GFI’s Trayport to Distribute NYMEX Products

European traders will have access to NYMEX products offered on CME Globex® and NYMEX ClearPort®, including the upcoming slate of products cleared by LCH.Clearnet.

NEW YORK, June 11, 2008 — GFI Group Inc. (Nasdaq: GFIG) and NYMEX Holdings, Inc. (NYSE: NMX), today announced that NYMEX’s products will be distributed on Trayport’s Trading Gateway System, an electronic trading platform with broad European distribution. Trayport is a wholly-owned subsidiary of GFI Group.

The Trayport facility, available in July 2008, can offer the complete slate of NYMEX listed products traded on CME Globex® as well as OTC-based products listed on NYMEX’s ClearPort® clearing system. The products include the upcoming NYMEX products cleared at LCH.Clearnet consisting of, among others, Brent Crude Oil, European Gasoil, Henry Hub OTC Swaps, and PJM Electricity. Also, European traders will have access to NYMEX’s U.S. benchmark products including physically settled WTI Crude Oil, RBOB Gasoline, N.Y. Harbor Heating Oil, and Henry Hub Natural Gas.

Michael Gooch, GFI Group’s chairman and chief executive officer said: “One of GFI’s interests when it acquired Trayport was its capacity to offer trading in new asset classes and regions. This development is a major step forward for the European and US commodity markets and we are delighted to be partnering with NYMEX in this. The benefits are mutual, providing the 9,000-plus European energy and commodity market participants who use Trayport technology with access to NYMEX’s European and U.S. oil markets, while providing NYMEX with a natural extension of its distribution in Europe.”

NYMEX Chairman Richard Schaeffer said: “We are delighted that NYMEX products will be distributed on Trayport screens. The broad European reach of Trayport combined with NYMEX’s global benchmark product slate, including the upcoming NYMEX products cleared by LCH.Clearnet, will be the first time European users will be able to trade OTC contracts and globally listed futures on the same screen. It’s a significant development and will be extremely valuable to market participants.”

About GFI Group Inc.
GFI Group Inc. (www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments. Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Dubai, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI provides services and products to over 2,200 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI(TM), GFInet(R), CreditMatch(R), GFI ForexMatch(TM), EnergyMatch(R), FENICS(R), Starsupply(R), Amerex(R), and Trayport(R). Trayport is a leading provider of real-time electronic trading software for brokers, exchanges and traders.

About NYMEX Holdings, Inc.
NYMEX Holdings, Inc. (NYSE:NMX) is the parent company of the New York Mercantile Exchange, Inc. (NYMEX), the world’s largest physical commodity futures and options exchange. NYMEX offers futures and options trading in energy, metals and soft commodities contracts and clearing services for more than 400 off-exchange energy and metals contracts. Through a hybrid model of open outcry floor trading and electronic trading on the CME Globex® and NYMEX ClearPort® platforms, NYMEX offers crude oil, petroleum products, natural gas, coal, electricity, gold, silver, copper, aluminum, platinum group metals, and soft commodities contracts for trading and clearing virtually 24 hours a day. More information is available at http://www.nymex.com. More information regarding NYMEX products cleared on LCH.Clearnet is available at http://www.nymexonlchclearnet.com.

About Trayport Limited
Trayport is a supplier of multi-asset class electronic trading and order matching software for brokers, exchanges and traders. Trayport develops, deploys and supports quality, resilient software for trading in any asset class worldwide in cleared or OTC markets. Trayport’s GlobalVision software is used by the world’s largest trading companies in high profile markets that include derivative and cash instruments. Founded in 1993, Trayport has offices in London, New York and Hong Kong. Trayport is a subsidiary of GFI Group Inc. (‘GFIG’ on Nasdaq). More information is available at www.trayport.com

Forward-looking statements
Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Management of each of GFI and NYMEX {“the companies”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: acquisitions by us of businesses or technologies; economic, political and market factors affecting trading volumes, securities prices or demand for brokerage services; competition from current and new competitors; the ability to attract and retain key personnel, including highly-qualified brokerage personnel; the ability to identify and develop new products and markets; changes in laws and regulations governing the each of the companies’ business and operations or permissible activities; the ability to manage its international operations; financial difficulties experienced by customers or key participants in the markets which the companies serve; the ability to keep up with technological changes; and uncertainties relating to litigation.

