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GFI Group Inc. Announces Fourth Quarter and Full Year 2013 Results; Declares Quarterly Cash Dividend

(Results relate to the fourth quarter 2013 and comparisons are versus the fourth quarter 2012, unless otherwise stated)

NEW YORK, Feb. 13, 2014 /PRNewswire/ — GFI Group Inc. (NYSE: GFIG), a leading intermediary and provider of trading technologies and support services to the global OTC and listed markets, reported today its financial results for the fourth quarter and full year ended December 31, 2013.

Highlights of Results	Three months ended December 31,						Year ended December 31,
$ in millions	2013			2012			2013			2012
Total revenues	$	202.3		$	207.3		$	901.5		$	924.6
Net revenues		170.8			173.4			747.0			787.0
Brokerage revenues		143.5			150.4			645.4			695.5
Software, analytics and market data revenue		24.1			22.5			90.5			84.2
Compensation ratio ⁽¹⁾		71.9	%		73.2	%		69.2	%		70.2	%
Non-compensation ratio ⁽¹⁾		31.1	%		30.5	%		28.7	%		28.4	%
Non-GAAP net (loss) income ⁽¹⁾	$	(6.6)		$	(2.9)		$	9.1		$	8.9
Cash earnings ⁽¹⁾		12.4			18.0			87.4			92.1


(1)	Item represents a non-GAAP financial measure; see discussion below, as well as a reconciliation to GAAP in the financial tables attached to this release.

Colin Heffron, Chief Executive Officer commented: “Challenging trading conditions remained in the fourth quarter due to continued regulatory change, modest trading volumes and low market volatility. Net revenues and brokerage revenues were down 1.5% and 4.6%, respectively. However, GFI’s software, analytics and market data revenues were up 7.2%.

“We continue to invest in our electronic trading and Swaps Execution Facility (“SEF”) platforms to provide effective trading solutions for our customers. In October of 2013, following the creation of SEFs, the swaps markets began their transformation to more regulated, transparent and centrally cleared marketplaces. This transformation is ongoing, as customers seek clarification of certain rules and await the mandated SEF trading deadlines for certain interest rate and fixed income derivative products. We believe that the uncertain impact of ongoing regulatory change continued to negatively impact trading volumes across derivative markets.

“GFI’s electronic matching sessions continued to provide substantial revenues in the fourth quarter. In the Americas and EMEA, matching session revenues represented approximately 46% and 21% of fixed income product revenues, respectively. In fixed income products globally, matching session revenues nearly tripled in derivatives and more than doubled in cash products, year over year.

“GFI’s Trayport and FENICS businesses had record revenues and profits in 2013 as they leveraged their customer base and expanded their products and services. Trayport’s software revenues grew 7% in the fourth quarter and 9% for the full year 2013.

“We remain focused on reducing GFI’s overall cost structure and are pleased with the lower, performance-based compensation arrangements implemented over the past eighteen months. GFI’s non-GAAP compensation ratio improved despite lower revenues in the fourth quarter, year over year.

“Through the second week in February, GFI’s preliminary total revenues are tracking down approximately 4% year over year.

“GFI’s fourth quarter cash earnings were $0.10 per diluted share, or approximately $12.4 million. We are pleased to declare a quarterly cash dividend to GFI shareholders of $0.05 per share.”

GAAP Results: Fourth Quarter 2013

Net revenues were $170.8 million, compared to $173.4 million in the prior year. Our net loss was $30.9 million, or $(0.25) per diluted share, compared with a net loss of $11.4 million, or $(0.10) per diluted share. Compensation and employee benefits expense was 72.3% of net revenues, as compared with 71.8% in the prior year. Non-compensation expenses were $75.2 million, or 44.0% of net revenues, compared to $58.3 million, or 33.6% of net revenues in the prior year.

The fourth quarter 2013 GAAP results include a $19.6 million charge relating to impairment of goodwill and intangibles, which includes $18.9 million at Kyte. At the time of acquisition, a $19.3 million liability was recorded related to a potential earn out payment to Kyte’s selling shareholders, which resulted in a corresponding increase to goodwill. Over time, the $19.3 million estimated earn out liability was written down to $0.8 million through the GAAP results and was removed from non-GAAP results, as this was a non-cash and non-operating item. The impairment of goodwill and intangibles recorded in this quarter likewise has no cash impact and was excluded from non-GAAP results.

Also in the fourth quarter we established a valuation allowance against deferred tax assets in certain overseas jurisdictions. The total valuation allowance taken on these items was $4.9 million of which $3.4 million related to deferred tax assets recognized in prior years.

Non-GAAP Results: Fourth Quarter 2013

Revenues

Net revenues were $171.4 million, as compared to $174.9 million.

Brokerage revenues were $143.5 million, compared to $151.0 million. Revenues from fixed income, financial, commodity and equity products were down 1.2%, 2.0%, 4.5% and 14.3%, respectively. By geographic region, brokerage revenues decreased 0.3%, 8.7% and 4.1% in the Americas, EMEA and Asia-Pacific, respectively.

Revenues from trading software, analytics and market data products were $24.1 million, up 7.2% from $22.5 million, in the prior year.

Expenses

Our compensation and employee benefit expenses were $123.3 million, or 71.9% of net revenues, compared with $128.0 million, or 73.2% in fourth quarter 2012. Non-compensation expenses were $53.2 million, or 31.1% of net revenues, compared with $53.3 million, or 30.5% in the prior year.

Earnings

GFI’s net loss was $6.6 million, or $(0.05) per diluted share, compared with a loss of $2.9 million, or $(0.02) per diluted share.

The effective tax rate for 2013 was approximately 36.0%, as compared to 11.9% in 2012. The increase was primarily driven by valuation allowances recognized in the fourth quarter of 2013 on certain non-U.S. deferred tax assets, as well as the release of a tax liability in 2012 which reduced that year’s effective rate.

GAAP Results: Full Year 2013

GAAP net revenues were $747.0 million for the full year 2013, compared with $787.0 million in 2012. GAAP net loss was $20.0 million, or $(0.17) per diluted share for 2013, compared with a loss of $10.0 million, or $(0.09) per diluted share in 2012. The compensation and employee benefits ratio in 2013 was 69.1%, down from 69.4% in 2012. Non-compensation expenses, for the full year 2013 were $252.1 million, or 33.7% compared with $241.8 million, or 30.7% in 2012. Non-compensation expenses include a $19.6 million non-cash, pre-tax charge for the impairment of goodwill and intangible assets, primarily relating to GFI’s Kyte subsidiary.

Non-GAAP Results: Full Year 2013

On a non-GAAP basis, net revenues for the full year 2013 were $745.5 million, compared to $781.5 million in 2012. Net income was $9.1 million, or $0.07 per diluted share, for the full year 2013, compared with net income of $8.9 million, or $0.07 per diluted share, in 2012.

Dividend Declaration

The Board of Directors of GFI has declared a quarterly cash dividend of $0.05 per share payable on March 28, 2014 to shareholders of record as of March 14, 2014.

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 total revenues, non-GAAP net revenues, non-GAAP provision for or benefit from income taxes, non-GAAP net income, non-GAAP diluted earnings per share, cash earnings and cash earnings per share. These non-GAAP financial measures currently exclude from the Company’s statement of income amortization of acquired intangibles and certain other items that management views as non-operating, non-recurring or non-cash as detailed in the reconciliation included in the financial tables attached to this release.

