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40 Facts About Cantor Fitzgerald

Ariana Wilhelm

Written by Ariana Wilhelm

Published: 14 Sep 2024

Expert Verified Editorial Guidelines
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Source: Bloomberg.com

Cantor Fitzgerald, a name synonymous with resilience and innovation in the financial world, has a storied history dating back to 1945. Founded by Bernard Gerald Cantor and John Fitzgerald, this American financial services firm has weathered numerous challenges, including the devastating loss of 658 employees during the 9/11 attacks. Under the leadership of Howard W. Lutnick, Cantor Fitzgerald not only rebuilt but thrived, expanding its global presence to over 60 offices in 20 countries. The firm is renowned for its pioneering electronic trading systems and its unwavering commitment to philanthropy, notably through the Cantor Fitzgerald Relief Fund. Here are 40 key facts that highlight the remarkable journey and impact of Cantor Fitzgerald.

Key Takeaways:

  • Cantor Fitzgerald, a financial services firm, overcame tragedy and grew globally. Its leaders, like Howard Lutnick, played a crucial role in its resilience and success.
  • Through philanthropy, strategic moves, and market adaptation, Cantor Fitzgerald has left a legacy of resilience and impact in the financial industry.
Table of Contents
01The Early Years
02Leadership and Innovation
03The Tragedy of 9/11 and Rebuilding
04Financial Services and Market Presence
05Strategic Moves and Acquisitions
06Philanthropy and Community Support
07Financial Performance and Talent Acquisition
08Leadership Recognition and Awards
09Subsidiaries and Affiliates
10Resilience and Market Adaptation
11Community Support and Philanthropic Efforts
12Leadership in Financial Markets
13Legacy and Impact
14Cantor Fitzgerald's Legacy of Resilience

40 Facts About Cantor Fitzgerald

Cantor Fitzgerald, LP, is a name that resonates deeply within the financial world. Founded in 1945, this American financial services firm has weathered many storms and emerged stronger each time. Let's dive into the fascinating journey of Cantor Fitzgerald through these 40 key facts.

The Early Years

Cantor Fitzgerald's story begins in the mid-20th century, a time of significant change and growth in the financial sector.

  1. Founding: Established in 1945 by Bernard Gerald Cantor and John Fitzgerald, the firm started as an investment bank and brokerage business.
  2. Early Success: The company quickly gained recognition for its computer-based bond brokerage and high-quality institutional distribution business model.
  3. Electronic Trading: In 1972, Cantor Fitzgerald revolutionized trading by becoming the world's first electronic marketplace for US government securities.
  4. Global Expansion: By the 1980s, the firm had expanded its operations globally, offering screen brokerage services in US government securities worldwide.

Leadership and Innovation

Leadership plays a crucial role in shaping any company's destiny. Cantor Fitzgerald's leaders have been pivotal in its growth and resilience.

  1. Leadership: Howard W. Lutnick joined Cantor Fitzgerald in 1983, quickly rising through the ranks to become President and CEO in 1991 and Chairman in 1996.
  2. eSpeed: In 1999, Lutnick took public Cantor's electronic trading subsidiary, eSpeed, which helped the firm stay afloat after the 9/11 attacks by enabling electronic trade processing.

The Tragedy of 9/11 and Rebuilding

The events of September 11, 2001, were a turning point for Cantor Fitzgerald. The firm lost 658 employees but showed remarkable resilience.

  1. Rebuilding After 9/11: Howard Lutnick dedicated himself to supporting the families of the Cantor Fitzgerald employees lost that day.
  2. The Cantor Fitzgerald Relief Fund: Launched by Lutnick, the Relief Fund committed $180 million to the 9/11 families over five years and provided healthcare coverage for ten years.
  3. Survival and Rebuilding: Despite the massive loss, Cantor Fitzgerald managed to survive and rebuild, thanks to its eSpeed platform.
  4. Global Presence: Today, Cantor Fitzgerald operates in more than 60 offices across 20 countries, employing over 12,500 people globally.

Financial Services and Market Presence

Cantor Fitzgerald has carved out a significant niche in the financial services industry, offering a wide range of services.

  1. Primary Dealer: The firm is one of 24 primary dealers authorized to trade US government securities with the Federal Reserve Bank of New York.
  2. Financial Services: Specializing in institutional equity, fixed-income sales and trading, Cantor Fitzgerald also serves the middle market with investment banking services, prime brokerage, and commercial real estate financing.
  3. New Businesses: The firm is also active in advisory and asset management services, gaming technology, and e-commerce.

