GFI Group Inc. Announces Second Quarter 2010 Results; Declares Quarterly Cash Dividend

Revenues: $209.6 Million; Non-GAAP Revenues: $208.5 Million

NEW YORK, NY, Aug 02, 2010 (MARKETWIRE via COMTEX) — GFI Group Inc. (NASDAQ: GFIG), a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, today announced financial results for the second quarter ended June 30, 2010.

 

Highlights

--  Total revenues for the second quarter of 2010 decreased 7% to
    $209.6 million compared with $224.7 million in the second quarter of
    2009. On a non-GAAP basis, total revenues declined 5% to $208.5 million
    in the second quarter of 2010 from $220.5 million in the second quarter
    of 2009, excluding mark-to-market unrealized gains on forward hedges of
    future foreign currency revenues in both periods.
--  Brokerage revenues for the second quarter of 2010 declined 3% to
    $194.2 million compared with $201.1 million in the second quarter of
    2009.
--  Compensation and employee benefits expense in the second quarter of
    2010 was 67.3% of total revenues on a GAAP basis and 67.7% on non-GAAP
    basis. This compares with 65.2% of total revenues on a GAAP basis and
    66.5% of total revenues on a non-GAAP basis in the second quarter of
    2009.
--  Non-compensation expenses were 25.8% of total revenues on a GAAP basis
    and 24.4% on a non-GAAP basis in the second quarter of 2010. This
    compares with 23.1% of total revenues on a GAAP basis and 22.9% on a
    non-GAAP basis in the second quarter of 2009.
--  Net income for the second quarter of 2010 was $10.4 million, or $0.08
    per diluted share, compared with $16.4 million, or $0.13 per diluted
    share, in the second quarter of 2009. On a non-GAAP basis, net income
    was $12.0 million, or $0.10 per diluted share, for the second quarter
    of 2010, compared with $14.6 million, or $0.12 per diluted share, in
    the second quarter of 2009.

 

Michael Gooch, Chairman and Chief Executive Officer of GFI, commented: “Our second quarter brokerage revenues were 3% lower than the same quarter last year as strong growth in commodity and financial products was offset by lower revenues from fixed income and equity products. When combined with our performance in the first quarter of 2010, however, our brokerage revenues for the first half of 2010 matched those of the first half of 2009.

“We were aided in the second quarter of 2010 by the continued stabilization of key markets, with intermittent periods of market volatility, the success of new products, and increased trading activity on our electronic brokerage platforms. However, we also faced a fall off in market trading volumes in June, heightened competition for brokerage personnel in certain fixed income markets, and continued uncertainty surrounding the impact of the financial reform legislation on the OTC markets.

“Within our fixed income product category, we saw continued strong year-over-year growth in revenues from fixed income derivatives, which increased 23% from the second quarter of 2009. This was offset by a decline in our revenues from cash fixed income products, which were down 49% from the second quarter of 2009 and 26% from the first quarter of 2010. While narrower credit spreads and lower bond issuance were factors globally, the decline was mainly due to increased competition as re-capitalized dealers in the U.S. rebuilt their sales teams.

“Equity product revenues were 5% lower than the second quarter of 2009 and 2% lower sequentially. Strong growth in revenues from Europe, especially from our Paris office, in cash equities and equity derivatives, was offset by lower revenues from the Americas.

“Our revenues from financial products continued to recover in the second quarter of 2010, especially in emerging markets and Asia, resulting in a 17% increase over the second quarter of 2009 and a 3% increase sequentially.

“Commodity product revenues rose 26% from the second quarter of 2009 and 1% from the first quarter of 2010. The growth was attributable to better market conditions in certain commodity categories, including shipping, electricity and natural gas, as well as from new products.

“Although compensation and employee benefits expense was higher as a percentage of revenues, it was 4% lower in total than in the second quarter of 2009 and 2% lower than in the first quarter of 2010, on both a GAAP and non-GAAP basis. We are investing for the future by adding brokerage personnel in targeted product categories and geographies.

“Non-compensation expenses were 4% higher than the second quarter of 2009, but 3% lower than the first quarter of 2010 on a GAAP basis and included professional fees related to our acquisition of Kyte and other strategic business development projects in the second quarter of 2010. On a non-GAAP basis, they increased 1% over the year-ago quarter and decreased 7% sequentially. We remain focused on controlling expenses.

“Through our acquisition of London-based Kyte, which was completed July 1, we continue to build for the future. Kyte, which is a leading provider of clearing, risk management, settlement and other back-office services and capital to its target markets, expands our product coverage into a broader array of exchange-traded products, adds expertise and capability in risk management, and continues to expand our business beyond our traditional inter-dealer broker services.

“We are optimistic that the recently enacted Dodd-Frank Act will generally be beneficial to the long-term health of the broader financial markets. The legislation requires certain OTC derivatives to be executed through a registered exchange or swap execution facility. We expect that we will qualify as a swap execution facility and that our product expertise, proven technology, depth of liquidity and long-standing relationships will position us well to capture any newly created opportunities in these markets.

“Looking at our preliminary brokerage revenues for July, excluding Kyte, revenues are tracking down approximately 10% compared with revenues for the same month last year as the lower trading volumes of June carried into the first few weeks of July.

Mr. Gooch concluded: “Despite the slow start to the quarter, we enter the second half of 2010 intent on increasing our product and geographic diversity, furthering our technology advantages and acting on new market opportunities. We are pleased to declare a quarterly cash dividend to our shareholders.”

Revenues

For the second quarter of 2010, total revenues were $209.6 million on a GAAP basis and $208.5 million on a non-GAAP basis. This compares with total revenues of $224.7 million on a GAAP basis and $220.5 million on a non-GAAP basis in the second quarter of 2009. The non-GAAP amounts in both periods exclude mark-to-market unrealized gains on forward hedges of future foreign currency revenues, totaling $1.1 million in the second quarter of 2010 and $4.2 million in the second quarter of 2009. There was a net decrease of $8.2 million in non-brokerage revenues in the second quarter of 2010 from the second quarter of 2009 on a GAAP basis, largely related to the re-measurement of foreign currency transactions and balances.

Brokerage revenues in the second quarter of 2010 were $194.2 million compared with $201.1 million in the second quarter of 2009. Revenues from commodity products and financial products increased 26% and 17% respectively, while revenues from fixed income products and equity products decreased 25% and 5%, respectively, from the second quarter of 2009. By geographic region, brokerage revenues for the second quarter of 2010 increased 21% in Asia-Pacific and 6% in EMEA but decreased 18% in the Americas compared with the second quarter of 2009.

Revenues from trading software, analytics and market data products for the second quarter of 2010 were $14.5 million, an increase of 12% from the second quarter of 2009.

Expenses

For the second quarter of 2010, compensation and employee benefits expense was $141.1 million compared with $146.6 million in the second quarter of 2009, on a GAAP and non-GAAP basis. Compensation and employee benefits expense was 67.3% of total revenues on a GAAP basis and 67.7% on a non-GAAP basis in the second quarter of 2010, compared with 65.2% of total revenues on a GAAP basis and 66.5% on a non-GAAP basis, in the second quarter of 2009.

On a GAAP basis, non-compensation expenses for the second quarter of 2010 were $54.1 million or 25.8% of total revenues compared with $51.8 million or 23.1% of total revenues in the second quarter of 2009. On a non-GAAP basis, non-compensation expenses for the second quarter of 2010 were $50.8 million or 24.4% of total revenues, excluding $1.9 million of fees largely related to the Company’s acquisition of Kyte, which was completed July 1, 2010, and $1.4 million in intangible asset amortization. This compares with $50.5 million or 22.9% of total revenues in the second quarter of 2009, excluding $1.4 million in intangible asset amortization.