In addition, GFI may consider whether other significant non-operating, non-recurring or non-cash 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 estimated adjustments to income tax expense 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.

A reconciliation of these non-GAAP financial measures to GAAP is included in the financial tables attached to this release.

Conference Call

GFI has scheduled an investor conference call to discuss its fourth quarter results at 8:30 a.m. (Eastern Time) on Friday, February 14, 2014. Those wishing to listen to the live conference call via telephone should dial 1-877-870-4263 in North America and +1-412-317-0790 outside of North America, and ask for “GFI”.

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.

Supplementary Financial Information

GFI 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.

GFI Group Inc. (NYSE: GFIG) is a leading intermediary in the global OTC and Listed markets offering an array of sophisticated trading technologies and products to a broad range of financial market participants. More than 2,600 institutional clients benefit from GFI’s know-how and experience in operating electronic and hybrid markets for cash and derivative products across multiple asset classes, including fixed income, interest rates, foreign exchange, equities, energy and commodities. GFI’s brands include Trayport®, a leading provider of trading solutions for energy markets worldwide and FENICS ®, a market leader in FX options software.

Founded in 1987 and headquartered in New York, GFI employs over 2,000 people globally, with additional offices in London, Paris, Nyon, Dublin, Madrid, Sugar Land (TX), Hong Kong, Tel Aviv, Dubai, Manila, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogota, Buenos Aires, Lima and Mexico City.

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 –

GFI Group Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
(In thousands except share and per share data)


		Three Months Ended		Twelve Months Ended
		December 31,		December 31,
		2013	2012	2013	2012
Revenues
	Agency commissions	$ 103,278	$ 104,110	$ 461,691	$ 484,386
	Principal transactions	40,246	46,329	183,714	211,159
	Total brokerage revenues	143,524	150,439	645,405	695,545
	Clearing services revenues	28,911	29,704	139,136	118,011
	Interest income from clearing services	570	639	2,193	1,964
	Equity in net earnings of unconsolidated businesses	1,241	2,327	8,166	8,569
	Software, analytics and market data	24,100	22,482	90,538	84,153
	Other income, net	4,001	1,703	16,012	16,345
	Total revenues	202,347	207,294	901,450	924,587

Interest and transaction-based expenses
	Transaction fees on clearing services	27,213	28,738	134,165	113,726
	Transaction fees on brokerage services	4,183	4,831	19,755	22,843
	Interest expense from clearing services	180	293	570	973
	Total interest and transaction-based expenses	31,576	33,862	154,490	137,542
	Revenues, net of interest and transaction-based expenses	170,771	173,432	746,960	787,045

Expenses
	Compensation and employee benefits	123,485	124,574	516,222	546,501
	Communications and market data	12,798	14,131	53,875	60,760
	Travel and promotion	7,555	8,503	30,853	35,850
	Rent and occupancy	6,228	2,908	28,380	23,667
	Depreciation and amortization	8,333	9,122	33,295	36,624
	Professional fees	5,703	5,768	24,527	23,238
	Interest on borrowings	7,822	6,805	30,297	26,885
	Impairment of goodwill and intangibles	19,602	–	19,602	–
	Other expenses	7,116	11,047	31,254	34,777
	Total other expenses	198,642	182,858	768,305	788,302

Loss before provision for (benefit from) income taxes		(27,871)	(9,426)	(21,345)	(1,257)

Provision for (benefit from) income taxes		2,994	1,688	(2,273)	8,387

Net loss before attribution to non-controlling stockholders		(30,865)	(11,114)	(19,072)	(9,644)

Less: Net income attributable to non-controlling interests		37	258	926	309
GFI’s net loss		$ (30,902)	$ (11,372)	$ (19,998)	$ (9,953)


Basic loss per share		$ (0.25)	$ (0.10)	$ (0.17)	$ (0.09)
Diluted loss per share		$ (0.25)	$ (0.10)	$ (0.17)	$ (0.09)

Weighted average shares outstanding – basic		121,765,553	115,837,632	119,052,908	116,014,202

Weighted average shares outstanding – diluted		121,765,553	115,837,632	119,052,908	116,014,202

GFI Group Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
As a Percentage of Net Revenues


		Three Months Ended		Twelve Months Ended
		December 31,		December 31,
		2013	2012	2013	2012
Revenues
	Agency commissions	60.5%	60.0%	61.8%	61.5%
	Principal transactions	23.6%	26.7%	24.6%	26.8%
	Total brokerage revenues	84.1%	86.7%	86.4%	88.3%
	Clearing services revenues	16.9%	17.1%	18.6%	15.0%
	Interest income from clearing services	0.3%	0.4%	0.3%	0.2%
	Equity in net earnings of unconsolidated businesses	0.7%	1.3%	1.1%	1.1%
	Software, analytics and market data	14.1%	13.0%	12.1%	10.7%
	Other income, net	2.4%	1.0%	2.2%	2.1%
	Total revenues	118.5%	119.5%	120.7%	117.4%

Interest and transaction-based expenses
	Transaction fees on clearing services	15.9%	16.6%	18.0%	14.4%
	Transaction fees on brokerage services	2.5%	2.8%	2.6%	2.9%
	Interest expense from clearing services	0.1%	0.1%	0.1%	0.1%
	Total interest and transaction-based expenses	18.5%	19.5%	20.7%	17.4%
	Revenues, net of interest and transaction-based expenses	100.0%	100.0%	100.0%	100.0%

Expenses
	Compensation and employee benefits	72.3%	71.8%	69.1%	69.4%
	Communications and market data	7.5%	8.1%	7.2%	7.7%
	Travel and promotion	4.4%	4.9%	4.1%	4.6%
	Rent and occupancy	3.6%	1.7%	3.8%	3.0%
	Depreciation and amortization	4.9%	5.3%	4.5%	4.7%
	Professional fees	3.3%	3.3%	3.3%	3.0%
	Interest on borrowings	4.6%	3.9%	4.1%	3.4%
	Impairment of goodwill and intangibles	11.5%	0.0%	2.6%	0.0%
	Other expenses	4.2%	6.4%	4.2%	4.4%
	Total other expenses	116.3%	105.4%	102.9%	100.2%

Loss before provision for (benefit from) income taxes		-16.3%	-5.4%	-2.9%	-0.2%

Provision for (benefit from) income taxes		1.8%	1.0%	-0.3%	1.1%

Net loss before attribution to non-controlling stockholders		-18.1%	-6.4%	-2.6%	-1.3%

Less: Net income attributable to non-controlling interests		0.0%	0.2%	0.1%	0.0%
GFI’s net loss		-18.1%	-6.6%	-2.7%	-1.3%

GFI Group Inc. and Subsidiaries
Selected Financial Data (unaudited)
(Dollars in thousands except per share data)


		Three Months Ended		Twelve Months Ended
		December 31,		December 31,
		2013	2012	2013	2012

Brokerage Revenues by Product Categories:
	Fixed Income	$ 38,788	$ 39,090	$ 175,691	$ 188,328
	Financial	40,806	41,627	191,836	185,062
	Equity	26,391	30,780	116,579	135,826
	Commodity	37,539	38,942	161,299	186,329

