Cantor Fitzgerald

Last updated

Cantor Fitzgerald, L.P.
Limited partnership
Industry Banking, Financial services
Founded1945;74 years ago (1945)
Headquarters New York City
Key people
Howard W. Lutnick (Chairman and CEO) [1]
Anshu Jain (President, Cantor Fitzgerald & Co.) [2]
Products Financial services
Investment banking
Website www.cantor.com OOjs UI icon edit-ltr-progressive.svg

Cantor Fitzgerald is an American financial services firm that was founded in 1945. It specializes in institutional equity, fixed income sales and trading, and serving the middle market with investment banking services, prime brokerage, and commercial real estate financing. It is also active in new businesses, including advisory and asset management services, gaming technology, and e-commerce. It has more than 5,000 institutional clients.

Financial services economic service provided by the finance industry

Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, individual managers and some government-sponsored enterprises. Financial services companies are present in all economically developed geographic locations and tend to cluster in local, national, regional and international financial centers such as London, New York City, and Tokyo.

An Investment bank is a financial services company or corporate division that engages in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated with corporate finance, such a bank might assist in raising financial capital by underwriting or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, and FICC services. Most investment banks maintain prime brokerage and asset management departments in conjunction with their investment research businesses. As an industry, it is broken up into the Bulge Bracket, Middle Market, and boutique market.

Prime brokerage is the generic name for a bundled package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return. The prime broker provides a centralized securities clearing facility for the hedge fund so the hedge fund's collateral requirements are netted across all deals handled by the prime broker. These two features are advantageous to their clients.

Contents

Cantor Fitzgerald is one of 22 primary dealers that are authorized to trade US government securities with the Federal Reserve Bank of New York.

A primary dealer is a firm that buys government securities directly from a government, with the intention of reselling them to others, thus acting as a market maker of government securities. The government may regulate the behavior and number of its primary dealers and impose conditions of entry. Some governments sell their securities only to primary dealers; some sell them to others as well. Governments that use primary dealers include Australia, Belgium, Brazil, Canada, China, France, Hong Kong, India, Italy, Japan, Singapore, Spain, the United Kingdom, and the United States.

Federal Reserve Bank of New York

The Federal Reserve Bank of New York is one of the 12 Federal Reserve Banks of the United States. It is located at 33 Liberty Street, New York, New York. It is responsible for the Second District of the Federal Reserve System, which encompasses New York State, the 12 northern counties of New Jersey, Fairfield County in Connecticut, Puerto Rico, and the U.S. Virgin Islands. Working within the Federal Reserve System, the Federal Reserve Bank of New York implements monetary policy, supervises and regulates financial institutions and helps maintain the nation's payment systems.

Cantor Fitzgerald's 1,600 employees work in more than 30 locations, including financial centers in the Americas, Europe, Asia-Pacific, and the Middle East. Together with its affiliates, Cantor Fitzgerald operates in more than 60 offices in 20 countries and has more than 8,500 employees.

Americas Landmass comprising North America, Central America and South America

The Americas comprise the totality of the continents of North and South America. Together, they make up most of the land in Earth's western hemisphere and comprise the New World.

Europe Continent in the Northern Hemisphere and mostly in the Eastern Hemisphere

Europe is a continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, Asia to the east, and the Mediterranean Sea to the south. It comprises the westernmost part of Eurasia.

Asia-Pacific part of the world in or near the Western Pacific Ocean; typically includes East Asia, South Asia, Southeast Asia, and Oceania

Asia-Pacific or Asia Pacific is the part of the world in or near the Western Pacific Ocean. The Asia-Pacific varies in area depending on which context, but it typically includes much of East Asia, South Asia, Southeast Asia, and Oceania.

In 2011, Cantor's affiliate, BGC Partners, expanded into commercial real estate services by its purchase of Newmark Knight Frank and the assets of Grubb & Ellis, to form Newmark Grubb Knight Frank.

BGC Partners American global financial services company

BGC Partners is an American global financial services company based in New York City. Originally formed as part of the larger Cantor Fitzgerald organization, BGC Partners became its own entity in 2004.

Early history

Cantor Fitzgerald was formed in 1945 by Bernard Gerald Cantor and John Fitzgerald as an investment bank and brokerage business. It later became known for its computer-based bond brokerage, for the quality of its institutional distribution business model, and for being the market's premier dealer of government securities. [3]

Bernard Gerald Cantor was the founder and chairman of securities firm Cantor Fitzgerald.

In 1965, Cantor Fitzgerald began "large block" sales/trading of equities for institutional customers. It became the world's first electronic marketplace for US government securities in 1972 and in 1983, it was the first to offer worldwide screen brokerage services in US government securities.