The effective tax rate for the first half of 2010 was 31% on a GAAP and non-GAAP basis compared with 37% in the first half of 2009. The reduction in the effective tax rate in comparison to the first six months of 2009 is due to a shift in the geographic mix of earnings towards jurisdictions with lower tax rates.

Earnings

Net income for the second quarter of 2010 was $10.4 million, or $0.08 per diluted share, compared with net income of $16.4 million, or $0.13 per diluted share, in the second quarter of 2009. On a non-GAAP basis, net income for the second quarter of 2010 was $12 million, or $0.10 per diluted share, compared with $14.6 million or $0.12 per diluted share for the second quarter of 2009.

Six-Month Results

For first six months of 2010, total GAAP revenues were $430.4 million compared with $440.9 million for same period of 2009. GAAP net income for the first half of 2010 was $23.8 million or $0.19 per diluted share compared to $28.0 million or $0.23 per diluted share for the first half of 2009. On a non-GAAP basis, total revenues for the first six months of 2010 were $429.4 million compared with $432.8 million for the first half of 2009, while net income was $26.3 million or $0.21 per diluted share compared with $27.5 million or $0.23 per diluted share for the first six months of 2009.

Recent Event – Kyte Acquisition Completed

GFI completed the acquisition of Kyte Group Limited and Kyte Capital Management Limited (collectively “Kyte”) on July 1, 2010 for an initial purchase price of GBP 37.9 million ($57.6 million). The purchase price consists of GBP 22.4 million ($34 million) in cash and the issuance of 4.2 million shares of GFI Group Inc. common stock (1.3 million shares of which are to be issued upon the resolution of certain contingencies) for 70% of the equity interests of Kyte. GFI will purchase the residual 30% equity interest in Kyte for an amount that will be calculated based on Kyte’s performance during the three years ended June 30, 2013. The final initial purchase price will be subject to various adjustments, including the amount of Kyte’s surplus working capital at closing and the satisfaction of certain legal, financial and other criteria. For Kyte’s fiscal year ended March 31, 2010, the combined Kyte companies had GBP 129.6 million in revenues and GBP 13.9 million in gross profit on a UK GAAP basis. The Kyte companies also realized GBP 6.8 million in pre-tax income, after adjusting for income due to non-controlling interests in the various Kyte operating subsidiaries.

Non-GAAP Financial Measures

To supplement GFI’s unaudited financial statements presented in accordance with GAAP, the Company uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by GFI include non-GAAP revenues, non-GAAP net income and non-GAAP diluted earnings per share. These non-GAAP financial measures currently exclude amortization of acquired intangibles and certain other items that management views as non-operating or non-recurring from the Company’s statement of income as detailed below.

In addition, GFI may consider whether other significant non-operating or non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses. The non-GAAP financial measures also take into account income tax adjustments with respect to the excluded items.

GFI believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of the Company’s core business, operating results or future outlook. GFI’s management uses, and believes that investors benefit from referring to these non-GAAP financial measures in assessing the Company’s operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company’s performance to prior periods.

In addition to the reasons stated above, which are generally applicable to each of the items GFI excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude amortization of acquired intangibles because when analyzing the operating performance of an acquired business, GFI’s management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity as compared to the purchase price paid) without taking into consideration any charges for allocations made for accounting purposes. Further, because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets, when analyzing the operating performance of an acquisition in subsequent periods, the Company’s management excludes the GAAP impact of acquired intangible assets on its financial results. GFI believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.

Set forth below is specific detail regarding items excluded in our non-GAAP financial measures. A reconciliation of the non-GAAP to GAAP figures follows this press release.

In the second quarter of 2010, the difference between GAAP and non-GAAP revenues was $1.1 million and the difference between the GAAP net income and non-GAAP net income was $1.6 million and reflected for non-GAAP purposes:

--  The exclusion from revenues of a $1.1 million mark-to-market unrealized
    gain on forward hedges of future foreign currency revenues;
--  The exclusion of $1.4 million of amortization on all acquired
    intangible assets;
--  The exclusion of $1.9 million of professional fees related to the
    acquisition of Kyte completed on July 1, 2010 and other business
    development projects; and
--  The effect of adjusting for these items would increase the Company's
    income tax expense by $0.6 million.

 

In the second quarter of 2009, the difference between GAAP and non-GAAP revenues was $4.2 million and the difference between GAAP and non-GAAP net income was ($1.8) million and reflected for non-GAAP purposes:

--  The exclusion from revenues of a $4.2 million mark-to-market unrealized
    gain on forward hedges of future foreign currency revenues;
--  The exclusion of $1.4 million of amortization on all acquired
    intangible assets; and
--  The effect of adjusting for these items would decrease the Company's
    income tax expense by $1.1 million.

 

In the first six months of 2010, the difference between GAAP and non-GAAP revenue was $1.0 million and the difference between GAAP and non-GAAP net income was $2.5 million and reflected for non-GAAP purposes:

--  The exclusion from revenues of $1.0 million mark-to-market unrealized
    gains on forward hedges of future foreign currency revenues;
--  The exclusion of $2.8 million of amortization on all acquired
    intangible assets;
--  The exclusion of $1.9 million of professional fees related to the
    acquisition of Kyte and other business development projects; and
--  The effect of adjusting for these items would increase the Company's
    income tax expense by $1.1 million.

 

In the first six months of 2009, the difference between GAAP and non-GAAP revenue was $8.1 million and the difference between GAAP and non-GAAP net income was ($0.4) million and reflected for non-GAAP purposes:

--  The exclusion from revenues of:
    --  $7.4 million mark-to-market unrealized gains on forward hedges of
        future foreign currency revenues; and
    --  a $0.7 million gain on the Company's exchange of its investment in
        The Clearing Corporation for an investment in a holding company of
        ICE Trust;
--  The exclusion of $2.7 million of amortization on all acquired
    intangible assets;
--  The exclusion of $4.6 million related to severance and other
    restructuring initiatives, including an $0.8 million charge relating to
    the termination of a joint venture; and
--  The effect of adjusting for these items would decrease the Company's
    income tax expense by $0.3 million.

 

Dividend Declaration

The Board of Directors of GFI Group has declared a quarterly cash dividend of $0.05 per share payable on August 31, 2010 to shareholders of record on August 17, 2010.

Conference Call

GFI has scheduled an investor conference call to discuss the results at 8:30 a.m. (Eastern Time) on Tuesday, August 3. Those wishing to listen to the live conference call via telephone should dial 866-730-5796 in North America, passcode 52171416; and +1 857-350-1593 in Europe, same passcode.

A live audio web cast of the conference call will be available on the Investor Relations section of GFI’s Website. For web cast registration information, please visit: http://www.gfigroup.com. Following the conference call, an archived recording will be available at the same site.

Supplementary Financial Information

GFI Group has posted details of its historical monthly brokerage revenues on the Investor Relations page of its web site under the heading Supplementary Financial Information. The Company currently plans to post this information quarterly in conjunction with its announcement of earnings, but does not undertake a responsibility to continue to provide or update such information.

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NASDAQ: GFIG) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,800 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Dublin, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet(R), CreditMatch(R), GFI ForexMatch(R), EnergyMatch(R), FENICS(R), Starsupply(R), Amerex(R), Trayport(R) and Kyte(R).

