2 unchanged sentences
BGC has established policies and procedures to manage its exposure to credit risk.
−Removed: BGC maintains a thorough credit approval process to limit exposure to counterparty risk and employs stringent monitoring to control the counterparty risk from its matched principal and agency businesses.
+Added: BGC maintains a thorough credit approval process to limit exposure to counterparty risk and employs monitoring to control the counterparty risk from its matched principal and agency businesses.
BGC’s account opening and counterparty approval process includes verification of key customer identification, anti-money laundering verification checks and a credit review of financial and operating data.
3 unchanged sentences
In addition, BGC incurs limited credit risk related to certain brokerage activities.
−Removed: The counterparty risk relates to the collectability of the outstanding brokerage fee receivables.
+Added: This counterparty risk relates to the collectability of the outstanding brokerage fee receivables.
The review process includes monitoring both the clients and the related brokerage receivables.
8 unchanged sentences
The number of matched principal trades BGC executes has continued to grow as compared to prior years.
−Removed: 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.
+Added: Receivables from broker-dealers, clearing organizations, customers and affiliated 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.
BGC’s 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.
15 unchanged sentences
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.
−Removed: See Note 11—“Derivatives” and Note 12—“Fair Value of
−Removed: Financial Assets and Liabilities” 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.
−Removed: 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.
+Added: See Note 11—“Derivatives” and Note 12—“Fair Value of Financial Assets and Liabilities” 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: Our risk management procedures and limits are designed to monitor and limit the risk of unintended loss and have been effective in the past.
However, there is no assurance that these procedures and limits will be effective at limiting unanticipated losses in the future.
32 unchanged sentences
The Revolving Credit Agreement interest rate on borrowings is based on SOFR or a defined base rate plus additional margin.
+Added: As of December 31, 2024, BGC did not have any borrowings outstanding under its BGC Credit Agreement.
+Added: Borrowings under the BGC Credit Agreement bear interest at a rate equal to 25 basis points less than the applicable borrower’s borrowing rate under its revolving credit agreement with third party banks, or if FICC-GSD Margin Loans, at a rate equal to the overnight interest rate actually earned by the borrower or its affiliates on borrowings under the applicable FICC-GSD Margin Loan that are posted to clearinghouses or kept available for posting at clearinghouses.
To assess exposure to interest rate risk, we evaluated the effect of a 1% shift in interest rates, holding all other assumptions constant.
1 unchanged sentence
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.