Strategic Moves and Acquisitions

Cantor Fitzgerald's strategic decisions have played a significant role in its growth and diversification.

  1. BGC Partners: In 2004, Cantor Fitzgerald separated out its voice brokerage business to create BGC Partners L.P. In 2008, BGC merged with eSpeed to form BGC Partners, Inc.
  2. Newmark Acquisition: In 2011, BGC completed its acquisition of Newmark, investing heavily in the growth of the commercial real estate services business. Newmark completed its IPO in 2017 and spun off from BGC in 2018.

Philanthropy and Community Support

Cantor Fitzgerald's commitment to philanthropy is evident through its various charitable initiatives.

  1. Philanthropy: 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.
  2. Charity Day: Since its inception, Charity Day has raised $192 million for charities globally.
  3. Hurricane Sandy Relief: The Cantor Fitzgerald Relief Fund provided $10 million to families affected by Hurricane Sandy, distributing $1,000 prepaid debit cards to each family from 19 impacted elementary schools.
  4. Moore Tornado Relief: After the 2013 Moore tornado in Oklahoma, Howard Lutnick pledged $2 million to affected families, given in the form of $1,000 debit cards.

Financial Performance and Talent Acquisition

Cantor Fitzgerald's financial performance and talent acquisition strategies have been key to its success.

  1. Financial Performance: Despite post-9/11 challenges, Cantor Fitzgerald has been nearly twice as profitable as before the attacks, doubling its employee count to nearly 4,000 globally.
  2. Acquisitions and Hires: In the past eight months alone, Cantor Fitzgerald & Co. has hired at least 125 people and plans to add more than 100 more.
  3. Talent Acquisition: The firm is known for hiring talented and experienced people, giving them the entrepreneurial freedom to run their businesses.

Leadership Recognition and Awards

Howard Lutnick's leadership has been widely recognized and celebrated.

  1. Leadership Recognition: Lutnick has been named The Financial Times’ Person of the Year in 2001 and Ernst & Young’s United States Entrepreneur of the Year in 2010.
  2. Education: Lutnick is a graduate of Haverford College with a degree in economics.
  3. Board Memberships: He serves on the boards of the National September 11 Memorial & Museum, the Partnership for New York City, Weill Cornell Medicine, and the Horace Mann School.
  4. Awards and Honors: Lutnick received the Department of the Navy’s Distinguished Public Service Award, the highest honor for non-military personnel.

Subsidiaries and Affiliates

Cantor Fitzgerald's subsidiaries and affiliates contribute to its diverse business portfolio.

  1. Subsidiaries and Affiliates: These include BGC Partners, Cantor Ventures, Hollywood Stock Exchange, and TopLine Game Labs.
  2. Cantor Ventures: The corporate venture capital arm has invested in companies like delivery.com, Ritani, TopLine Game Labs, AdFin, Lucera, NewsWhip, and XIX Entertainment.
  3. Hollywood Stock Exchange: Founded in 1996, this is the world's virtual entertainment stock market.
  4. TopLine Game Labs: A technology company creating short-duration fantasy sports and entertainment-based social gaming.

Resilience and Market Adaptation

Cantor Fitzgerald's resilience and ability to adapt to market changes have been crucial to its success.

  1. Resilience and Determination: Howard Lutnick's "surfer's theory" – keeping going forward and not looking back – has been instrumental in the firm's recovery and growth.
  2. Electronic Trading Systems: Early adoption of electronic trading systems helped Cantor Fitzgerald stay competitive and profitable.
  3. Rebuilding Strategy: The firm's ability to reconfigure its trading systems to process trades through London instead of New York was crucial during the 9/11 crisis.

Community Support and Philanthropic Efforts

Cantor Fitzgerald's commitment to community support and philanthropy extends beyond its financial achievements.

  1. Community Support: The Cantor Fitzgerald Relief Fund continues to support victims of terrorism, natural disasters, and other emergencies.
  2. Philanthropic Efforts: The firm's annual Charity Day has raised substantial funds for various charitable causes.

Leadership in Financial Markets

Cantor Fitzgerald remains a major player in the financial markets, maintaining its position through strategic acquisitions and innovative business practices.