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

– FINANCIAL TABLES FOLLOW –

=IR=

                      GFI Group Inc. and Subsidiaries
              Consolidated Statements of Income (unaudited)
              (In thousands except share and per share data)
                        ------------------------  ------------------------
                           Three Months Ended         Six Months Ended
                                June 30,                  June 30,
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------
REVENUES:
  Brokerage revenues:
   Agency commissions   $   137,624  $   121,488  $   281,454  $   246,887
   Principal
    transactions             56,526       79,566      116,822      151,781
                        -----------  -----------  -----------  -----------
    Total brokerage
     revenues               194,150      201,054      398,276      398,668
  Software, analytics
   and market data           14,519       13,019       29,419       26,071
  Interest income                77          226          317          723
  Other income                  842       10,367        2,351       15,439
                        -----------  -----------  -----------  -----------
   Total revenues           209,588      224,666      430,363      440,901
                        -----------  -----------  -----------  -----------
EXPENSES:
  Compensation and
   employee benefits        141,109      146,575      285,772      292,123
  Communications and
   market data               10,695       11,240       22,581       22,738
  Travel and promotion        9,341        8,550       18,234       16,030
  Rent and occupancy          5,255        4,778       10,686        9,512
  Depreciation and
   amortization               7,844        8,015       16,028       15,854
  Professional fees           6,247        4,129       12,844        9,220
  Clearing fees               7,554        8,106       14,978       16,213
  Interest                    2,730        2,657        5,305        5,126
  Other expenses              4,434        4,366        9,442        9,710
                        -----------  -----------  -----------  -----------
   Total expenses           195,209      198,416      395,870      396,526
                        -----------  -----------  -----------  -----------
                        -----------  -----------  -----------  -----------
INCOME BEFORE PROVISION
 FOR INCOME TAXES            14,379       26,250       34,493       44,375
                        -----------  -----------  -----------  -----------
PROVISION FOR INCOME
 TAXES                        3,955        9,894       10,693       16,419
                        -----------  -----------  -----------  -----------
NET INCOME              $    10,424  $    16,356  $    23,800  $    27,956
                        ===========  ===========  ===========  ===========
Basic earnings per
 Share                  $      0.09  $      0.14  $      0.20  $      0.24
                        ===========  ===========  ===========  ===========
Diluted earnings per
 share                  $      0.08  $      0.13  $      0.19  $      0.23
                        ===========  ===========  ===========  ===========
Weighted average shares
 outstanding - basic    119,593,107  117,928,484  119,102,754  118,145,154
Weighted average shares
 outstanding - diluted  123,750,775  121,169,884  123,308,715  120,787,335
                       GFI Group Inc. and Subsidiaries
                Consolidated Statements of Income (unaudited)
                       As a Percentage of Total Revenues
                           Three Months Ended         Six Months Ended
                                June 30,                  June 30,
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------
REVENUES:
  Brokerage revenues:
   Agency commissions          65.7%        54.1%        65.4%        56.0%
   Principal
    transactions               27.0%        35.4%        27.1%        34.4%
                        -----------  -----------  -----------  -----------
    Total brokerage
     revenues                  92.7%        89.5%        92.5%        90.4%
  Software, analytics
   and market data              6.9%         5.8%         6.8%         5.9%
  Interest income               0.0%         0.1%         0.1%         0.2%
  Other income                  0.4%         4.6%         0.6%         3.5%
                        -----------  -----------  -----------  -----------
   Total revenues             100.0%       100.0%       100.0%       100.0%
                        -----------  -----------  -----------  -----------
EXPENSES:
  Compensation and
   employee benefits           67.3%        65.2%        66.4%        66.3%
  Communications and
   market data                  5.1%         5.0%         5.2%         5.2%
  Travel and promotion          4.5%         3.8%         4.2%         3.6%
  Rent and occupancy            2.5%         2.1%         2.5%         2.2%
  Depreciation and
   amortization                 3.7%         3.6%         3.7%         3.6%
  Professional fees             3.0%         1.8%         3.0%         2.1%
  Clearing fees                 3.6%         3.6%         3.5%         3.7%
  Interest                      1.3%         1.2%         1.2%         1.2%
  Other expenses                2.1%         2.0%         2.2%         2.2%
                        -----------  -----------  -----------  -----------
   Total expenses              93.1%        88.3%        91.9%        90.1%
                        -----------  -----------  -----------  -----------
                        -----------  -----------  -----------  -----------
INCOME BEFORE PROVISION
 FOR INCOME TAXES               6.9%        11.7%         8.1%         9.9%
                        -----------  -----------  -----------  -----------
PROVISION FOR INCOME
 TAXES                          1.9%         4.4%         2.5%         3.7%
                        -----------  -----------  -----------  -----------
NET INCOME                      5.0%         7.3%         5.6%         6.2%
                        ===========  ===========  ===========  ===========
                      GFI Group Inc. and Subsidiaries
                    Selected Financial Data (unaudited)
                          (Dollars in thousands)
                                    Three Months Ended   Six Months Ended
                                         June 30,            June 30,
                                      2010      2009      2010      2009
                                    --------- --------- --------- ---------
Brokerage Revenues by Product
 Categories:
  Fixed Income                      $  60,810 $  81,088 $ 132,294 $ 155,492
  Financial                            39,123    33,405    77,233    64,496
  Equity                               46,587    48,853    94,153   102,247
  Commodity                            47,630    37,708    94,596    76,433
                                    --------- --------- --------- ---------
     Total brokerage revenues       $ 194,150 $ 201,054 $ 398,276 $ 398,668
                                    ========= ========= ========= =========
Brokerage Revenues by Geographic
 Region:
  Americas                          $  72,483 $  88,511 $ 149,884 $ 178,048
  Europe, Middle East, and Africa     101,462    95,904   209,339   189,210
  Asia-Pacific                         20,205    16,639    39,053    31,410
                                    --------- --------- --------- ---------
     Total brokerage revenues       $ 194,150 $ 201,054 $ 398,276 $ 398,668
                                    ========= ========= ========= =========
                                    June 30, December 31,
                                      2010       2009
                                    --------- ---------
Consolidated Statement of Financial
 Condition Data:
  Cash and cash equivalents         $ 318,080 $ 342,379
  Total assets (1)                  1,159,887   952,094
  Total debt, including current
   portion                            164,136   173,688
  Stockholders' equity                503,228   484,102
Selected Statistical Data:
  Brokerage personnel headcount (2)     1,116     1,082
  Employees                             1,847     1,768
  Broker productivity for the
   period (3)                       $     176 $     155
(1) Total assets include receivables from brokers, dealers and clearing
    organizations of $294.0 million and $87.7 million at June 30, 2010 and
    December 31, 2009, respectively. These receivables primarily represent
    securities transactions entered into in connection with our matched
    principal business which have not settled as of their stated settlement
    dates. These receivables are substantially offset by corresponding
    payables to brokers, dealers and clearing organizations for these
    unsettled transactions.
(2) Brokerage personnel headcount includes brokers, trainees and clerks.
(3) Broker productivity is calculated as brokerage revenues divided by
    average monthly brokerage personnel headcount for the quarter.
                      GFI Group Inc. and Subsidiaries
    Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
              (In thousands except share and per share data)
                           Three Months Ended         Six Months Ended
                                June 30,                  June 30,
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------
GAAP revenues           $   209,588  $   224,666  $   430,363  $   440,901
 Gain on exchange of
  cost-method
  investments (a)                 -            -            -         (697)
 Mark-to-market
  (gain)/loss on forward
  hedges of future foreign
  currency revenues (a)      (1,095)      (4,178)        (997)      (7,420)
                        -----------  -----------  -----------  -----------
 Total Non-GAAP Revenues    208,493      220,488      429,366      432,784
GAAP expenses               195,209      198,416      395,870      396,526
Non-operating
 adjustments:
 Amortization of
  intangibles                (1,430)      (1,356)      (2,827)      (2,728)
 Professional fees for
  business development
  activities                 (1,860)           -       (1,860)           -
 Severance and other
  restructuring                   -            -            -       (4,644)
                        -----------  -----------  -----------  -----------
    Total Non-GAAP
     adjustments (a)         (3,290)      (1,356)      (4,687)      (7,372)
                        -----------  -----------  -----------  -----------
Non-GAAP operating
 expenses                   191,919      197,060      391,183      389,154
GAAP income before
 provision for income
 taxes                       14,379       26,250       34,493       44,375
Sum of Non-GAAP items =
 (a)                          2,195       (2,822)       3,690         (745)
                        -----------  -----------  -----------  -----------
Non-GAAP income before
 tax provision               16,574       23,428       38,183       43,630
GAAP provision for
 income taxes                 3,955        9,894       10,693       16,419
Income tax impact on
 Non-GAAP items (b)             642       (1,064)       1,143         (316)
                        -----------  -----------  -----------  -----------
Non-GAAP provision for
 income taxes                 4,597        8,830       11,836       16,103
GAAP net income              10,424       16,356       23,800       27,956
Sum of Non-GAAP
 adjustments
 [ (a) - (b) ]                1,553       (1,758)       2,547         (429)
                        -----------  -----------  -----------  -----------
Non-GAAP net income     $    11,977  $    14,598  $    26,347  $    27,527
                        ===========  ===========  ===========  ===========
GAAP basic net income
 per share              $      0.09  $      0.14  $      0.20  $      0.24
Basic non-operating
 income/(loss) per share       0.01        (0.02)        0.02        (0.01)
                        -----------  -----------  -----------  -----------
Non-GAAP basic net
 income per share       $      0.10  $      0.12  $      0.22  $      0.23
                        ===========  ===========  ===========  ===========
GAAP diluted net income
 per share              $      0.08  $      0.13  $      0.19  $      0.23
Diluted non-operating
 income/(loss) per share       0.02        (0.01)        0.02            -
                        -----------  -----------  -----------  -----------
Non-GAAP diluted net
 income per share       $      0.10  $      0.12  $      0.21  $      0.23
                        ===========  ===========  ===========  ===========
Weighted average
 Non-GAAP shares
 outstanding - basic    119,593,107  117,928,484  119,102,754  118,145,154
Weighted average
 Non-GAAP shares
 outstanding - diluted  123,750,775  121,169,884  123,308,715  120,787,335