Further information about factors that could affect each of GFI Group Inc.’s or NYMEX’s financial and other results are included in their filings with the Securities and Exchange Commission. GFI and NYMEX do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts:
GFI Group
Investor Relations
Christopher Giancarlo
Executive Vice President – Corporate Development
Email: investorinfo@gfigroup.com

Chris Ann Casaburri
Investor Relations Manager
Phone: +1-212-968-4167
Email: chris.casaburri@gfigroup.com
 

Media Contact
Alan Bright, Public Relations Manager
Phone: +44-20-7877-8049
Email: alan.bright@gfigroup.co.uk

Nymex Holdings
Media Contact: Anu Ahluwalia, +1 212 299 2439
Investor Contact: Keil Decker, +1 212 299 2209

Trayport:
Chanda Gathani
Metia
+ 44 203 100 3605
chanda.gathani@metia.com

Quaesta Capital live with FENICS FX

Leading pricing and risk management system for new volatility fund

London – June 2nd 2008 – Quaesta Capital, a Swiss financial services provider, has gone live with FENICS FX – pricing and risk management software from GFI (Nasdaq: GFIG).

Quaesta Capital is using FENICS for managing vanilla and exotic FX option positions in its new v-Pro, a long/short FX volatility program.

Harald Hild, v-Pro’s principal portfolio manager said “With volatility strategies you need active and dynamic trade management. For us at Quaesta Capital, risk and position management is critical to generate attractive and sustainable absolute returns for our investors – and FENICS FX is great for exactly this.”

“The FX market continues to develop,” said Richard Brunt, GFI’s global head of FENICS sales, “and currency fund managers who are developing innovative investment products – as Quaesta Capital is doing with v-Pro – are another new area where FENICS can be deployed”.

Quaesta’s licence covers FENICS’s Pricing, Security, Live rates and Analysis modules. V-Pro was launched at the end of May.

The deal was signed in December last year and FENICS went live at Quaesta in April.

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data and trading platform and analytics software to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Dubai, Hong Kong, Shanghai, Tokyo, Singapore, Sydney, Seoul, Cape Town, Calgary, Englewood (NJ), and Sugar Land (TX). GFI provides services and products to over 2,200 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI™, GFInet®, CreditMatch®, GFI ForexMatch™, EnergyMatch®, FENICS®, Starsupply®, Amerex® and Trayport®.

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:
Alan Bright
PR Manager
GFI Group Inc.
+ 44 (0)20 7877 8049
alan.bright@gfigroup.co.uk

Bawag licenses GFI’s FENICS FX

First Czech client for leading fx pricing and risk management system

London – May 6th 2008 – BAWAG Bank, a Czech bank, has taken a three-year licence for FENICS FX – pricing and risk management software from GFI (Nasdaq: GFIG). The bank will use FENICS to price fx options.

Jiri Mach, head of treasury sales at BAWAG said, “To be able to meet our clients’ increasing demand for FX option hedging, we at BAWAG need to price not just vanilla fx options but also exotic, multi-leg, multi-currency strategies. FENICS FX easily handles all of these and provides us with the tools required for fast and accurate price discovery, allowing us to quote competitive and indicative prices quickly to our clients and take advantage of market opportunities.”

“GFI is delighted to have signed its first FENICS client in the Czech Republic”, said Richard Brunt, GFI’s global head of FENICS sales. “As Eastern Europe demands more in terms of structured financing, the region’s banks need sophisticated pricing and risk management capabilities, such as FENICS FX’s”.

BAWAG’s licence covers FENICS’s Pricing, Security, Live rates, Exotic Maths and Structuring modules.

The deal was signed on April 7th and FENICS FX is now live at BAWAG.

BAWAG is part of BAWAG PSK, an Austrian financial group.