  1. Leadership in Financial Markets: One of the few remaining private partnerships on Wall Street, Cantor Fitzgerald has maintained its position as a major player.
  2. Market Adaptation: The firm successfully adapted to market changes, including the 2008 financial crisis, by ridding itself of risky securities.
  3. Regulatory Compliance: Cantor Fitzgerald has maintained its status as a primary dealer for the US Federal Reserve, adhering to strict regulatory standards.
  4. Global Capabilities: The firm offers a full suite of global capabilities, including investment banking, capital markets, prime services, research, and asset management.

Legacy and Impact

Cantor Fitzgerald's legacy extends beyond its financial achievements, serving as a testament to resilience and determination.

  1. Legacy and Impact: The firm's story inspires others through its philanthropic efforts and leadership in the financial industry.

Cantor Fitzgerald's Legacy of Resilience

Cantor Fitzgerald's journey from its founding in 1945 to its current status as a global financial powerhouse is a testament to resilience and innovation. The firm has weathered significant challenges, including the tragic loss of 658 employees on September 11, 2001. Under Howard Lutnick's leadership, Cantor Fitzgerald not only rebuilt but also thrived, expanding its operations and diversifying its services. The company's commitment to philanthropy, highlighted by the Cantor Fitzgerald Relief Fund and annual Charity Day, underscores its dedication to giving back. With a presence in over 60 offices across 20 countries, Cantor Fitzgerald continues to be a major player in the financial markets. Its legacy extends beyond financial success, serving as an inspiring example of determination and community support.

Frequently Asked Questions

What exactly is Cantor Fitzgerald?
Cantor Fitzgerald stands out as a global financial services firm. Renowned for its expertise in bond trading, investment banking, and asset management, this company has carved out a significant niche in the financial world. With roots stretching back to 1945, it's not just any firm; it's one that has weathered many storms, including the tragic events of September 11, 2001, which profoundly impacted its New York City headquarters.
How did Cantor Fitzgerald get its name?
Named after its founders, B. Gerald Cantor and John Fitzgerald, the firm embodies the entrepreneurial spirit and vision of its creators. From its inception, Cantor Fitzgerald was destined to make waves in the financial sector, combining Cantor's knack for business with Fitzgerald's financial acumen.
Why is Cantor Fitzgerald famous?
Apart from its financial prowess, Cantor Fitzgerald is widely recognized for its resilience and commitment to its community, especially following the September 11 attacks. Nearly two-thirds of its New York staff were lost that day, yet the firm made a remarkable recovery, demonstrating incredible strength and unity. Moreover, its annual Charity Day, where 100% of global revenues are donated to various causes, showcases its dedication to giving back.
What services does Cantor Fitzgerald offer?
Cantor Fitzgerald is a powerhouse, offering a wide array of services including equity and fixed income sales and trading, investment banking, prime brokerage, commercial real estate financing, and asset management services. This diversity allows it to meet the varied needs of its clients worldwide.
How did Cantor Fitzgerald handle the aftermath of 9/11?
In the wake of 9/11, Cantor Fitzgerald faced unimaginable loss but stood strong. Under the leadership of CEO Howard Lutnick, who also lost his brother in the attacks, the firm committed to rebuilding. It provided support to the families of employees who were lost, including a share of 25% of the firm's profits for five years and health insurance. This act of solidarity and compassion became a defining moment for Cantor Fitzgerald, highlighting its commitment to its people.
Can anyone invest with Cantor Fitzgerald?
Cantor Fitzgerald caters to a broad clientele, including institutional investors, private clients, and corporations. While it's known for serving high-net-worth individuals and large organizations, those interested in investing should reach out directly to explore their options, as services and opportunities can vary based on individual circumstances and investment goals.
Where does Cantor Fitzgerald operate?
With a global footprint, Cantor Fitzgerald operates in over 30 locations worldwide. Its headquarters are in New York City, but its network spans across the Americas, Europe, Asia-Pacific, and the Middle East, ensuring a global reach in its operations and services.
How can I learn more about working at Cantor Fitzgerald?
For those intrigued by a career at Cantor Fitzgerald, their official website is the best starting point. It offers insights into the firm's culture, open positions, and the application process. Additionally, reaching out through professional networking sites or attending career fairs where Cantor Fitzgerald is present can provide valuable connections and information.

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