In 1991, Howard Lutnick was named president and CEO of Cantor Fitzgerald; he became chairman of Cantor Fitzgerald, L.P., in 1996. [4]

Howard William Lutnick is an American billionaire businessman, who succeeded Bernard Gerald Cantor as the head of Cantor Fitzgerald. Lutnick is the chairman and CEO of Cantor Fitzgerald and BGC Partners. After losing 658 employees, including his brother, in the September 11 attacks, Lutnick has become known for his charity efforts through the Cantor Fitzgerald Relief Fund, which helps to aid families of the attacks and natural disasters.

9/11 attacks

1 World Trade Center (North Tower), the building with the antenna to the left, included the corporate headquarters of Cantor Fitzgerald. World Trade Center, New York City - aerial view (March 2001).jpg
1 World Trade Center (North Tower), the building with the antenna to the left, included the corporate headquarters of Cantor Fitzgerald.

Cantor Fitzgerald's corporate headquarters and New York City office, [5] [6] on the 101st to the 105th floors of One World Trade Center in Lower Manhattan (2 to 6 floors above the impact zone of a hijacked airliner), were destroyed during the September 11, 2001 attacks. At 8:46:46 a.m., six seconds after the tower was struck by the plane, a Goldman Sachs server issued an alert saying that its trading system had gone offline because it was unable to connect with the server. [7] [8] [9] Cantor Fitzgerald lost 658 of its New York employees, 68% of its workforce, which was considerably more than any of the other World Trade Center tenants or the New York City Police Department, the Port Authority of New York and New Jersey Police Department, the New York City Fire Department, or the United States Department of Defense. Lutnick's brother was among those killed as the stairwells below them were destroyed or blocked by the plane crash. Lutnick vowed to keep the company alive, and the company was able to bring its trading markets back online within a week.

On September 19, Cantor Fitzgerald made a pledge to distribute 25% of the firm's profits for the next five years, and it committed to paying for ten years of health care for the benefit of the families of its 658 former Cantor Fitzgerald, eSpeed, and TradeSpark employees (profits that would otherwise have been distributed to the Cantor Fitzgerald partners). [10] In 2006, the company had completed its promise, having paid a total of $180 million (and an additional $17 million from a relief fund run by Lutnick's sister, Edie). [11]

Until the attacks, Cantor had handled about a quarter of the daily transactions in the multitrillion-dollar treasury security market. Cantor Fitzgerald has since rebuilt its infrastructure, partly by the efforts of its London office, [12] and it now has its headquarters in Midtown Manhattan. The company's effort to regain its footing was the subject of Tom Barbash's 2003 book On Top of the World: Cantor Fitzgerald, Howard Lutnick, and 9/11: A Story of Loss and Renewal as well as a 2012 documentary, Out of the Clear Blue Sky.

On September 2, 2004, Cantor and other organizations filed a civil lawsuit against Saudi Arabia for allegedly providing money to the hijackers and Al Qaeda. [13] It was later joined in the suit by the Port Authority of New York. [14] Most of the claims against Saudi Arabia were dismissed on January 18, 2005. [15]

In December 2013, Cantor Fitzgerald settled its lawsuit against American Airlines for $135 million. Cantor Fitzgerald had been suing for loss of property and interruption of business by alleging the airline to have been negligent by allowing hijackers to board Flight 11. [16]

Recent history

In 2003, the firm launched its fixed income sales and trading group.

In 2006, the Federal Reserve added Cantor Fitzgerald & Co. to its list of primary dealers.

In 2009, the firm launched Cantor Prime Services, a provider of multi-asset, perimeter brokerage prime brokerage platforms to exploit its clearing, financing, and execution capabilities.

Cantor Fitzgerald began building its real estate business with the launch of CCRE in 2010.

On December 5, 2014, two Cantor Fitzgerald analysts were said to be in the top 25 analysts on TipRanks. [17]

Philanthropy

Edie wrote An Unbroken Bond: The Untold Story of How the 658 Cantor Fitzgerald Families Faced the Tragedy of 9/11 and Beyond. All proceeds from the sale of the book benefit the Cantor Fitzgerald Relief Fund and the charities that it assists. [18]

The Cantor Fitzgerald Relief Fund provided $10 million to families affected by Hurricane Sandy. Howard Lutnick and the Relief Fund "adopted" 19 elementary schools in impacted areas by distributing $1,000 prepaid debit cards to each family from the schools. [19] A total of $10 million in funds was given to families affected by the storm. [20]

Two days after the 2013 Moore tornado struck Moore, Oklahoma, killing 24 people and injuring hundreds, Lutnick pledged to donate $2 million to families affected by the tornado. The donation was given out in the form of $1,000 debit cards given out to families. [21] [22]