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data and trading platform and analytics software to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Dubai, Hong Kong, Shanghai, Tokyo, Singapore, Sydney, Seoul, Cape Town, Calgary, Englewood (NJ), and Sugar Land (TX). GFI provides services and products to over 2,200 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI™, GFInet®, CreditMatch®, GFI ForexMatch™, EnergyMatch®, FENICS®, Starsupply®, Amerex® and Trayport®.

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Alan Bright
PR Manager
GFI Group Inc.
+ 44 (0)20 7877 8049
alan.bright@gfigroup.co.uk

GFI Group Inc. Announces Record First Quarter 2008 Results; Declares Quarterly Cash Dividend

– GAAP Revenues: Up 31% to $314.6 Million

New York, April 28, 2008GFI Group Inc. (Nasdaq: GFIG), an inter-dealer brokerage, market data, trading platform and analytical software provider for global cash and derivative markets, today announced financial results for the first quarter ended March 31, 2008.

Highlights

  • Total revenues for the first quarter of 2008 increased 31% to a record of $314.6 million. In the first quarter of 2007, total revenues were $240.3 million.
  • Brokerage revenues for the first quarter of 2008 rose 28% over the first quarter of 2007, with strong growth in all product categories ? credit, financial, equity and commodity, which increased 31%, 16%, 40% and 22%, respectively. Brokerage revenues year over year for the first quarter increased in all geographic regions, with growth particularly strong in Europe and Asia-Pacific, which rose 39% and 60%, respectively, with an increase in North America of 11%.
  • There were 1,048 brokerage personnel at the end of the first quarter of 2008, representing a net increase of 58 brokerage personnel from the first quarter of 2007.
  • Compensation and employee benefits expense was 61.4% of total revenues in the first quarter of 2008 compared with 63.0% in the first quarter of 2007.
  • Non-compensation expense as a percentage of revenues was 20.3% for the first quarter of 2008 compared with 19.8% in first quarter of 2007. On a non-GAAP basis, non-compensation expense as a percentage of revenues was 19.2% in the first quarter of 2008 compared with 19.4% in the first quarter of 2007.
  • Net income for the first quarter of 2008 increased 46% to $36.0 million, or $0.30 per diluted share, compared with $24.7 million, or $0.21 per diluted share, in the first quarter of 2007. On a non-GAAP basis, net income for the first quarter of 2008 rose 51% to $38.1 million, or $0.32 per diluted share, compared with $25.3 million, or $0.21 per diluted share, for the first quarter of 2007. Per share amounts have been adjusted to reflect the Company’s 4-for-1 stock split effective March 31, 2008.

Michael Gooch, Chairman and Chief Executive Officer of GFI, commented: “The first quarter was a record for GFI. GFI performed well in all product areas. Equity markets remained active in the first quarter of 2008, leading to a 40% year-over-year increase in our revenues from equity products following their record growth in the fourth quarter. This was accompanied by a 31% increase in credit product revenues over the first quarter of 2007, which reached a record $111 million, and demonstrated a 52% increase sequentially. Our European desks made a major contribution to the increases in both product categories, supported by growth from other regions.

“Commodity product revenues increased 22% over the first quarter of 2007. We saw continued strong growth in dry freight derivatives in Europe and Asia-Pacific and metals in Europe. This was accompanied by increases in electric power and natural gas products in North America.

“Financial product revenues rose 16% from the first quarter of 2007, with the Asia-Pacific region leading the growth due to increases in emerging market currency and interest rate derivatives. Recently we have expanded our presence in the Middle East with the addition of our new offices in Dubai and Tel Aviv.

“Our electronic trading initiatives continue to be a focus of management, as we continue to add functionality and scale to our ForexMatch™, CreditMatch® and EnergyMatch® platforms. Our trading platforms continue to gain traction with increased electronic trading activity year over year. We remain committed to fostering customer relationships through our hybrid strategy of ‘melding man and machine,’ as well as introducing electronic trading, STP and analytics wherever possible with a goal of increasing market share and broker productivity.

“Looking forward, we expect our growth to continue in the second quarter of 2008, with brokerage revenues expected to increase between 18% and 23% compared with the second quarter of 2007. Our forecast takes into account the competitive forces we are confronting for our brokerage personnel amidst the departure of a number of credit product brokers from our New York office.”