SOURCE: GFI Group

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GFI Group’s Michael Cosgrove To Serve On Key CFTC Committee

Mr. Cosgrove to participate in the Technology Advisory Committee

New York July 22, 2010 – GFI Group (NASDAQ: “GFIG”) has announced today that Michael Cosgrove has been invited to serve on the US Commodity Futures Trading Commission’s “CFTC” Technology Advisory Committee “TAC”.

Mr. Cosgrove is a Managing Director at GFI Group responsible for directing the firm’s strategic initiatives in the North American commodities and energy sectors.

The Technology Advisory Committee was created in 1999 to advise the CFTC on the impact and implications of technological innovations on financial services and the futures markets, and the appropriate legislative and regulatory response to increasing use of technology in the markets.

CFTC Commissioner Scott D. O’Malia chairs the Technology Advisory Committee.  Members include representatives of futures exchanges, self-regulatory organizations, financial intermediaries, market participants, and traders.

The Committee’s first meeting, titled “Technological Trading in the Markets”, was held July 14th 2010. It addressed the topics of algorithmic and high frequency trading.

The first reconstituted TAC meeting coincides with discussions regarding the market events that took place last May 6th as well as with the major financial reform bill signed into law by the President July 21, 2010.

 About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NASDAQ: “GFIG”) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Dublin, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,100 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI SM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, and Trayport®.

Forward-looking statement 
Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

GFI Group Announces Senior Management Changes in Commodities and Energy

Richard Giles Appointed Managing Director

NEW YORK, NY, Jul 12, 2010 (MARKETWIRE via COMTEX) —

GFI Group Inc. (NASDAQ: GFIG), a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, today announced changes to its senior management team.

 

Richard Giles was appointed Managing Director and Head of Commodities and Energy Brokerage, North America. Mr. Giles will be based in GFI’s New York office and takes over from Michael Cosgrove.

Michael Cosgrove remains a Managing Director at GFI Group and will be responsible for directing the firm’s strategic initiatives in the North American commodities and energy sectors.

“Richard has been a very significant contributor to our success. His experience across asset classes combined with his strong management and financial skills will be of tremendous help in continuing the strong growth of GFI’s North American commodities and energy business,” said Colin Heffron, GFI Group President. “Richard is replacing Michael Cosgrove, who will now focus on strategic undertakings in the commodities and energy space. We wish to compliment Michael on his important contributions to the Company and wish him every success in executing new strategic initiatives for GFI.”

GFI and its subsidiaries in North America provide brokerage services in a wide range of energy & commodity products such as electricity, coal, natural gas, biofuels, refined and crude oil, freight derivatives, precious and base metals, emissions and property derivatives through their offices in New York, Englewood NJ (Starsupply) and Sugar Land (Amerex).

The Company’s hybrid business strategy features experienced brokers supported by advanced technology offering both electronic and broker-assisted execution. In North America, GFI operates EnergyMatch(R), an online energy trading platform.

GFI’s energy and commodity brokerage operations are renowned for their excellence, winning No.1 Energy & Commodity Broker overall for 2010 in Energy Risk & Risk magazine’s annual Commodity Rankings 2010.

Background Information Michael Cosgrove Mr. Cosgrove started his career with Amerex Oil Associates in 1981 as a broker of international crude oil. In 1986, Mr. Cosgrove became a partner and Managing Director of Amerex’s European operations. During the next 20 years Mr. Cosgrove expanded Amerex’s business globally until in 2006 it comprised 250 employees serving a broad range of international energy and petroleum markets. In 2006 Mr. Cosgrove joined GFI in connection with GFI’s purchase of the Amerex North American businesses. In 2004, Mr. Cosgrove was named in the Energy Risk Hall of Fame. Mr. Cosgrove was Managing Director and Head of Commodities & Energy Brokerage for GFI from July 2008 to July 2010.

Richard Giles Mr. Giles previously served as Head of Credit for GFI Group in the United Kingdom where he looked after all of GFI’s credit business in London including single-name credit default swaps, credit indices, corporate and high yield bonds, leveraged loans and structured credit, including index tranches. Mr.Giles joined GFI in 1993 and has worked in currency options, energy and credit in both Hong Kong and London.

About GFI Group Inc. www.GFIgroup.com GFI Group Inc. (NASDAQ: GFIG) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Dublin, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI(SM), GFInet(R), CreditMatch(R), GFI ForexMatch(R), EnergyMatch(R), FENICS(R), Starsupply(R), Amerex(R), and Trayport(R).

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: GFI Group Inc

GFI Group Inc. to Acquire The Kyte Group Limited and Kyte Capital Management Limited, Providers of Clearing, Broking, Investment Services and Seed Capital to Financial Market Traders

Acquisition Strengthens GFI’s Position Within Exchange-Traded Markets and Enhances Its Service Offerings

NEW YORK, NY, Jun 21, 2010 (MARKETWIRE via COMTEX) –GFI Group Inc. (NASDAQ: GFIG) (“GFI”) announced today that it has agreed to acquire The Kyte Group Limited (“KGL”) and Kyte Capital Management (“KCM”) (together “Kyte”). Kyte, which is a member of leading exchanges including NYSE Euronext, NYSE LIFFE and Eurex, provides clearing, broking, settlement and back-office services to proprietary traders, brokers, market makers and hedge funds. In addition, Kyte provides seed capital to start-up trading groups, small hedge funds, market-makers and individual sole traders.

