GFI Group Inc.GFIG

Morningstar Rating

Stock Research and Analysis

by Michael Wong, CPA

GFI Group is one of the largest global interdealer brokers, or IDBs. The company has a team of brokers and technology professionals that mainly assist financial institutions in executing over-the-counter, derivative, and other financial instrument transactions. Read more

Bulls Say

New OTC products are continually being developed and may provide additional avenues for growth.

More electronic trading could increase volumes and broker productivity.

Interdealer brokers may prove to be attractive acquisition targets as Creditex was for the IntercontinentalExchange ICE.

Consolidation among interdealer brokers may lead to expense-saving synergies and improved margins. Read more

Bears Say

The insurgence of exchanges into the OTC market could decrease the OTC volumes that interdealer brokers execute.

Fears of counterparties defaulting on obligations could decrease OTC volumes in the short run.

Some of the company's top-performing brokers may be lured away by other firms.

More electronic trading could decrease transaction fees.

Although the company's counterparty exposure for derivative transactions is low because it mainly acts as an agent, the company may not be able to collect on its accounts receivables if its customer goes bankrupt. Read more

Strategy

The company plans to diversify its revenues across both geographies and products through strategic acquisitions and natural expansion. By leveraging its investments in technology, the company hopes to Read more

Management

Michael Gooch is the chairman and CEO of GFI Group. Gooch founded the company in 1987. Before founding the company, Gooch worked at several other brokerage houses. We give the company a C Stewardship Grade. We prefer that the positions of chairman and Read more

Profile

GFI Group is one of the five largest publicly traded interdealer brokers. The company has a leading position in OTC credit and energy instruments but also derives more than Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

How Dodge & Cox Looks at Financials
Watch more