Mr. Gooch concluded: “Ultimately, we believe that our economic and strategic model is the only viable course for success in our markets over the longer term. We will continue to execute our plan to provide our brokerage personnel with sophisticated technology to further their success and that of our customers. We also will remain fully focused on building shareholder value and are pleased to declare a cash dividend of 3 cents a share for the quarter.”

Revenues

For the first quarter of 2008, total revenues increased 31% to $314.6 million compared with $240.3 million in the first quarter of 2007.
Brokerage revenues rose 28% to $298.2 million in the first quarter of 2007 and included a 31% increase in credit products, a 16% increase in financial products, a 40% increase in equity products and a 22% increase in commodity products compared, in each case, with the first quarter of 2007.
Revenues from analytics, trading platform and data products for the first quarter of 2008 more than doubled to $11.3 million from $5.3 million in the same period of 2007 and included two months of revenues from Trayport, acquired by GFI on January 31, 2008, totaling $5.5 million.
By geographic region, first quarter 2008 brokerage revenue growth increased 11% in North America, 39% in Europe and 60% in Asia-Pacific over the first quarter of 2007.

Expenses

For the first quarter of 2008, compensation and employee benefit expense was $193.2 million, or 61.4% of total revenues, compared with $151.5 million, or 63.0% of total revenues in the first quarter of 2007 and $151.0 million, or 61.1% of total revenues, in the fourth quarter of 2007.
Non-compensation expense for the first quarter of 2008 was $63.8 million or 20.3% of total revenues. This compares with $47.7 million, or 19.8% of total revenues, in the first quarter of 2007 and $61.0 million or 24.7% of total revenues in the fourth quarter of 2007. On a non-GAAP basis, non-compensation expense for the first quarter of 2008 was 19.2% of total revenues compared with 19.4% in the first quarter of 2007 and 23.5% in the fourth quarter of 2007.

Earnings

On a GAAP basis, net income for the first quarter of 2008 increased 46% to $36.0 million, or $0.30 per diluted share, compared with $24.7 million or $0.21 per diluted share in the first quarter of 2007. On a non-GAAP basis, net income for the first quarter of 2008 rose 51% to $38.1 million, or $0.32 per diluted share, compared with $25.3 million or $0.21 for the first quarter of 2007. Per share amounts have been adjusted to reflect the Company’s 4-for-1 stock split effective March 31, 2008.

Non-GAAP Financial Measures

To supplement GFI’s unaudited financial statements presented in accordance with GAAP, the Company uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by GFI include non-GAAP revenues, non-GAAP net income and non-GAAP diluted earnings per share. These non-GAAP financial measures currently exclude amortization of acquired intangibles and certain other items that management views as non-operating or non-recurring from the Company’s statement of income as detailed below.

In addition, GFI may consider whether other significant non-operating or non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses. The non-GAAP financial measures also take into account income tax adjustments with respect to the excluded items.

GFI believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of the Company’s core business, operating results or future outlook. GFI’s management uses, and believes that investors benefit from referring to these non-GAAP financial measures in assessing the Company’s operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company’s performance to prior periods.

In addition to the reasons stated above, which are generally applicable to each of the items GFI excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude amortization of acquired intangibles because when analyzing the operating performance of an acquired business, GFI’s management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity as compared to the purchase price paid) without taking into consideration any charges for allocations made for accounting purposes. Further, because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets, when analyzing the operating performance of an acquisition in subsequent periods, the Company’s management excludes the GAAP impact of acquired intangible assets on its financial results. GFI’s presentation of non-GAAP financial measures does include interest charges related to financing of acquisitions when analyzing the operating performance of an acquisition in subsequent periods. GFI believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.

Set forth below is specific detail regarding items excluded in our non-GAAP financial measures. A reconciliation of the non-GAAP to GAAP figures follows this press release.