	Total brokerage revenues	$ 143,524	$ 150,439	$ 645,405	$ 695,545


Brokerage Revenues by Geographic Region:
	Americas	$ 58,985	$ 59,171	$ 260,503	$ 274,498
	Europe, Middle East, and Africa	69,950	76,054	314,417	345,069
	Asia-Pacific	14,589	15,214	70,485	75,978

	Total brokerage revenues	$ 143,524	$ 150,439	$ 645,405	$ 695,545




		December 31,	December 31,
		2013	2012

Consolidated Statement of Financial Condition Data:
	Cash and cash equivalents	$ 174,606	$ 227,441
	Cash held at clearing organizations, net of customer cash	52,414	19,636
	GFI’s total balance sheet cash	227,020	247,077
	Balance sheet cash per share	1.84	2.11

	Total assets (1)	1,161,542	1,180,061
	Total debt	250,000	250,000
	Stockholders’ equity	407,276	425,082


Selected Statistical Data:
	Brokerage personnel headcount (2)	1,121	1,188
	Employees	2,087	2,062
	Broker productivity for the period (3)	$ 127	$ 125




(1)	Total assets include receivables from brokers, dealers and clearing organizations of $295.7 million and $252.7 million at December 31, 2013 and December 31, 2012, 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, as well as balances with clearing organizations. These receivables are substantially offset by corresponding payables to brokers, dealers and clearing organizations and to clearing customers, for these unsettled transactions.
(2)	Brokerage personnel headcount includes brokers, traders, 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		Twelve Months Ended
	December 31,		December 31,
	2013	2012	2013	2012

GAAP revenues	$ 202,347	$ 207,294	$ 901,450	$ 924,587
Mark-to-market loss on forward hedges of future foreign currency revenues	590	734	744	1,021
Fair value mark-to-market gain on future purchase commitment	–	(447)	(2,203)	(9,545)
Fair value mark-to-market loss on warrants on investee shares	–	638	22	2,475
Trading losses from start-up operations	–	539	–	539
Total Non-GAAP Revenues	202,937	208,758	900,013	919,077

GAAP interest and transaction-based expenses	31,576	33,862	154,490	137,542

Non-GAAP revenues, net of interest and transaction-based expenses	171,361	174,896	745,523	781,535

GAAP other expenses	198,642	182,858	768,305	788,302
Amortization of intangibles	(2,332)	(2,531)	(9,640)	(11,293)
Impairment of goodwill and intangibles	(19,602)	–	(19,602)	–
Modification of stock awards for departing executive	(227)	–	(227)	–
Expenses from start-up operations	–	(4,803)	(8,573)	(4,803)
Duplicate rent	–	–	(345)	–
Writedown of available for sale securities	–	–	–	(5,362)
Adjustment of sublease loss accrual	–	3,215	–	3,215
Costs associated with Hurricane Sandy	–	(904)	–	(904)
Closure of certain desks in Asia	–	–	–	(1,578)
Change in estimate – Kyte opening balance sheet liability	–	3,474	–	3,474
Non-GAAP other expenses	176,481	181,309	729,918	771,051

Non-GAAP pre-tax (loss) income	(5,120)	(6,413)	15,605	10,484

Income tax impact on Non-GAAP items	64	(3,649)	6,821	2,616
Plus: Valuation allowance on prior year non-U.S. deferred tax assets	(3,413)	–	(3,413)	–
Plus: Adjustment to acquisition-related deferred tax liabilities	1,820	–	1,820	–
Plus: Non-operating adjustment for the recognition of a tax (benefit) provision related to interest income between international affiliates	–	(44)	2,655	(2,655)
Plus: Non-operating adjustment for the recognition of a tax benefit related to the repatriation of international profits	–	(1,813)	–	(7,097)
Non-GAAP provision for (benefit from) income taxes	1,465	(3,818)	5,610	1,251

Less: Net income attributable to non-controlling interests	37	258	926	309

GFI’s Non-GAAP net (loss) income	$ (6,622)	$ (2,853)	$ 9,069	$ 8,924

Non-GAAP diluted net (loss) income per share	$ (0.05)	$ (0.02)	$ 0.07	$ 0.07

Pre-tax adjustments to arrive at cash earnings
Amortization of RSUs	6,951	7,732	29,323	32,365
Amortization of prepaid sign-on and retention bonuses	6,038	6,540	25,366	25,472
Depreciation and other amortization	6,001	6,591	23,655	25,331
Total pre-tax adjustments to cash earnings	18,990	20,863	78,344	83,168

Non-GAAP pre-tax cash earnings from ongoing operations	13,870	14,450	93,949	93,652

Non-GAAP provision for (benefit from) income taxes	1,465	(3,818)	5,610	1,251

Less: Net income attributable to non-controlling interests	37	258	926	309

GFI’s Non-GAAP net cash earnings from ongoing operations	$ 12,368	$ 18,010	$ 87,413	$ 92,092

Non-GAAP cash earnings per share	$ 0.10	$ 0.16	$ 0.69	$ 0.75

Weighted average shares outstanding – diluted	121,765,553	115,837,632	127,418,193	123,455,160

GFI Group Inc.
Adjusted EBITDA

($ in ‘000’s, except share and per share amounts)	4Q12	1Q13	2Q13	3Q13	4Q13	Last twelve months (LTM)

Net (loss) income per U.S. GAAP before attribution to non-controlling interests	$ (11,114)	$ 4,954	$ 6,868	$ (29)	$ (30,865)

Plus: Net income attributable to non-controlling interests	(258)	(280)	(177)	(432)	(37)
GFI’s net (loss) income	(11,372)	4,674	6,691	(461)	(30,902)

Plus: Extraordinary and other non-recurring pretax items (i.e., non-GAAP adjustments)	3,013	9,220	1,491	3,488	22,751

Plus: Interest expense	7,098	7,848	7,262	7,755	8,002

Less: Interest income	(849)	(928)	(579)	(630)	(773)

Plus: Income tax expense (benefit)	1,688	(4,859)	719	(1,127)	2,994

Plus: Depreciation and amortization expense (excluding intangibles)	6,591	5,810	5,863	5,981	6,001

Plus: Amortization of RSUs	7,732	8,142	7,360	6,870	6,951

Plus: Amortization of prepaid sign-on and retention bonuses	6,540	6,112	7,278	5,938	6,038

Adjusted EBITDA	$ 20,441	$ 36,019	$ 36,085	$ 27,814	$ 21,062	$ 120,980

Weighted average shares outstanding – diluted						127,418,193

Adjusted EBITDA per share (pre-tax)						$ 0.95

SOURCE GFI Group Inc.

GFI Group To Provide Credit Suisse and UBS Sponsored Access Functionality For Interest Rate Swaps

Agreement will allow bank customers to access GFI’s SEF

New York, November 20, 2013 – GFI Group Inc. (NYSE: “GFIG”), a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, announced today that two of the world’s leading banks, Credit Suisse and UBS, will be utilizing the sponsored access functionality of GFI’s Swap Execution Facility “SEF” for interest rate swaps.

GFI Sponsored Access functionality allows dealer banks to connect their existing customer execution platforms to RatesMatch^SM, the firm’s electronic SEF marketplace for the trading of interest rate swaps. Credit Suisse and UBS will act as agents, facilitating an easy transition for their customers as they comply with the Dodd-Frank Act and Commodity Futures Trading Commission’s (CFTC) SEF rules. UBS will also stream prices into RatesMatch^SM Central Limit Order Book, adding additional liquidity to GFI’s market place for interest rates swaps.

