20 unchanged sentences
Receivables from broker-dealers, clearing organizations, customers and related broker-dealers and Payables to broker-dealers, clearing organizations, customers and related broker-dealers on the Company’s Consolidated Statements of Financial Condition primarily represent the simultaneous purchase and sale of the securities associated with those matched principal transactions that have not settled as of their stated settlement dates.
−Removed: BGC Partners’ experience has been that substantially all of these transactions ultimately settle at the contracted amounts.
+Added: BGC Partners’ experience has been that substantially all of these transactions ultimately settle at the contracted amounts, however, the ability to settle has the potential to be impacted by unforeseen circumstances.
Market risk refers to the risk that a change in the level of one or more market prices, rates, indices or other factors will result in losses for a specified position.
8 unchanged sentences
All positions held longer than intra-day are marked to market.
−Removed: We also have investments in marketable equity securities, which are publicly-traded, and which had a fair value of $0.4 million as of December 31, 2021.
−Removed: Investments in marketable securities carry a degree of risk, as there can be no assurance that the marketable securities will not lose value and, in general, securities markets can be volatile and unpredictable.
−Removed: As a result of these different market risks, our holdings of marketable securities could be materially and adversely affected.
−Removed: We may seek to minimize the effect of price changes on a portion of our investments in marketable securities through the use of derivative contracts.
−Removed: However, there can be no assurance that our hedging activities will be adequate to protect us against price risks associated with our investments in marketable securities.
−Removed: See Note 10—“Marketable Securities” and Note 12—“Derivatives” to our consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for further information regarding these investments and related hedging activities.
+Added: We also have investments in equity securities, which are publicly-traded, and which had a fair value of $0.3 million as of December 31, 2022.
+Added: Investments in equity securities carry a degree of risk, as there can be no assurance that the equity securities will not lose value and, in general, securities markets can be volatile and unpredictable.
+Added: As a result of these different market risks, our holdings of equity securities could be materially and adversely affected.
+Added: We may seek to minimize the effect of price changes on a portion of our investments in equity securities through the use of derivative contracts.
+Added: However, there can be no assurance that our hedging activities will be adequate to protect us against price risks associated with our investments in equity securities.
+Added: See Note 11—“Derivatives” and Note 12—“Fair Value of Financial Assets and Liabilities” to our
+Added: Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K for further information regarding these investments and related hedging activities.
Our risk management procedures and strict limits are designed to monitor and limit the risk of unintended loss and have been effective in the past.
21 unchanged sentences
The majority of the Company’s foreign currency exposure is related to the U.S.
−Removed: Dollar versus the British Pound and the Euro.
−Removed: While our international results of operations, as measured in U.S.
−Removed: Dollars, are subject to FX fluctuations, we do not consider the related risk to be material to our results of operations.
−Removed: For the financial assets and liabilities denominated in the British Pound and Euro, including foreign currency hedge positions related to these currencies, we evaluated the effects of a 10% shift in exchange rates between those currencies and the U.S.
+Added: dollar versus the pound sterling and the euro.
+Added: For the financial assets and liabilities denominated in the pound sterling and euro, including foreign currency hedge positions related to these currencies, we evaluated the effects of a 10% shift in exchange rates between those currencies and the U.S.
dollar, holding all other assumptions constant.
The analysis identified the stress-tested scenario as the U.S.
−Removed: Dollar strengthening against the Euro and weakening against the British Pound.
+Added: dollar weakening against both the euro and against the pound sterling.
If as of December 31, 2022, the U.S.
−Removed: Dollar had strengthened against the Euro and weakened against the British Pound by 10%, the currency movements would have had an aggregate negative impact on our net income of approximately $1.7 million.
+Added: dollar had weakened against both the euro and the pound sterling by 10%, the currency movements would have had an aggregate negative impact on our net income of approximately $5.2 million.
Interest Rate Risk
2 unchanged sentences
In addition, as of December 31, 2022, BGC Partners had no borrowings outstanding under its Revolving Credit Agreement.
−Removed: The interest rate on any borrowings under its Revolving Credit Agreement is based on LIBOR.
+Added: The Revolving Credit Agreement interest rate on borrowings was previously based on LIBOR or a defined base rate plus additional margin.
+Added: On March 10, 2022, the Revolving Credit Agreement was amended, restated and increased, and the corresponding interest rate on any borrowings under its Revolving Credit Agreement is based on SOFR or a defined base rate plus additional margin.
Disaster Recovery
5 unchanged sentences
Our data centers are generally built and equipped to best-practice standards of physical security with appropriate environmental monitoring and safeguards.
−Removed: Failover for the majority of our systems is automated.
−Removed: The economic and financial disruptions from the COVID-19 outbreak, as well as measures taken by various governmental authorities in response to the outbreak, led us to implement operational changes as we executed our business continuity plan.
−Removed: We took significant steps to protect our employees.
−Removed: A majority of BGC staff members are attending work in the office several days a week, while working remotely the other part of the week.
−Removed: Unvaccinated employees are required to wear masks in common spaces and when not able to maintain six feet of distance.
−Removed: We have deferred some corporate events and participation in industry conferences.
−Removed: We are also dependent on third-party vendors for the performance of certain critical processes and such vendors are also operating under business continuity plans.
+Added: BGC Technology conducts annual disaster recovery training exercises for each primary data center where failover procedures are tested against defined Recovery Time Objectives (RTOs).
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.