In the first quarter of 2008, there was no difference between GAAP and non-GAAP revenues. The difference between GAAP and non-GAAP net income was $2.1 million and reflected for non-GAAP purposes:

  • The exclusion of $1.2 million of amortization on all acquired intangible assets.
  • The exclusion of items related to the planned relocation of the Company’s New York offices to larger premises scheduled for the second and third quarter of 2008, including:
    • $0.8 million of duplicate rent expense;
    • $1.4 million of accelerated depreciation expense related to assets to be abandoned.
  • The effect of adjusting for these items would increase the Company’s income tax expense by $1.3 million.

In the first quarter of 2007, there was no difference between GAAP and non-GAAP revenues. The difference between GAAP and non-GAAP net income was $0.6 million and reflected for non-GAAP purposes:

  • The exclusion of $1.0 million of amortization on all acquired intangible assets.
  • The effect of adjusting for this item would increase the Company’s income tax expense by $0.4 million.

Dividend Declaration

The Board of Directors of GFI Group has declared a quarterly cash dividend of $0.03 per share payable on May 15, 2008 to shareholders of record on May 1, 2008.

Conference Call

GFI has scheduled an investor conference call at 8:30 a.m. (Eastern Time) on Tuesday, April 29, 2008 to review its first quarter 2008 financial results and business outlook. Those wishing to listen to the live conference call via telephone should dial 866.356.4281 in North America, passcode 14180147 and +1 617.597.5395 in Europe, same passcode. A live audio web cast of the conference call will be available on the Investor Relations section of GFI’s Web site. For web cast registration information, please visit the Investor Relations page at http://www.gfigroup.com. Following the conference call, an archived recording will be available at the same site.

Supplementary Financial Information

GFI Group has posted details of its historical monthly brokerage revenues on the Investor Relations page of its web site under the heading Supplementary Financial Information. The Company currently plans to post this information quarterly in conjunction with its announcement of earnings, but does not undertake a responsibility to continue to provide or update such information.

About GFI Group Inc.

GFI Group Inc. (http://www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Dubai, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI provides services and products to over 2,200 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI™, GFInet®, CreditMatch®, GFI ForexMatch™, EnergyMatch®, FENICS®, Starsupply®, Amerex®, and Trayport®.

Forward-looking statements

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: acquisitions by us of businesses or technologies; economic, political and market factors affecting trading volumes, securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

GFI First Quarter 2008 Financial Tables (PDF)

Investor Relations Contact:
GFI Group Inc.
Christopher Giancarlo
Executive Vice President – Corporate Development
investorinfo@gfigroup.com

 

Chris Ann Casaburri
Investor Relations Manager
212-968-4167
chris.casaburri@gfigroup.com

Comm-Partners LLC
June Filingeri
203-972-0186
junefil@optonline.net

Media Contact:
GFI Group Inc.
Alan Bright
Public Relations Manager
011-44-20-7877-8049
alan.bright@gfigroup.co.uk

GFI launches Australian iTraxx fixings

Daily fixings for improved risk management

London – April 18 2008 – GFI Group, Inc. (‘GFIG’ on Nasdaq) is providing a new daily fixing for the Markit iTraxx Australia index. The first fixing took place on Monday 14th April.

“This new fixing is based on actual trades and tradable prices”, says Scott Tatham, GFI’s head of brokerage for Asia-Pacific, “It therefore provides the most accurate mid-market level to clear risk on any given day. The fixing has been well received and we intend to make this a daily event”.

The fixings take place during a one-minute period from 5pm (Sydney time). For the first fixing, 16 dealers from 8 banks participated and the final fixing of 147 incorporated 8 quotes and 3 transactions.

The fixing takes place on CreditMatch®, GFI’s electronic trading platform for credit derivatives and bonds.

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Dubai, Hong Kong, Shanghai, Tokyo, Singapore, Sydney, Seoul, Cape Town, Calgary, Englewood (NJ), and Sugar Land (TX). GFI provides services and products to over 2,200 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI™, GFInet®, CreditMatch®, GFI ForexMatch™, EnergyMatch®, FENICS®, Starsupply®, Amerex® and Trayport®.

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact
Alan Bright
PR Manager
GFI Group Inc.
+ 44 (0)20 7877 8049
alan.bright@gfigroup.co.uk

GFI opens Dubai office

Middle East expansion for leading inter-dealer broker

London – March 27 2008 – GFI Group, Inc. (Nasdaq: GFIG) has opened an office in Dubai – its first presence in the Gulf.