Each year, on September 11, Cantor Fitzgerald and its affiliate, BGC Partners, donate 100% of their revenue to charitable causes on their annual Charity Day, which was originally established to raise money to assist the families of the Cantor employees who died in the World Trade Center attacks. [23] Since its inception, Charity Day has raised $110 million for charities globally. [24]

Subsidiaries and affiliates

The firm has many subsidiaries and affiliates such as the following:

Management and directors

Criticism

An employee, Venetia Thompson, published, in February 2008, an article in The Spectator about her and her colleagues' behavior, with an emphasis on the drinking culture. [27] She was subsequently fired for gross misconduct. She responded in 2010 by publishing a book, Gross Misconduct: My Year of Excess in the City, about her experiences. [28]

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References

  1. "Howard Lutnick bio" . Retrieved June 15, 2012.
  2. "Anshu Jain bio". Archived from the original on March 29, 2017. Retrieved June 15, 2012.
  3. "About Us". Cantor Fitzgerald. Retrieved February 6, 2015.
  4. "Executive Profile Howard W. Lutnick". Bloomberg Businessweek . February 11, 2015.
  5. "office locations." Cantor Fitzgerald. March 4, 2000. Retrieved on October 4, 2009.
  6. "office locations." Cantor Fitzgerald. August 9, 2001. Retrieved on October 4, 2009.
  7. September 11, 2001 08:46:46 Arch [1612975] D ALPHA
  8. McCullagh, Declan (November 25, 2009). "Egads! Confidential 9/11 Pager Messages Disclosed". CBS News. Retrieved January 8, 2017.
  9. "9/11 hit home for Scott Auker". Manheim Central News. September 11, 2011. Retrieved June 25, 2012.
  10. Diebel, Matthew; Cahli, Petra; Navrrao, Bruno; McCartney, Ryan; Bratu, Becky (2010). "Iconic 9/11 figures: Where are they now?". Today.com. NBC.
  11. Jessica Pressler (August 27, 2011). "The Encyclopedia of 9/11: Cantor Fitzgerald: The firm that lost the most". New York .
  12. David Cohen (September 11, 2009). "Cantor Fitzgerald... the City firm that rose from the 9/11 ashes". London Evening Standard .
  13. WTC agency sues Saudis over 9/11, BBC News Online, September 11, 2004
  14. Port Authority to Join Suit Against Saudi Arabia Over 9/11 Attack, Associated Press, September 13, 2004
  15. Glovin, David (January 18, 2005). "Saudi Arabia Wins Dismissal From Sept. 11 Lawsuits (Update1)". Bloomberg. Retrieved October 19, 2012.
  16. Benjamin Weiser (December 17, 2013). "Cantor Fitzgerald Settles 9/11 Suit Against American Airlines for $135 Million". The New York Times. Retrieved December 18, 2013.
  17. "Cantor Fitzgerald Research Analysts Youssef Squali and Brian White Recognized In TipRanks' Top 25 Analysts on Wall Street Ranking | Cantor Fitzgerald". www.cantor.com. Archived from the original on February 10, 2015. Retrieved May 6, 2017.
  18. Lutnick, Edie (September 11, 2012). "Honor the Past By Building a Positive Future". Huffington Post.
  19. "Cantor Fitzgerald, Robin Hood Sandy Aid Tops $70 Million". Bloomberg.
  20. "Cantor Fitzgerald gives $10M to victims". Crain's New York Business. Bloomberg. Retrieved December 6, 2013.
  21. Wells, Jesse. "NEW: NY group in 9/11 makes $1000 donations to May 20th storm victims". KFOR-TV. KFOR. Retrieved December 6, 2013.
  22. "$1000 gift cards given". NewsOK. NewsOK.com.
  23. "Princes Break Trading World Record As Celebs Raise $12M for Charity". Look to the Stars. September 16, 2013.
  24. "Princes Break Trading World Record As Celebs Raise $12M for Charity". Look to the Stars. September 16, 2013. Retrieved March 21, 2017.
  25. Dave, Paresh (June 27, 2013). "TopLine gets $25 million to launch short-term fantasy game platform". Los Angeles Times. Tribune. Retrieved December 6, 2013.
  26. 1 2 3 4 "MANAGEMENT TEAM". Cantor Fitzgerald. Retrieved December 6, 2013.
  27. Thompson, Venetia (February 6, 2008). "Essex and the City: my life as a 'posh bird' broker". The Spectator . Retrieved October 6, 2016.
  28. Thompson, Venetia (February 4, 2010). Gross Misconduct: My Year of Excess in the City. Simon & Schuster, Limited. ISBN   9781847376169.