Kyte, a privately held company, was established in London in 1985 by David Kyte. For Kyte’s fiscal year ended March 31, 2009, the combined Kyte companies had ?115.4 million in revenues, ?22.5 million in gross profit and ?11.7 million in pre-tax profit, on a UK GAAP basis, excluding noncontrolling interests. For Kyte’s fiscal year ended March 31, 2010, pre-tax profit is preliminarily expected to be between ?6.0 and ?7.0 million on a UK GAAP basis after excluding noncontrolling interests.

Kyte has established a reputation as one of the leading providers of clearing, risk management and settlement services in its target markets. Kyte’s customers are able to use Kyte’s exchange memberships in order to trade exchange listed, traditional and alternative investment instruments including financial futures and options, cash stocks, cash bonds, warrants, foreign exchange and commodity derivatives.

Upon the closing of the transaction, GFI expects to pay approximately GBP 38.3 million, subject to the adjustments described below, to acquire a 70% equity ownership interest in Kyte. The purchase price will be made up of approximately ?22.4 million in cash, financed from GFI’s internal cash resources, and shares of GFI common stock with an approximate value of ?15.9 million. The final purchase price will be subject to various adjustments, based on the price of GFI stock and the amount of Kyte’s surplus capital at closing and the satisfaction of certain legal, financial and other criteria. In addition, GFI will acquire the residual 30% equity interest in Kyte and its affiliates for a further cash payment, which will be calculated based on the performance of Kyte during the three year period ending June 30, 2013. GFI anticipates the transaction will be accretive to non-GAAP earnings in the calendar year of 2010.

Michael Gooch, Chairman and Chief Executive Officer of GFI, commented: “We believe the acquisition of Kyte and, in particular, its expertise in the listed derivatives markets and its proven risk management and clearing platforms, will position GFI well in an environment favoring standardized, exchange traded products. David Kyte is a highly respected entrepreneur in the London trading community and we are delighted to be bringing his innovative business into the GFI group of companies.”

David Kyte, Founder of Kyte, said: “Teaming up with GFI will allow Kyte to benefit from GFI’s greater scale and resources and position Kyte to profit from attractive growth opportunities in its core markets in the future.”

The transaction, which has been approved by the Financial Services Authority (FSA), is expected to close in July 2010 upon satisfaction of certain customary conditions.

About GFI Group Inc. www.gfigroup.com

GFI Group Inc. (NASDAQ: GFIG) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Dublin, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI(SM), GFInet(R), CreditMatch(R), GFI ForexMatch(R), EnergyMatch(R), FENICS(R), Starsupply(R), Amerex(R), and Trayport(R).

About Kyte

KGL (www.kytegroup.com) provides clearing and settlement services to professional ‘expert’ traders who transact business on the world’s leading exchanges. KGL offers clearing services, risk management, financing and direct market access to proprietary traders, brokers, market makers and hedge funds. KGL provides comprehensive market access to exchange-listed, traditional and alternative investment instruments including financial futures and options, cash stocks, cash bonds, warrants, Forex and commodity derivatives. KGL consistently ranks in the top 5 companies on NYSE LIFFE and in the top 20 on Eurex by volume traded.

KGL and its subsidiaries, Kyte Broking Limited and Kyte Capital Advisors LLP, are separately authorised and regulated by the Financial Services Authority.

KCM (www.kytecapital.com) is an investment vehicle that provides seed capital to start-up trading groups, small hedge funds, market-makers, individual sole traders and developers of algorithmic trading systems.

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: GFI Group

Leading Israeli Mizrahi Tefahot Bank selects GFI Fenics Professional™

GFI Group expands FX footprint in Israel

New York, May 24, 2010 – GFI Group (NASDAQ: “GFIG”) announced today that Mizrahi Tefahot Bank of Israel has deployed FENICS Professional™ forpricing and risk management of its FX options business. Mizrahi Tefahot Bank, one of the leading banks in Israel in the field of FX trading, derivatives and options, has been a client of GFI FENICSsm since 1998.

Mr. Doron Levy, Dealing Room Manager at Mizrahi Tefahot Bank of Israel said: “We highly value FENICS Professional for its robust functionality for pricing, calculation of non-linear risks, structured pricing functionality, and market data. It is a strong tool to support dealers’ portfolio management”. Mr. Levy added, “We are very pleased with the new functionality that has been added to the system that is fully integrated with our back-office system. The new FENICS Enterprise module will allow our Middle Office to use FENICS Pricing via an Excel interface for internal purposes.”

Richard Brunt, Head of FENICS at GFI Group commented: “The new release of FENICS Professional- version 12.1- will include functionality that has come directly from client feedback, such as the addition of sales term sheets, the ability to spread prices by counterparty and the tools to distribute retail structures directly to sales and branch networks. It is this scalability of FENICS Professional that continues to attract blue ribbon clients to the product.

The agreement includes a new commitment for 3 years.

GFI FENICS continues to expand its presence in the Israeli market where it enjoys a broad client base.

FENICS Professional is a suite of pricing, trading, risk management and STP (straight-through processing) components allowing customers to control, monitor and oversee every aspect of FX option trading and lifecycle management from one single interface.

GFI FENICS has been providing leading FX derivatives software since 1987. Its products are licensed to over 350 client firms worldwide – financial institutions and corporations – with thousands of users benefiting from its solutions.

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NASDAQ: “GFIG”) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of credit (fixed Income), financial, equity and commodity instruments.

Fenics Software Limited is a wholly owned subsidiary of GFI Group Inc.
Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Dublin, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI SM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, and Trayport®.

Forward-looking statement 
Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

GFI Fenics® Enhances Options Analysis At Glory Sky Group Hong Kong

Top Hong Kong brokerage house takes FENICS? market-leading FX system

New York, May 17, 2010 – Glory Sky Group, a leading Hong Kong brokerage house, has licensed FENICS Professional™, a pricing and risk management system for foreign exchange and commodity options from GFI Group Inc. (NASDAQ: “GFIG) to help manage its rapidly expanding FX and commodities derivatives business.

 

The agreement includes FENICS Pricing, Analysis, Structuring Module and Exotic Maths components. FENICS Professional allows Glory Sky to expand its business scope in the FX and commodity option trading and client distribution spaces.

Alfred Yeung, Chairman of Glory Sky Group said, “To meet our expanding FX and commodities derivatives business we need a reliable solution, so we chose FENICS Professional. The FENICS Professional package enhances our pricing and risk management capability and also helps our real-time analysis for both vanilla and exotics options.” Mr. Yeung added “GFI FENICS also provides an enterprise edition, FENICS Enterprise™, which will ultimately provide a seamless solution to distribute prices to all our clients, as we continue to expand our business.”

“GFI is delighted to be working with Glory Sky Group and that they have chosen to deploy FENICS Professional in Hong Kong” said Owen Kam, Head of GFI FENICS Sales for North Asia. “We are looking to further expand our footprint in Hong Kong to more clients from different sectors, such as commodities and we continue to be committed to providing scalable and customized solutions to fit our clients” needs” he further commented.

Glory Sky Group is a leading brokerage house in Hong Kong, providing multi-asset class securities and investment services to clients including financial institutions, funds, corporate and individual investors.

FENICS Professional is a suite of pricing, trading, risk management and STP (straight-through processing) components allowing customers to control, monitor and oversee every aspect of FX option trading and lifecycle management from one single interface.

GFI FENICS has been providing leading FX derivatives software since 1987. Its products are licensed to over 350 institutions worldwide with thousands of users benefiting from its solutions.

About GFI Group Inc. www.GFIgroup.com 
GFI Group Inc. (NASDAQ: “GFIG”) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of credit (fixed income), financial, equity and commodity instruments.

Fenics Software Limited is a wholly owned subsidiary of GFI Group Inc.
Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Dublin, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI SM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, and Trayport®.