GFI RatesMatch^SM provides banks and their customers with a central liquidity pool and the use of 4 major trading protocols: Central Limit Order Book, Request-for-Quote, Matching sessions and Request-for-Match^SM.

Henry Ann, Head of Rates–North America at GFI Group said: “We are delighted that Credit Suisse and UBS are partnering with RatesMatch^SM for interest rate swaps in the new regulatory landscape. Our sponsored access functionality underscores GFI’s commitment to working with major dealers that are connecting their customers to our SEF. This is an important early step in the evolution of our rates business and we look forward to working with these two firms and other dealers who will be using our sponsored access model in the future.”

“Providing our clients seamless access to SEFs like GFI’s through our sponsored access model is at the core of our agency and liquidity aggregation strategy. We believe enabling clients to benefit from the GFI liquidity pool without the challenges of becoming a direct SEF participant is incredibly valuable in this time of complexity and fragmentation” said Paul Hamill, Managing Director, Fixed Income Trading at UBS.”

GFI Swaps Exchange LLC has received temporary registration approval from the Commodity Futures Trading Commission (“CFTC”) to operate a Swap Execution Facility (“SEF”) for the trading of regulated swaps. It offers its members a comprehensive range of electronic and other methods of trade execution, including central limit order book, electronic request for quote (“RFQ”), voice-based request-for-quote, Request for Match^S, session-based matching and join-the-trade.

GFI’s SEF also facilitates execution of brokered trades, cross trades and block trades. GFI Swaps Exchange includes the following trading systems: RatesMatch^SM, CreditMatch®, GFI ForexMatch® and EnergyMatch®.

——————————————————

About GFI Group Inc.

GFI Group Inc. (NYSE: “GFIG”) is a leading provider of wholesale brokerage services, clearing services, 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 2,000 people with additional offices in London, Paris, Nyon, Hong Kong, Manila, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogota, Buenos Aires, Lima, Dubai, Dublin, Tel Aviv, Los Angeles and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,600 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®, Trayport® and Kyte®.

Forward-looking statement

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com
www.gfigroup.com

Nittan Capital Selects FENICS Professional for FX Options Workflow Analysis

Asian inter-dealer brokerage appoints FENICS for pricing, deal capture and STP

New York, November 12, 2013 – FENICS^®, a leading provider of FX options software, announced today that Nittan Capital, a leading inter-dealer broker in the Asia-Pacific region specializing in financial derivatives between banks and authorized financial institutions, has licensed FENICS Professional^TM, a pricing and risk management system for foreign exchange options. Nittan Capital has deployed FENICS Professional in its Singapore and Hong Kong offices.

Richard Brunt, Managing Director of FENICS, said: “We are delighted that Nittan Capital has selected FENICS Professional as their FXO system, delivering a high level of integration via our locally based Professional Services Group. This is an exciting time for FENICS in the Asia region, as we continue to widen our client base. Our investment in development and support resources in Asia is on-going and is something that we will look to accelerate in 2014”.

Chris Butcher, Head of Regional Currency Options at Nittan Capital said: “We have selected FENICS Professional over the competition not only on the basis of its reputation in the FX Options market place but also because of FENICS’ ability to connect to our back office system seamlessly, making our business process more efficient and allowing us to better service our customers.”

The FENICS Professional STP API allows Nittan Capital staff to quickly and accurately capture FX option trade details and send them through to their back office systems and to their client network without the need for re-keying or human intervention.

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

FENICS is licensed to over 350 clients worldwide, financial institutions and corporations, with thousands of users benefiting from its solutions.

———————————-

About FENICS www.FENICS.com

FENICS® Software Limited is a wholly owned subsidiary of GFI Group Inc., a leading provider of wholesale brokerage services and trading support products in a multitude of global cash and derivatives markets.

FENICS has more than 25 years’ experience of providing intuitive price discovery software to currency derivative markets. Its ability to deliver powerful and accurate price discovery and revaluation is enhanced by GFI’s presence as an important independent intermediary in OTC markets. FENICS’ leading foreign exchange option pricing and analysis tool is licensed for use at over 350 client sites worldwide. FENICS operates from offices in London, New York, Shanghai, Singapore, Hong Kong, Tokyo and Sydney.

Forward-looking statement

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com

FENICS® Releases Next Generation of Exotic Pricing Models

Robust and transparent model backed by 25 years’ experience in FX options markets

New York, October 28, 2013 – FENICS^®, a leading provider of FX options software, announced today the release of FENICS Professional^TM 12.3, a new generation of its award-winning FX options software. This major release applies cutting-edge quantitative models to greatly enhance FENICS’ exotic math offering.

A Local Stochastic Volatility (LSV) pricing model within FENICS Exotics, complete with a calibration data feed, provides users with the tools to price complex exotic options accurately and with confidence. This release also brings full support for Target Accrual Redemption Forward (TARF) options throughout the FENICS Professional product.

Richard Brunt, Managing Director of FENICS said: “Our customers requested that we add an LSV model to our existing exotic package, and we are delighted to have delivered this. The feedback during our soft launch phase has been excellent, and we look forward to rolling out this new functionality to our wider client base.”

Brunt added: “Our investment in providing cutting edge maths models and new option types is on-going and our models remain at the core of the FENICS Professional product.”

John Crisp, Director of the Product Group at FENICS added: “FENICS has applied expert quantitative resource to building these models within the FENICS Professional solution. We are proud to be one of the first in the FX space to offer up-to-date calibration data as part of this service.”

Calibration is a key part of an LSV model. Within FENICS Professional 12.3 customers can choose whether to use FENICS’ calibration, their own, or compare the two. The addition of these complex analytics, along with this flexibility, gives FENICS users a clear, accurate solution for FX options pricing and the control required for risk management.

FENICS is licensed to over 350 clients worldwide, financial institutions and corporations, with thousands of users benefiting from its solutions.

About FENICS www.FENICS.com

Forward-looking statement

For any queries or additional information please contact:
Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com

GFI Group Inc. Announces Third Quarter 2013 Results; Declares Quarterly Cash Dividend

– GAAP Total Revenues: $212.4 Million; Non-GAAP Total Revenues: $213.2 Million

NEW YORK, Oct. 24, 2013 /PRNewswire/ — GFI Group Inc. (NYSE: GFIG), a leading provider of wholesale brokerage services, clearing services, and electronic execution and trading support products for global financial markets, reported today its financial results for the third quarter ended September 30, 2013.

Highlights

Non-GAAP net revenues decreased 4.0% to $177.0 million from $184.4 million in the third quarter of 2012.
Brokerage revenues declined 7.0% to $151.2 million from $162.5 million in the prior year period.
Revenues from trading software, analytics and market data products were $22.5 million, up 6.0% from $21.2 million in the third quarter of 2012.
Compensation and employee benefits expense was 68.4% of net revenues, on a non-GAAP basis, compared to 70.7% in the prior year period.
Non-compensation expenses were 30.3% of net revenues, on a non-GAAP basis, compared to 29.7% in the third quarter of 2012.
Net income was $1.4 million, or $0.01 per diluted share, on a non-GAAP basis, compared to $0.7 million, or $0.01 per diluted share, in the prior year period.
Cash earnings were $20.2 million, or $0.16 per diluted share, compared to $21.0 million, or $0.17 per diluted share, in the same period of 2012.
For the nine months ended September 30, 2013, non-GAAP net revenues decreased 5.4% to $574.2 million, from $606.6 million in 2012. Non-GAAP net income was $15.7 million, or $0.12 per diluted share, for the nine months ended September 30, 2013, compared to $11.8 million, or $0.10 per diluted share, for the same period in 2012.

