New CFTC Rules and Regulations Critical for Near Term Performance of Electronic Trading Exchange Companies: an Exclusive Wall Street Transcript Interview with the CEO of the GFI Group
67 WALL STREET, New York - April 9, 2013 - The Wall Street Transcript has just published its Investment Banks and Asset Management Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Consistent BDC Dividend Yield - Private Middle Market Funding - Decreased Bank Loan Competition - Exchanges Trading Volumes and Cash Flow - Increase In Investor Risk Tolerance - Asset Growth - Capital Flow Into Equities - Fixed Income Bonds
Companies include: GFI Group Inc. (GFIG)
In the following excerpt from the Investment Banks and Asset Management Report, the CEO of GFI Group discusses the outlook for his company for investors:
TWST: Can you elaborate a little bit about what you're doing to be prepared for those possible regulatory forks in the road?
Mr. Heffron: The CFTC Rules are due out anytime in the next 60 to 90 days. In addition, mandatory clearing will happen in certain asset classes staged in over the next year. GFI's Executive Vice President, Chris Giancarlo, has headed the WMBAA - Wholesale Markets Brokers' Association, Americas - twice in the last four years. He founded it together with a group of peer brokerage firms. This gives us a voice and an ear in Washington, which makes it easier to get fully prepared.
We're already providing electronic execution and post-trade confirmation and reporting. We've got electronic trading systems in energy, credit, foreign exchange and interest rates. The business has definitely moved more to electronic platforms - trading - and I believe that we lead the industry in that area.
TWST: Another thing you mentioned is your cost-cutting efforts. Could you tell us a little bit more about that - what you did in 2012, and what you've got in the works for 2013 to reduce costs?
Mr. Heffron: We are partnering with all of our employees to renegotiate contracts based on the realities of a new marketplace. Our headcount has gone down over the last year as trading volumes dropped. We think we're in a stable environment now, so it's just a matter of continuing to reduce fixed costs. That's a shift, and I think people understand that we see a longer-term mindset with a workforce that is more interested in being at a sustainable company and platform.
We think we're very well-positioned to hire the best talent and have them stay for long careers and enjoy a great company with a great culture and terrific trading platforms.
TWST: Tell us a bit about your technology and how you think it's putting you in a good position for this year.
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