Forward-looking statement 
Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company”s brokerage services; competition from current and new competitors; the Company”s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company”s ability to identify and develop new products and markets; changes in laws and regulations governing the Company”s business and operations or permissible activities; the Company”s ability to manage its international operations; financial difficulties experienced by the Company”s customers or key participants in the markets in which the Company focuses its brokerage services; the Company”s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company”s financial and other results is included in the Company”s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

GFI Group Inc. Announces First Quarter 2010 Results; Declares Quarterly Cash Dividend

Revenues: $220.8 Million

NEW YORK, NY, Apr 29, 2010 (MARKETWIRE via COMTEX) –GFI Group Inc. (NASDAQ: GFIG), a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, today announced financial results for the first quarter ended March 31, 2010.

Highlights

-- Total revenues for the first quarter of 2010 were $220.8 million
   compared with $216.2 million in the first quarter of 2009, an increase
   of 2%.  On a non-GAAP basis, total revenues rose 4% to $220.9 million in
   the first quarter of 2010 from $212.3 million in the first quarter of
   2009.
--  Brokerage revenues for the first quarter of 2010 rose 3% to $204.1
    million compared with $197.6 million in the first quarter of 2009.
--  Compensation and employee benefits expense in the first quarter of 2010
    was 65.5% of total revenues on both a GAAP and non-GAAP basis. This
    compares with 67.3% of total revenues on a GAAP basis and 66.7% of
    total revenues on a non-GAAP basis in the first quarter of 2009.
--  Non-compensation expenses were 25.4% of total revenues on a GAAP basis
    and 24.7% on a non-GAAP basis in the first quarter of 2010.  This
    compares with 24.3% of total revenues on a GAAP basis and 23.8% on a
    non-GAAP basis in the first quarter of 2009.
--  Net income for the first quarter of 2010 increased 15% to $13.4
    million, or $0.11 per diluted share, compared with $11.6 million, or
    $0.10 per diluted share, in the first quarter of 2009.  On a non-GAAP
    basis, net income increased 11% to $14.4 million, or $0.12 per diluted
    share, for the first quarter of 2010, compared with $12.9 million, or
    $0.11 per diluted share, in the first quarter of 2009.

 

Michael Gooch, Chairman and Chief Executive Officer of GFI, commented: “Our revenue growth in the first quarter of 2010 was in line with our forecast and was accompanied by improved profitability.

“Our markets continued to stabilize in the first quarter as we recorded sequential improvement in all product categories, as well as the highest level of brokerage revenues since the third quarter of 2008. While our first quarter is normally our strongest each year, the diversity and balance of our business also enabled us to take advantage of areas of market strength.

“Our Credit product revenues increased 36% from the fourth quarter of 2009 although they were 4% lower than the first quarter of 2009. Within the Credit category, which is our largest, our revenues from credit derivatives increased 62% sequentially and were 25% higher than the first quarter of 2009. This was due in part to a better overall business environment, increased electronic trading on our CreditMatch(R) platform, and heightened volatility tied to the sovereign debt crisis in Greece. We also believe there is correlation between the growth in cleared index and single-name credit derivative volumes and our rising credit derivative volumes. Our revenues from cash fixed income products increased 19% over the fourth quarter of 2009, but they decreased 20% from the first quarter of 2009 due, in large part, to competitive pressure in the U.S., which offset the growth in cash fixed income revenues in Europe and Asia-Pacific.

“Equity product revenues increased 4% sequentially, but were 11% lower than the first quarter of 2009 because of comparatively lower equity market volatility and trading volumes in the U.S. Our revenues from European and Asia-Pacific equity products improved both sequentially and over the first quarter of 2009.

“The continued recovery in emerging markets and Asia contributed to strong growth in our financial product revenues, which increased 21% sequentially and 23% over the first quarter of 2009. This growth reflected increases across all regions sequentially and year over year.

“Commodity product revenues rose 22% over the fourth quarter of 2009 and 21% over the first quarter of 2009. This reflected the continued stabilization of the global economy.

“Compensation and employee benefits expense, our largest expense category, improved when measured as a percentage of revenues compared with both the first and fourth quarters of 2009. Non-compensation expense also improved as a percentage of revenues compared with the fourth quarter of 2009, but was higher than the first quarter of 2009 mainly because of higher professional fees and increased travel and promotion expenses. Controlling expenses remains an area of priority and focus for us.

“Looking at the second quarter of 2010 to date, our preliminary non-GAAP brokerage revenues for the quarter (through April 28, 2010) are tracking flat to up slightly compared with non-GAAP revenues for the same period last year.”

“In the first quarter of 2010 we saw a continued return on our investment in technology over the past several years as our markets move increasingly to automation and transparency. Electronic trading remained strong in Europe and trading on our CreditMatch(R) and EnergyMatch(R) hybrid brokerage platforms continued to gain traction in North America.

Mr. Gooch concluded: “We have entered the second quarter of 2010 with the markets showing continued signs of stability. We plan to continue to build on our strength and diversity and capitalize on market opportunities that develop. We are also pleased to declare a quarterly cash dividend to our shareholders.”

Revenues

For the first quarter of 2010, total revenues were $220.8 million on a GAAP basis and $220.9 million on a non-GAAP basis. This compares with total revenues of $216.2 million on a GAAP basis and $212.3 million on a non-GAAP basis in the first quarter of 2009.

Brokerage revenues in the first quarter of 2010 were $204.1 million compared with $197.6 million in the first quarter of 2009. Revenues from financial products increased 23% and commodity product revenues increased 21% from the first quarter of 2009, while fixed income product and equity product revenues decreased 4% and 11%, respectively, from the prior year period. By geographic region, brokerage revenues for the first quarter of 2010 increased 28% in Asia-Pacific and 16% in EMEA while decreasing 14% in the Americas compared with the first quarter of 2009.

Revenues from trading software, analytics and market data products for the first quarter of 2010 were $14.9 million, up 14% from the first quarter of 2009.

Expenses

For the first quarter of 2010, compensation and employee benefits expense was $144.7 million on a GAAP and non-GAAP basis. This compares with $145.5 million on a GAAP basis and $141.7 million on a non-GAAP basis in the first quarter of 2009. Compensation and employee benefits expense declined to 65.5% of total revenues on both a GAAP and non-GAAP basis in the first quarter of 2010 from 67.3% of total revenues on a GAAP basis and 66.7% on a non-GAAP basis, in the first quarter of 2009.

On a GAAP basis, non-compensation expenses for the first quarter of 2010 were $56.0 million or 25.4% of total revenues compared with $52.6 million or 24.3% of total revenues in the first quarter of 2009. On a non-GAAP basis, non-compensation expenses for the first quarter of 2010 were $54.6 million or 24.7% of total revenues, excluding $1.4 million in intangible asset amortization. This compares with $50.4 million or 23.8% of total revenues in the first quarter of 2009, which excludes $1.4 million in intangible asset amortization and $0.8 million related to the termination of a joint venture.

The effective tax rate for the first quarter of 2010 was 33.5% as compared with 36.0% in the first quarter of 2009 on a GAAP basis and non-GAAP basis due to a shift in the geographic mix of earnings towards jurisdictions with lower tax rates.

Earnings

Net income for the first quarter of 2010 was $13.4 million, or $0.11 per diluted share, compared with net income of $11.6 million, or $0.10 per diluted share, in the first quarter of 2009. On a non-GAAP basis, net income for the first quarter of 2010 was $14.4 million, or $0.12 per diluted share, compared with $12.9 million or $0.11 per diluted share for the first quarter of 2009.

Non-GAAP Financial Measures

To supplement GFI’s unaudited financial statements presented in accordance with GAAP, the Company uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by GFI include non-GAAP revenues, non-GAAP net income and non-GAAP diluted earnings per share. These non-GAAP financial measures currently exclude amortization of acquired intangibles and certain other items that management views as non-operating or non-recurring from the Company’s statement of income as detailed below.