Colin Heffron, Chief Executive Officer commented: “Lower market volatility in July and August and the early October compliance deadline for Swaps Execution Facilities (“SEFs”) adversely impacted trading volumes in the third quarter. Despite these factors, GFI’s electronic matching session revenues approximately tripled in cash fixed income and doubled in fixed income derivative products, year over year. GFI’s trading platforms continue to gain traction across products and regions. Trayport’s revenues grew 11% year over year in its functional currency, assisted by the evolution of Trayport’s software as a service product and expansion into new asset classes and geographies.

“Our continued efforts to reduce GFI’s cost base is reflected in an improved adjusted EBITDA and compensation ratio year-over-year, despite the lower revenue environment.

“In October, we successfully commenced operations on the GFI Swaps Exchange, our SEF platform, with proprietary trading technology across asset classes and electronic connectivity to customers, clearers and data warehouses. We continue to add customers and products to our SEF platform in all asset classes and are pleased with its performance to date.

“GFI’s preliminary October 2013 total revenues are approximately flat when compared to the same period of October last year, while brokerage revenues are tracking down approximately 5%. We do not currently expect any meaningful increase in volumes in the fourth quarter as our customers continue to adjust to the new regulatory landscape over the next few months.

“GFI’s cash earnings were $0.16 per diluted share, or approximately $20.2 million, in the third quarter of 2013. We are pleased to declare a quarterly cash dividend to GFI shareholders of $0.05 per share.”

GAAP Results

GAAP net revenues were $176.2 million in the third quarter of 2013, compared to $184.2 million in the third quarter of 2012. GAAP net loss was $0.5 million, or $0.00 per diluted share, in the third quarter of 2013, compared with a loss of $8.7 million, or a loss of $0.08 per diluted share, in the prior year period. Compensation and employee benefits expense in the third quarter of 2013 was 68.7%, on a GAAP basis, as compared with 70.9% in the third quarter of 2012. GAAP non-compensation expenses for the third quarter of 2013 were $56.3 million, or 31.9% of net revenues, compared to $60.8 million, or 33.0% of net revenues, in the prior year period.

Revenues

Net revenues were $177.0 million on a non-GAAP basis in the third quarter of 2013, as compared to $184.4 million in the third quarter of 2012.

Brokerage revenues were $151.2 million in the third quarter of 2013 compared to $162.5 million in the prior year period. Revenues from fixed income, financial, commodity and equity products were down 5.1%, 1.3%, 8.2% and 16.2%, respectively, compared to the third quarter of 2012. By geographic region, brokerage revenues for the third quarter of 2013 decreased 13.3%, 8.3% and 3.4% in Asia-Pacific, EMEA and the Americas, respectively, compared with the same quarter of 2012.

Revenues from trading software, analytics and market data products for the third quarter of 2013 were $22.5 million, up 6.0% from $21.2 million in the third quarter of 2012.

Expenses

For the third quarter of 2013, non-GAAP compensation and employee benefits expense was $121.1 million, or 68.4% of net revenues, compared with $130.4 million, or 70.7% of net revenues, in the third quarter of 2012. Non-GAAP non-compensation expenses for the third quarter of 2013 were $53.6 million, or 30.3% of net revenues, compared with $54.7 million, or 29.7% of net revenues, in the third quarter of 2012.

Earnings

Non-GAAP net income for the third quarter of 2013 was $1.4 million, or $0.01 per diluted share, compared with $0.7 million, or $0.01 per diluted share, in the third quarter of 2012.

GFI’s effective non-GAAP tax rate for the first nine-months of 2013 was 20.0% as compared to a full year rate of 11.9% in 2012. The increase is primarily driven by a release of a tax liability in 2012, which created an unusually low tax rate for that year.

Nine Month Results

GAAP net revenues were $576.2 million for the nine months ended September 30, 2013, compared with $613.6 million for the same period 2012. GAAP net income was $10.9 million, or $0.09 per diluted share, in the first nine months of 2013, compared with $1.4 million, or $0.01 per diluted share, in the prior year period. Compensation and employee benefits expense in the first nine months of 2013 was 68.2%, on a GAAP basis, down from 68.8%, in the prior year period. Non-compensation expenses, on a GAAP basis, for the nine months ended September 30, 2013 were $176.9 million, or 30.7% of net revenues, compared with $183.5 million, or 29.9% of net revenues, in the first nine months of 2012.

On a non-GAAP basis, net revenues for the nine months ended September 30, 2013 were $574.2 million, compared to $606.6 million for the same period in 2012. Non-GAAP net income was $15.7 million, or $0.12 per diluted share, for the nine months ended September 30, 2013, compared with net income of $11.8 million, or $0.10 per diluted share, for the same period in 2012.

Dividend Declaration

The Board of Directors of GFI has declared a quarterly cash dividend of $0.05 per share payable on November 29, 2013 to shareholders of record as of November 15, 2013.

Non-GAAP Financial Measures

A reconciliation of these non-GAAP financial measures to GAAP is included in the financial tables attached to this release.

Conference Call

GFI has scheduled an investor conference call to discuss its third quarter results at 8:30 a.m. (Eastern Time) on Friday, October 25, 2013. Those wishing to listen to the live conference call via telephone should dial 1-800-870-4263 in North America and +1-412-317-0790 outside of North America, and ask for “GFI”.

Supplementary Financial Information

About GFI Group Inc.

Headquartered in New York, GFI was founded in 1987 and employs more than 2,000 people with additional offices in London, Paris, Nyon, Hong Kong, Seoul, Singapore, Manila, Tokyo, Sydney, Cape Town, Santiago, Bogota, Buenos Aires, Lima, Mexico City, Dubai, Dublin, Tel Aviv and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,600 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®, Trayport® and Kyte®.

