lou Scotto, the CEO of FMX.

Wow. John said a lot of what I was going to say. But I will say yes. To something he did say, and I'll tell you later what the yes was to. This is cool. All these people came out to acknowledge FMX. I'm excited. You excited? You need him to be excited. That's the COO. He I'm the I'm kind of like the front guy. He's the guy making it happen. But I want to take you back a little bit. Why is FMX here? You know, the inspiration for FMX and I love to say it was me but it wasn't it was two words: Howard Lutnick. Calls me in 2018, "Let's go. We're going to go into the electronic marketplace again in government securities and FX." Okay? So we both sat there and said, "Why?" Competition's an issue. So when competition is an issue, things become stale. There was no change from the time Howard Lutnick and eSpeed came into the market in the mid-'90s in government securities electronically and at that point, in terms of the way it was trading. It was the same. And we knew one thing. Even though there were four competitors in there, one had about 85 percent of the market.

That person wasn't being challenged because you can't follow that person and expect success. You have to change the dynamics of what you're planning to do in order to introduce a viable alternative. And that's what the marketplace needed. If they didn't know they needed it, you should have been on the trading desk like maybe Rob Allen was in or Eric in mid-January 2019 when markets closed. Why? One relevant pricing engine is down. Think about that for a second. You have choices in everything in life. Here is a dependency on the most important market or at least one of the most important markets, and the markets close for business. You want to price anything? You want to price a deal? You want to price anything? You can't. So not because I became more charming or pipeline vastly grew on the next day in 2019. And you'll see that on the charts. Because the marketplace realized we had come into the market and we had a relevance that they thought could bring us forward and be a competitor. So FedEx US Treasuries and FedEx FX, okay, those were the inspiration of Howard Lutnick. And the important thing to remember in all of these are you have to have competition.

John talked about that. It was no more relevant than on that one day in 2019. When the marketplace said, "Oh boy, we have an issue." An issue that got created by the market because they didn't insist on having competition in there. So that was the birth of what US Treasuries and FX was all about. Now let's talk about what FX is. It is a platform servicing five markets and 10 products. It includes Treasuries, and we've expanded from our initial government security benchmarks to Treasury bills and off the runs. We are the only platform that allows you to electronically execute off the run Treasury bonds. And we see this potential as enormous because we think eventually as the clients, the banks adapt and understand and use it, it will become an important vehicle for them to trade with their client base. Using the FMX technology. Our inflation bonds, which is both oops, oops. Whoa. There you go. I don't have enough issues here. We have inflation bonds, inflation swaps. We now have them firmly on the FMX platform. We were able to roll out a club competitor. The only one that had it was BrokerTech, the affiliate of CME.

And now within less than a year and a half, we are 35 percent of that market and growing. Our overnight repo we have rolled out. We think that that is going to be an important product going forward. As we look to now bring on the first ever electronification of the repo market in term repo in a segment of term repo which we have the capability of doing. And our competition doesn't because we have the BGC infrastructure of the desks that actually trade that. So we're working diligently on expanding our repo offering beyond overnights to term. Foreign exchange, we do both spot and NDFs. And we are vastly growing our capability there. We've made a couple of important hires over the last few months. And we're excited about the growth of that platform as well. And finally, what you all hear to understand what John was talking about, the need and interest rate futures for a viable competitor is even senior to the need that they need in the US Treasury cash market. Where they have 100 percent of the market. So we have two markets. One had 85 almost 85 percent of the market. The other one has 100 percent of the market.

And we'll see later how the first one's going and we'll talk I'm sure a lot about where we're going with the second. So let's take you through the timeline. I kind of touched on the pre-2021 when we orchestrated the US Treasury FedEx development. And then in 2021, we have an important piece for success for futures. And one of them is our partnership with the largest clearing capability company LCH, which pretty much is the dominant player in clearing of interest rate swaps. In January 2024, we went through a process that was pretty challenging. To get clear we didn't have a lot of fans, as you might imagine, from the competitive landscape. And you can figure out there was only one. So we really worked really hard to get that accomplished. And we did. And then in April of 2024, this one I'll pause on. The relevance that we created up to 2022 or brought the discussions to us from these major banks and liquidity providers about getting serious in terms of competing in futures. If we did not have that basic relevance in the cash market, if we weren't an established platform at that point in 2022, we're probably 20 plus percent of the market.