In addition, GFI may consider whether other significant non-operating or non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses. The non-GAAP financial measures also take into account income tax adjustments with respect to the excluded items.

GFI believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of the Company’s core business, operating results or future outlook. GFI’s management uses, and believes that investors benefit from referring to these non-GAAP financial measures in assessing the Company’s operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company’s performance to prior periods.

In addition to the reasons stated above, which are generally applicable to each of the items GFI excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude amortization of acquired intangibles because when analyzing the operating performance of an acquired business, GFI’s management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity as compared to the purchase price paid) without taking into consideration any charges for allocations made for accounting purposes. Further, because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets, when analyzing the operating performance of an acquisition in subsequent periods, the Company’s management excludes the GAAP impact of acquired intangible assets on its financial results. GFI believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.

Set forth below is specific detail regarding items excluded in our non-GAAP financial measures. A reconciliation of the non-GAAP to GAAP figures follows this press release.

In the first quarter of 2010, the difference between GAAP and non-GAAP revenues was $0.1 million and the difference between the GAAP net income and non-GAAP net income was $1.0 million and reflected for non-GAAP purposes:

--  The exclusion from revenues of a $0.1 million mark-to-market unrealized
    loss on forward hedges of future foreign currency revenues;
--  The exclusion of $1.4 million of amortization on all acquired
    intangible assets; and
--  The effect of adjusting for these items would increase the Company's
    income tax expense by $0.5 million.

 

In the first quarter of 2009, the difference between GAAP and non-GAAP revenue was $3.9 million and the difference between GAAP and non-GAAP net income was $1.3 million and reflected for non-GAAP purposes:

--  The exclusion from revenues of:
    --  a $3.2 million mark-to-market unrealized gain on forward hedges of
        future foreign currency revenues;
    --  a $0.7 million gain on the Company's exchange of its investment in
        The Clearing Corporation for an investment in a holding company of
        ICE Trust;
--  The exclusion of $1.4 million of amortization on all acquired
    intangible assets;
--  The exclusion of $4.6 million related to severance and other
    restructuring initiatives, including an $0.8 million charge relating to
    the termination of a joint venture; and
--  The effect of adjusting for these items would increase the Company's
    income tax expense by $0.7 million.

 

Dividend Declaration

The Board of Directors of GFI Group has declared a quarterly cash dividend of $0.05 per share payable on May 28, 2010 to shareholders of record on May 14, 2010.

Conference Call

GFI has scheduled an investor conference call to discuss the results at 8:30 a.m. (Eastern Time) on Friday, April 30. Those wishing to listen to the live conference call via telephone should dial 800-573-4752 in North America, passcode 79084273; and +1 617-224-4324 in Europe, same passcode.

A live audio web cast of the conference call will be available on the Investor Relations section of GFI’s Website. For web cast registration information, please visit: http://www.gfigroup.com. Following the conference call, an archived recording will be available at the same site.

Supplementary Financial Information

GFI Group has posted details of its historical monthly brokerage revenues on the Investor Relations page of its web site under the heading Supplementary Financial Information. The Company currently plans to post this information quarterly in conjunction with its announcement of earnings, but does not undertake a responsibility to continue to provide or update such information.

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NASDAQ: GFIG) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Dublin, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI(SM), GFInet(R), CreditMatch(R), GFI ForexMatch(R), EnergyMatch(R), FENICS(R), Starsupply(R), Amerex(R), and Trayport(R).

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

– FINANCIAL TABLES FOLLOW –

=IR=

                    GFI Group Inc. and Subsidiaries
              Consolidated Statements of Income (unaudited)
              (In thousands except share and per share data)
                                                      Three Months Ended
                                                          March 31,
                                                       2010        2009
                                                    ----------- -----------
REVENUES:
   Brokerage revenues:
      Agency commissions                            $   143,830 $   125,399
      Principal transactions                             60,296      72,215
                                                    ----------- -----------
         Total brokerage revenues                       204,126     197,614
   Software, analytics and market data                   14,900      13,052
   Interest income                                          240         497
   Other income                                           1,509       5,072
                                                    ----------- -----------
      Total revenues                                    220,775     216,235
                                                    ----------- -----------
EXPENSES:
   Compensation and employee benefits                   144,663     145,548
   Communications and market data                        11,886      11,498
   Travel and promotion                                   8,893       7,480
   Rent and occupancy                                     5,431       4,734
   Depreciation and amortization                          8,184       7,839
   Professional fees                                      6,597       5,091
   Clearing fees                                          7,424       8,107
   Interest                                               2,575       2,469
   Other expenses                                         5,008       5,344
                                                    ----------- -----------
      Total expenses                                    200,661     198,110
                                                    ----------- -----------
INCOME BEFORE PROVISION FOR
                                                    ----------- -----------
 INCOME TAXES                                            20,114      18,125
                                                    ----------- -----------
PROVISION FOR INCOME TAXES                                6,738       6,525
                                                    ----------- -----------
NET INCOME (LOSS)                                   $    13,376 $    11,600
                                                    =========== ===========
Basic earnings (loss) per share                     $      0.11 $      0.10
                                                    =========== ===========
Diluted earnings (loss) per share                   $      0.11 $      0.10
                                                    =========== ===========
Weighted average shares outstanding - basic         118,606,954 118,364,233
Weighted average shares outstanding - diluted       122,861,743 120,400,536
                      GFI Group Inc. and Subsidiaries
              Consolidated Statements of Income (unaudited)
                    As a Percentage of Total Revenues
                                                        Three Months Ended
                                                            March 31,
                                                          2010      2009
                                                        --------  --------
REVENUES:
   Brokerage revenues:
      Agency commissions                                    65.1%     58.0%
      Principal transactions                                27.3%     33.4%
                                                        --------  --------
         Total brokerage revenues                           92.4%     91.4%
   Software, analytics and market data                       6.7%      6.0%
   Interest income                                           0.1%      0.2%
   Other income                                              0.8%      2.4%
                                                        --------  --------
      Total revenues                                       100.0%    100.0%
                                                        --------  --------
EXPENSES:
   Compensation and employee benefits                       65.5%     67.3%
   Communications and market data                            5.4%      5.3%
   Travel and promotion                                      4.0%      3.5%
   Rent and occupancy                                        2.5%      2.2%
   Depreciation and amortization                             3.7%      3.6%
   Professional fees                                         3.0%      2.4%
   Clearing fees                                             3.4%      3.7%
   Interest                                                  1.2%      1.1%
   Other expenses                                            2.3%      2.5%
                                                        --------  --------
      Total expenses                                        91.0%     91.6%
                                                        --------  --------
INCOME BEFORE PROVISION FOR
                                                        --------  --------
 INCOME TAXES                                                9.0%      8.4%
                                                        --------  --------
PROVISION FOR INCOME TAXES                                   3.1%      3.0%
                                                        --------  --------
NET INCOME (LOSS)                                            5.9%      5.4%
                                                        ========  ========
                      GFI Group Inc. and Subsidiaries
                    Selected Financial Data (unaudited)
                          (Dollars in thousands)
                                                     Three Months Ended
                                                          March 31,
                                                      2010         2009
                                                  ------------ ------------
Brokerage Revenues by Product Categories:
    Credit                                        $     71,484 $     74,404
    Financial                                           38,110       31,091
    Equity                                              47,566       53,394
    Commodity                                           46,966       38,725
                                                  ------------ ------------
       Total brokerage revenues                   $    204,126 $    197,614
                                                  ============ ============
Brokerage Revenues by Geographic Region:
    Americas                                      $     77,401 $     89,537
    Europe, Middle East, and Africa                    107,877       93,306
    Asia-Pacific                                        18,848       14,771
                                                  ------------ ------------
       Total brokerage revenues                   $    204,126 $    197,614
                                                  ============ ============
                                                    March 31,  December 31,
                                                      2010         2009
                                                  ------------ ------------
Consolidated Statement of Financial Condition
 Data:
    Cash and cash equivalents                     $    310,426 $    342,379
    Total assets (1)                                 1,071,405      952,094
    Total debt, including current portion              173,900      173,688
    Stockholders' equity                               495,381      484,102
Selected Statistical Data:
    Brokerage personnel headcount (2)                    1,091        1,082
    Employees                                            1,789        1,768
    Broker productivity for the period (3)        $        187 $        155
(1) Total assets include receivables from brokers, dealers and clearing
    organizations of $214.9 million and $87.7 million at March 31, 2010 and
    December 31, 2009, respectively. These receivables primarily represent
    securities transactions entered into in connection with our matched
    principal business which have not settled as of their stated settlement
    dates. These receivables are substantially offset by corresponding
    payables to brokers, dealers and clearing organizations for these
    unsettled transactions.
(2) Brokerage personnel headcount includes brokers, trainees and clerks.
(3) Broker productivity is calculated as brokerage revenues divided by
    average monthly brokerage personnel headcount for the quarter.
                      GFI Group Inc. and Subsidiaries
    Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
              (In thousands except share and per share data)
                                                     Three Months Ended
                                                          March 31,
                                                      2010         2009
                                                  -----------  -----------
GAAP revenues                                     $   220,775  $   216,235
   Gain on exchange of cost-method investments (a)          -         (697)
   Mark-to-market (gain)/loss on forward hedges
    of future foreign currency revenues (a)                98       (3,242)
                                                  -----------  -----------
   Total Non-GAAP Revenues                            220,873      212,296
GAAP expenses                                         200,661      198,110
Non-operating adjustments:
   Amortization of intangibles                         (1,397)      (1,372)
   Severance and other restructuring                        -       (4,644)
                                                  -----------  -----------
      Total Non-GAAP adjustments (a)                   (1,397)      (6,016)
                                                  -----------  -----------
Non-GAAP operating expenses                           199,264      192,094
GAAP income before provision for income taxes          20,114       18,125
Sum of Non-GAAP items = (a)                             1,495        2,077
                                                  -----------  -----------
Non-GAAP income before tax provision                   21,609       20,202
GAAP provision for income taxes                         6,738        6,525
Income tax impact on Non-GAAP items (b)                   501          748
                                                  -----------  -----------
Non-GAAP provision for income taxes                     7,239        7,273
GAAP net income                                        13,376       11,600
Sum of Non-GAAP adjustments [ (a) - (b) ]                 994        1,329
                                                  -----------  -----------
Non-GAAP net income                               $    14,370  $    12,929
                                                  ===========  ===========
GAAP basic net income per share                   $      0.11  $      0.10
Basic non-operating income per share                     0.01         0.01
                                                  -----------  -----------
Non-GAAP basic net income per share               $      0.12  $      0.11
                                                  ===========  ===========
GAAP diluted net income per share                 $      0.11  $      0.10
Diluted non-operating income per share                   0.01         0.01
                                                  -----------  -----------
Non-GAAP diluted net income per share             $      0.12  $      0.11
                                                  ===========  ===========
Weighted average Non-GAAP shares outstanding -
 basic                                            118,606,954  118,364,233
Weighted average Non-GAAP shares outstanding -
 diluted                                          122,861,743  120,400,536