Forward-looking Statement

– FINANCIAL TABLES FOLLOW –

GFI Group Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
(In thousands except share and per share data)


		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2013	2012	2013	2012
Revenues
	Agency commissions	$ 109,365	$ 112,239	$ 358,413	$ 380,276
	Principal transactions	41,841	50,278	143,468	164,830
	Total brokerage revenues	151,206	162,517	501,881	545,106
	Clearing services revenues	32,722	30,545	110,225	88,307
	Interest income from clearing services	455	422	1,623	1,325
	Equity in net earnings of unconsolidated businesses	1,566	2,344	6,925	6,242
	Software, analytics and market data	22,472	21,204	66,438	61,671
	Other income	4,012	2,356	12,011	14,642
	Total revenues	212,433	219,388	699,103	717,293

Interest and transaction-based expenses
	Transaction fees on clearing services	31,620	29,420	106,952	84,988
	Transaction fees on brokerage services	4,430	5,734	15,572	18,012
	Interest expense from clearing services	143	82	390	680
	Total interest and transaction-based expenses	36,193	35,236	122,914	103,680
	Revenues, net of interest and transaction-based expenses	176,240	184,152	576,189	613,613

Expenses
	Compensation and employee benefits	121,109	130,499	392,737	421,927
	Communications and market data	13,747	15,269	41,077	46,629
	Travel and promotion	7,380	7,973	23,298	27,347
	Rent and occupancy	7,901	7,083	22,152	20,759
	Depreciation and amortization	8,320	9,246	24,962	27,502
	Professional fees	5,712	5,925	18,824	17,470
	Interest on borrowings	7,612	6,738	22,475	20,080
	Other expenses	5,615	8,586	24,138	23,730
	Total other expenses	177,396	191,319	569,663	605,444

(Loss) income before (benefit from) provision for income taxes		(1,156)	(7,167)	6,526	8,169

(Benefit from) provision for income taxes		(1,127)	1,638	(5,267)	6,699

Net (loss) income before attribution to non-controlling stockholders		(29)	(8,805)	11,793	1,470

Less: Net income (loss) attributable to non-controlling interests		432	(112)	889	51
GFI’s net (loss) income		$ (461)	$ (8,693)	$ 10,904	$ 1,419


Basic (loss) earnings per share		$ 0.00	$ (0.08)	$ 0.09	$ 0.01
Diluted (loss) earnings per share		$ 0.00	$ (0.08)	$ 0.09	$ 0.01

Weighted average shares outstanding – basic		120,331,179	115,541,373	118,138,756	116,073,488

Weighted average shares outstanding – diluted		120,331,179	115,541,373	126,858,459	123,570,110



GFI Group Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
As a Percentage of Net Revenues


		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2013	2012	2013	2012
Revenues
	Agency commissions	62.1%	60.9%	62.2%	62.0%
	Principal transactions	23.7%	27.3%	24.9%	26.9%
	Total brokerage revenues	85.8%	88.2%	87.1%	88.9%
	Clearing services revenues	18.5%	16.6%	19.1%	14.4%
	Interest income from clearing services	0.3%	0.2%	0.3%	0.2%
	Equity in net earnings of unconsolidated businesses	0.9%	1.3%	1.2%	1.0%
	Software, analytics and market data	12.7%	11.5%	11.5%	10.0%
	Other income	2.3%	1.3%	2.1%	2.4%
	Total revenues	120.5%	119.1%	121.3%	116.9%

Interest and transaction-based expenses
	Transaction fees on clearing services	17.9%	16.0%	18.5%	13.9%
	Transaction fees on brokerage services	2.5%	3.1%	2.7%	2.9%
	Interest expense from clearing services	0.1%	0.0%	0.1%	0.1%
	Total interest and transaction-based expenses	20.5%	19.1%	21.3%	16.9%
	Revenues, net of interest and transaction-based expenses	100.0%	100.0%	100.0%	100.0%

Expenses
	Compensation and employee benefits	68.7%	70.9%	68.2%	68.8%
	Communications and market data	7.8%	8.3%	7.1%	7.6%
	Travel and promotion	4.2%	4.3%	4.0%	4.4%
	Rent and occupancy	4.5%	3.8%	3.9%	3.4%
	Depreciation and amortization	4.7%	5.0%	4.3%	4.5%
	Professional fees	3.3%	3.2%	3.3%	2.8%
	Interest on borrowings	4.3%	3.7%	3.9%	3.3%
	Other expenses	3.2%	4.7%	4.2%	3.9%
	Total other expenses	100.7%	103.9%	98.9%	98.7%

(Loss) income before (benefit from) provision for income taxes		-0.7%	-3.9%	1.1%	1.3%

(Benefit from) provision for income taxes		-0.6%	0.9%	-0.9%	1.1%

Net (loss) income before attribution to non-controlling stockholders		-0.1%	-4.8%	2.0%	0.2%

Less: Net income (loss) attributable to non-controlling interests		0.2%	-0.1%	0.1%	0.0%
GFI’s net (loss) income		-0.3%	-4.7%	1.9%	0.2%

GFI Group Inc. and Subsidiaries
Selected Financial Data (unaudited)
(Dollars in thousands except per share data)


		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2013	2012	2013	2012

Brokerage Revenues by Product Categories:
	Fixed Income	$ 41,583	$ 43,823	$ 136,903	$ 149,238
	Financial	44,700	45,303	151,030	143,435
	Equity	25,866	30,868	90,188	105,046
	Commodity	39,057	42,523	123,760	147,387

	Total brokerage revenues	$ 151,206	$ 162,517	$ 501,881	$ 545,106


Brokerage Revenues by Geographic Region:
	Americas	$ 60,035	$ 62,121	$ 201,518	$ 215,327
	Europe, Middle East, and Africa	75,213	81,999	244,467	269,015
	Asia-Pacific	15,958	18,397	55,896	60,764

	Total brokerage revenues	$ 151,206	$ 162,517	$ 501,881	$ 545,106




		September 30,	December 31,
		2013	2012

Consolidated Statement of Financial Condition Data:
	Cash and cash equivalents	$ 168,878	$ 227,441
	Cash held at clearing organizations, net of customer cash	56,394	19,636
	GFI’s total balance sheet cash	225,272	247,077
	Balance sheet cash per share	1.83	2.11

	Total assets (1)	1,531,750	1,180,061
	Total debt	250,000	250,000
	Stockholders’ equity	433,652	425,082


Selected Statistical Data:
	Brokerage personnel headcount (2)	1,144	1,188
	Employees	2,072	2,062
	Broker productivity for the period (3)	$ 132	$ 125

	(1)	Total assets include receivables from brokers, dealers and clearing organizations of $647.0 million and $252.7 million at September 30, 2013 and December 31, 2012, 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, as well as balances with clearing organizations. These receivables are substantially offset by corresponding payables to brokers, dealers and clearing organizations and to clearing customers, for these unsettled transactions.
	(2)	Brokerage personnel headcount includes brokers, traders, 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		Nine Months Ended
	September 30,		September 30,
	2013	2012	2013	2012

GAAP revenues	$ 212,433	$ 219,388	$ 699,103	$ 717,293
Mark-to-market loss on forward hedges of future foreign currency revenues	804	608	154	287
Fair value mark-to-market gain on future purchase commitment	–	(2,081)	(2,203)	(9,098)
Fair value mark-to-market loss on warrants on investee shares	–	1,709	22	1,837
Total Non-GAAP Revenues	213,237	219,624	697,076	710,319

GAAP interest and transaction-based expenses	36,193	35,236	122,914	103,680

Non-GAAP revenues, net of interest and transaction-based expenses	177,044	184,388	574,162	606,639

GAAP other expenses	177,396	191,319	569,663	605,444
Amortization of intangibles	(2,339)	(2,922)	(7,308)	(8,762)
Closure of certain desks in Asia	–	(637)	–	(1,578)
Writedown of available for sale securities	–	(2,662)	–	(5,362)
Expenses from start-up operations	–	–	(8,573)	–
Duplicate rent	(345)	–	(345)	–
Non-GAAP other expenses	174,712	185,098	553,437	589,742