SOURCE: GFI Group

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GFI Creates New Commodities Division Latium Capital

New Unit Trades Ethanol, NGLs and Other Energy & Agricultural Products

NEW YORK, NY, Apr 12, 2010 (MARKETWIRE via COMTEX) –GFI Group Inc. (NASDAQ: GFIG) today announced the establishment of its Latium Capital division. Latium Capital trades as principal in ethanol, natural gas liquids and other energy and agricultural markets.

The Latium Capital team is based in New York. It is presently comprised of four traders: Robert Esposito, Robert Rozzi, Evan Kornhauser and Joseph Verdi. Ron Deal is also expected to join the team in May. The new team has a combined 75 years of experience in the commodities markets.

Robert Esposito, head of Latium Capital said: “We are very excited to be part of the GFI family and its dynamic business environment.”

Michael Cosgrove, GFI Group Managing Director and Head of Commodities and Energy Brokerage North America said: “With Latium Capital we have established a unique service for new and existing customers that is distinctly different from our traditional agency brokerage businesses.”

Latium Capital is a division of GFI Securities LLC.

About GFI Group Inc. www.GFIgroup.com GFI Group Inc. (NASDAQ: GFIG) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Dublin, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,100 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI(SM), GFInet(R), CreditMatch(R), GFI ForexMatch(R), EnergyMatch(R), FENICS(R), Starsupply(R), Amerex(R), and Trayport(R).

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: GFI Group Inc.

GFI Group ranked no. 1 overall inter-dealer broker in the Credit category

Credit magazine’s newly established 2010 IDB rankings

New York, April 6, 2010 – GFI Group, Inc (NASDAQ: “GFIG”) a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, has been ranked 2010 No.1 overall inter-dealer broker in the credit category by Credit magazine.

Voters cited GFI’s proven track record in credit derivatives, its strength across multiple markets, its reputation as a liquidity provider and its professionalism as key decision factors. 

Colin Heffron, President of GFI Group said “We are very pleased to be ranked overall no 1 in the credit category by our customers; we work hard at providing them with the best service and products to fit their needs” and added, “it is a great satisfaction for all of us and a testimony to the dedication of our people and our leading technology in the credit space.”

This newly created ranking is based on a poll of broker dealers actively trading fixed income with inter-dealer brokers as counterparties. The categories cover only fixed income, split by currency, market or asset class and include both cash and CDS (credit defaults swaps).

About GFI Group Inc. www.GFIgroup.com 
GFI Group Inc. (NASDAQ: “GFIG”) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Dublin, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,100 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI SM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, and Trayport®.

Forward-looking statement 
Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Hyman Beck & Co. selects GFI Fenics Professional™

Investment manager selects Leading GFI FX Options risk management and pricing tool

New York, March 23, 2010 – GFI Group (NASDAQ: “GFIG”) announced today that Hyman Beck and Company , one of the world’s most diversified alternative investment managers, has licensed FENICS Professional™ for the pricing and risk management of its FX options business.  The agreement includes FENICS Pricing, Analysis, and Structuring.

James Lubin, Principal and COO of Hyman Beck said: “We are very pleased to have chosen FENICS Professional as an enhancement to our existing risk management systems.  I was greatly impressed by the flexibility of FENICS reporting and the benefit it will deliver to the current risk control processes utilized in our FX options portfolio.  GFI FENICSSM is a brand that has been industry-recognized for many years and the ease of deployment allowed us to be up and running quickly.”

Suzanne Poulin, Head of GFI FENICS Sales for the Americas commented: “GFI has been successful in adding new clients in the investment management sector and is very happy to welcome Hyman Beck and Co. FENICS Professional encompasses all of the tools needed to manage an FX options business efficiently.”

GFI FENICS has been providing leading FX derivatives software since 1987. Its products are licensed to over 350 client firms worldwide – financial institutions and corporations – with thousands of users benefiting from its solutions.

About GFI Group Inc. www.GFIgroup.com 
GFI Group Inc. (NASDAQ: “GFIG”) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments. 
Fenics Software Limited is a wholly owned subsidiary of GFI Group Inc.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Dublin, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,100 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI SM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, and Trayport®.

Forward-looking statement 
Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.