Non-GAAP pre-tax income (loss)	2,332	(710)	20,725	16,897

Income tax impact on Non-GAAP items	1,593	4,987	6,757	6,265
Plus: Non-operating adjustment for the recognition of a tax benefit related to the repatriation of international profits	–	(5,284)	–	(5,284)
Plus: Non-operating adjustment for the recognition of a tax (benefit) provision related to interest income between international affiliates	–	(2,611)	2,655	(2,611)
Non-GAAP provision for (benefit from) income taxes	466	(1,270)	4,145	5,069

Less: Net income (loss) attributable to non-controlling interests	432	(112)	889	51

GFI’s Non-GAAP net income	$ 1,434	$ 672	$ 15,691	$ 11,777

Non-GAAP diluted net income per share	$ 0.01	$ 0.01	$ 0.12	$ 0.10

Pre-tax adjustments to arrive at cash earnings
Amortization of RSUs	6,870	7,751	22,372	24,633
Amortization of prepaid sign-on and retention bonuses	5,938	6,296	19,328	18,932
Depreciation and other amortization	5,981	6,324	17,654	18,740
Total pre-tax adjustments to cash earnings	18,789	20,371	59,354	62,305

Non-GAAP pre-tax cash earnings from ongoing operations	21,121	19,661	80,079	79,202

Non-GAAP provision for (benefit from) income taxes	466	(1,270)	4,145	5,069

Less: Net income (loss) attributable to non-controlling interests	432	(112)	889	51

GFI’s Non-GAAP net cash earnings from ongoing operations	$ 20,223	$ 21,043	$ 75,045	$ 74,082

Non-GAAP cash earnings per share	$ 0.16	$ 0.17	$ 0.59	$ 0.60

Weighted average shares outstanding – diluted	128,389,013	122,394,648	126,858,459	123,570,110

GFI Group Inc.
Adjusted EBITDA

($ in ‘000’s, except share and per share amounts)	3Q12	4Q12	1Q13	2Q13	3Q13	Last twelve months (LTM)

Net (loss) income per U.S. GAAP before attribution to non-controlling interests	$ (8,805)	$ (11,114)	$ 4,954	$ 6,868	$ (29)

Plus: Net loss (income) attributable to non-controlling interests	112	(258)	(280)	(177)	(432)
GFI’s net (loss) income	(8,693)	(11,372)	4,674	6,691	(461)

Plus: Extraordinary and other non-recurring pretax items (i.e., non-GAAP adjustments)	6,457	3,013	9,220	1,491	3,488

Plus: Interest expense	6,820	7,098	7,848	7,262	7,755

Less: Interest income	(614)	(849)	(928)	(579)	(630)

Plus: Income tax expense (benefit)	1,638	1,688	(4,859)	719	(1,127)

Plus: Depreciation and amortization expense (excluding intangibles)	6,324	6,591	5,810	5,863	5,981

Plus: Amortization of RSUs	7,751	7,732	8,142	7,360	6,870

Plus: Amortization of prepaid sign-on and retention bonuses	6,296	6,540	6,112	7,278	5,938

Adjusted EBITDA	$ 25,979	$ 20,441	$ 36,019	$ 36,085	$ 27,814	$ 120,359

Weighted average shares outstanding – diluted						126,858,459

Adjusted EBITDA per share (pre-tax)						$ 0.95

SOURCE GFI Group Inc.

Bank of Communications Enhances FX Options Analysis with Fenics ProfessionalTM

Major Chinese Bank deploys FENICS® Middleware Solution

New York, September 11, 2013 – FENICS®, a leading provider of FX options software, announced today that Bank of Communications, a leading global financial services group based in Shanghai, has licensed FENICS ProfessionalTM, a pricing and risk management system for foreign exchange options. The bank will be able to deploy FENICS Professional globally with improved system integration.

Richard Brunt, Managing Director of FENICS said, “We are very pleased Bank of Communications has recently extended their subscription to FENICS Professional and are also now benefitting from a more sophisticated and integrated front to back FX Options workflow as a result of close collaboration with the FENICS Professional Services team. Our continued investment in technology coupled with an industry leading consulting division means we have been very well placed to assist our clients with their integration requirements no matter the level of complexity involved.”

Jeffrey Jin at Bank of Communications said, “We have found that the flexibility in analysing our positions is key to enhancing operations. We have selected FENICS Professional on the basis of its ability to provide this analysis and to also to connect to our back office system seamlessly, making our business more efficient”

Bank of Communications has been a customer of FENICS since 2009.

Founded in 1908, Bank of Communications (BOCOM) is one of the four oldest banks in China and one of the first note-issuing banks in China. On April 1st 1987, as the pioneer of China’s financial revolution, BOCOM became China’s first state-owned shareholding commercial bank. BOCOM is headquartered in Shanghai.
FENICS Professional is a suite of pricing, distribution, risk management, analytics and STP (straight-through processing) components allowing customers to control, monitor and oversee a comprehensive range of FX option trading and lifecycle management from one single interface.

FENICS is licensed to over 350 clients worldwide, financial institutions and corporations, with thousands of users benefiting from its solutions.

———————————-

About FENICS www.FENICS.com
FENICS® Software Limited is a wholly owned subsidiary of GFI Group Inc., a leading provider of wholesale brokerage services and trading support products in a multitude of global cash and derivatives markets.

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.

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com

GFI ForexMatch® and GFI Direct Receive Profit and Loss Annual Readers’ Choice Awards

GFI ForexMatch voted Best Emerging Market Platform and Best FX Options Matching GFI Direct voted Best FX Options Request for Stream

New York, June 17, 2013 – GFI Group Inc. (NYSE: “GFIG”), a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, today announced that its electronic market for FX products GFI ForexMatch® was voted Best Emerging Market Platform and Best FX Options Matching and that its RFQ trading protocol GFI Direct was chosen as Best FX Options Request for Stream by Profit and Loss magazine readers.

Profit and Loss magazine announced on May 30, 2013 during the dinner held to close their Annual New York conference the winners of the Annual Readers’ Choice Awards.

Paul Millward, Head of FX eMarkets said: “We are delighted to have won these awards from Profit and Loss magazine. The quality and versatility of our electronic trading platforms is the product of our technology and e-markets team working closely with our brokers to address changing market structures and customer needs. We are ready to apply for a SEF license as soon as this is made possible by the CFTC”.

For the sixth consecutive year, Profit & Loss opened its website in May for readers to vote for the best bank, broker and service provider across 15 key categories. Over 3,000 votes were registered this year.

The Awards are open to both banks and non-banking organisations and recognise the efforts of the industry in providing the tools and functionality that make trading FX more efficient.

———————-

About GFI Group Inc.
GFI Group Inc. (NYSE: “GFIG”) is a leading provider of wholesale brokerage services, clearing services, 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 2,100 people with additional offices in London, Paris, Nyon, Hong Kong, Manila, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogota, Buenos Aires, Lima, Dubai, Dublin, Tel Aviv, Los Angeles and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,600 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

Forward-looking statement

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com

GFI Group Builds Next Generation Trading Infrastructure with Violin Memory

Cutting edge technology to increase speed and data storage

New York, May 21, 2013 – GFI Group Inc. (NYSE: “GFIG”), a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets announced it will deploy Flash Memory Arrays from Violin Memory to increase the speed and capacity of its trading platforms across all assets classes.

Replacing spinning disks with solid state storage is part of a larger project GFI is implementing to prepare its electronic trading infrastructure for its planned Futures Exchange “DCM” and Swap Execution Facility “SEF”.

Jerry Dobner, Chief Technology Officer at GFI Group said, “We looked to increase the speed, capacity, and density of our shared data storage platform and turned to Violin Memory to assist us. By embracing this new technology, our clients will benefit from faster transaction speeds and a highly scalable electronic trading infrastructure”

We are excited about GFI’s choice of Violin Memory, as it continues to prove that purpose built memory based solutions are the next step in IT infrastructure evolution”, said Don Basile, CEO of Violin Memory. “Real time information access is today’s reality and Violin is building solutions to enable organizations like GFI, which rely on timely information access, to achieve their business goals.

Violin Memory delivers storage at the speed of memory, accelerating business critical applications and enabling fully virtualized and optimized IT infrastructures. Violin’s Flash Memory Arrays are all-silicon shared storage systems built from the ground up to harness the full power of flash memory and deliver industry leading performance and ultra-low data access latencies. With support for latencies in the 100s of microseconds sustained and 1 Million IOPS in a single 3 Rack Unit (RU) form factor, Violin is driving economics through performance.

—————————-

About GFI Group Inc.

Headquartered in New York, GFI was founded in 1987 and employs more than 2,100 people with additional offices in London, Paris, Nyon, Hong Kong, Manila, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogota, Buenos Aires, Lima, Dubai, Dublin, Tel Aviv, Los Angeles and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,600 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®, Trayport® and Kyte®.

About Violin Memory, Inc.

Violin Memory is pioneering a new class of high-performance flash-based storage systems that are designed to bring storage performance in-line with high-speed applications, servers and networks. Violin Flash Memory Arrays are specifically designed at each level of the system architecture starting with memory and optimized through the array to leverage the inherent capabilities of flash memory and meet the sustained high-performance requirements of business critical applications, virtualized environments and Big Data solutions in enterprise data centers. Specifically designed for sustained performance with high reliability, Violin’s Flash Memory Arrays can scale to hundreds of terabytes and millions of IOPS with low, predictable latency. Founded in 2005, Violin Memory is headquartered in Mountain View, California. For more information about Violin Memory products, visit www.vmem.com.

Forward-looking statement

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com

Eastwick
Jayne Scuncio
415.820. 4164
violin@eastwick.com

GFI Group Acquires Team from Phoenix Partners Group

Economies of Scale and Seamless Integration expected

New York, May 8, 2013 – GFI Group Inc. (NYSE: “GFIG”) announced today that it has agreed to acquire certain assets of Phoenix Partners Group, an independent interdealer broker operating mainly in the international credit and equity markets. As part of the transaction, GFI will be taking on approximately 32 brokers (divided between New York and London offices) and additional operational and management staff.

Headquartered in New York with an additional office in London, Phoenix Partners Group provides a range of intermediary services to a largely institutional, financial client base, in credit and equities. In credit, Phoenix follows a hybrid business model, combining voice broking with electronic execution.

Colin Heffron, CEO GFI Group, commenting on today’s announcement, said: “We are very pleased to welcome the team from Phoenix Partners into GFI Group. Nick Stephan and Marcos Brodsky and their team share with us the same commitment to providing customers with an execution model that allows for experienced brokers to work hand in hand with the most sophisticated trading technology. This transaction presents numerous synergies and opportunities that we look forward to executing alongside our new colleagues”.

Nick Stephan, CEO of Phoenix Partners Group said: “This is an exciting moment for our team. We are very happy to be joining GFI, who has a highly focused business model and a firm belief in the critical role experience and technology provide. GFI is an innovator in the brokerage space and we will work to contribute to expanding its presence in the market”.

————————————-

About GFI Group Inc.

Headquartered in New York, GFI was founded in 1987 and employs more than 2,100 people with additional offices in London, Paris, Nyon, Hong Kong, Manila, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogota, Buenos Aires, Lima, Dubai, Dublin, Tel Aviv, Los Angeles and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,600 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®, Trayport® and Kyte®.

Forward-looking statement

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com

Fenics And E.SUN Commercial Bank Agree To Extend Use Of Fenics Professional™

Premier Taiwanese bank to extend roll-out of market-leading FX options system

New York, May 6, 2013 – FENICS® Software Ltd, a GFI Group Inc. (NYSE:”GFIG”) company, announced today that E.SUN Commercial Bank Ltd., a leading Taiwanese Commercial Bank, has extended its license for the use of FENICS Professional™.

FENICS Professional provides E.SUN Commercial Bank with capabilities such as volatility surface management, Internal RFQ (request for quotes) and automatic term sheet generation. The bank has been a customer of FENICS® since 2004.

“We are very proud that E.SUN Commercial Bank has chosen to expand their usage of our software and renew its contract with us for the use of FENICS Professional. Our excellent relationship with the bank goes back almost 10 years”, said Elliott Hann, Commercial Director of FENICS, and added, “This is an exciting time for us as we continue to bring new and innovative capabilities to market through our FENICS Professional service”.

Mr. Peter Shih, Executive Vice President & General Manager, at E.SUN Commercial Bank Treasury Division commented: “E.SUN Commercial Bank encourages innovation in all areas and FENICS Professional fits our strategy in helping to streamline procedures and support innovation in our Foreign Exchange products. E SUN Commercial Bank is pleased to expand and continue this long standing partnership with FENICS”.

Headquartered in Taipei, E.SUN Commercial bank was founded in 1989 under the leadership of Chairman Mr. Yung-Jen Huang and commenced operations in 1992. The passage of the Financial Holding Company Law in 2001 paved the way for birth of E.SUN Financial Holding Company Ltd, on January 28, 2002. E.SUN Commercial Bank provides complete financial services inclusive of corporate, personal, wealth management, credit card, and treasury division.

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

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. Clients include banks, multinational corporations, brokers, and hedge funds.

About FENICS®

FENICS has more than 25 years’ experience of providing intuitive price discovery software to currency derivative markets. Its ability to deliver powerful and accurate price discovery and revaluation is enhanced by GFI’s presence as an important independent intermediary in OTC markets. FENICS analytics is supported with an abundance of independent market data sourced directly from GFI’s trading systems. FENICS’ leading foreign exchange option pricing and analysis tool is licensed for use at over 350 client sites worldwide. FENICS operates from offices in London, New York, Shanghai, Singapore, Hong Kong, Tokyo and Sydney.

Forward-looking statement

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com

Category: news

GFI Group Inc. Announces Fourth Quarter and Full Year 2013 Results; Declares Quarterly Cash Dividend

GFI Group To Provide Credit Suisse and UBS Sponsored Access Functionality For Interest Rate Swaps

Nittan Capital Selects FENICS Professional for FX Options Workflow Analysis

FENICS® Releases Next Generation of Exotic Pricing Models

GFI Group Inc. Announces Third Quarter 2013 Results; Declares Quarterly Cash Dividend

Bank of Communications Enhances FX Options Analysis with Fenics ProfessionalTM

GFI ForexMatch® and GFI Direct Receive Profit and Loss Annual Readers’ Choice Awards

GFI Group Builds Next Generation Trading Infrastructure with Violin Memory

GFI Group Acquires Team from Phoenix Partners Group

Fenics And E.SUN Commercial Bank Agree To Extend Use Of Fenics Professional™

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