The new office is managed by Chris Steer and he is joined by Callum McCall and David Barnett. All three have transferred from GFI’s office in London. GFI is also retaining the services of Jonathan Peevers, who has 20 years’ experience in Gulf financial markets.

“We believe there are great opportunities in the Middle East and GFI will be transacting Murabaha business and broking Middle East debt and other Gulf-region financial instruments”, said Mr Steer. “We’ll be servicing clients both locally and internationally and, longer term, we expect to expand this office and the products offered”.

In 2006, GFI set up a London desk to develop a secondary market in Islamic bonds (Sukuk).

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Paris, Hong Kong, Shanghai, Tokyo, Singapore, Sydney, Seoul, Cape Town, Englewood (NJ), and Sugar Land (TX). GFI provides services and products to over 2,000 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI™, GFInet®, CreditMatch®, GFI ForexMatch™, EnergyMatch®, FENICS®, Starsupply®, Amerex® and Trayport®.

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact
Alan Bright
PR Manager
GFI Group Inc.
+ 44 (0)20 7877 8049
alan.bright@gfigroup.co.uk

GFI invests in ship broker

Leading inter-dealer broker takes stake in ACM Shipping

London – November 29 2007 – GFI Group, Inc (Nasdaq: GFIG) has taken a 9.25% stake in ACM Shipping, a London-based ship broker.

Julian Swain, head of London brokerage at GFI said, “This builds on GFI’s successful joint venture with ACM Shipping in wet freight derivatives. GFI sees a strong future for freight, it complements well GFI’s existing energy, commodities and dry freight business and we are delighted to have had this opportunity to invest in a leading ship broker”.

The transaction closed on November 23rd. The cost was not disclosed.

The ACM/GFI joint venture was created in 2002.

About GFI Group Inc.www.GFIgroup.com
GFI Group Inc. (www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,500 people with additional offices in London, Paris, Hong Kong, Tokyo, Singapore, Sydney, Seoul, Cape Town, Englewood (NJ), and Sugar Land (TX). GFI provides services and products to over 2,000 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI™, Starsupply®, GFInet®, CreditMatch®, EnergyMatch®, FENICS® and Amerex®.

Forward-looking statement
Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Alan Bright
PR Manager
GFI Group Inc.
+ 44 (0)20 7877 8049
alan.bright@gfigroup.co.uk
 

Electronic trading for emissions

GFI launches EnergyMatch? in North America

New York – November 14, 2007 – GFI Group, Inc (Nasdaq: GFIG) has launched EnergyMatch?, an electronic trading platform for over-the-counter energy derivatives.

EnergyMatch will initially carry Sulfur Dioxide and Nitrogen Oxide emission contracts, brokered by Amerex Brokers LLC, a wholly-owned subsidiary of GFI. Other emission types and energy contracts will be added in due course.

“With the emissions market continuing to grow in importance, we believe EnergyMatch will play a key role in bringing together buyers and sellers in a very convenient and effective way”, said Ian Clague, GFI Group’s head of energy for the Americas. “The technology of EnergyMatch and experienced Amerex brokers is a powerful combination.”

EnergyMatch? is an extension of GFI’s highly successful electronic/broker-assisted hybrid broking business model. This is already well established in certain regions in the credit and foreign exchange derivatives markets with CreditMatch® and ForexMatch®.

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,500 people with additional offices in London, Paris, Hong Kong, Tokyo, Singapore, Sydney, Seoul, Cape Town, Englewood (NJ), and Sugar Land (TX). GFI provides services and products to over 2,000 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI™, Starsupply®, GFInet®, CreditMatch®, FENICS® and Amerex®.

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Armel Leslie
Walek & Associates
+ 1 212.590.0530
aleslie@walek.com
 

GFI Group Inc. Announces Record Third Quarter Results

GAAP Revenues: Up 42% to $254.7 Million on 41% Rise in Brokerage Revenues

NEW YORK, Nov. 1 /PRNewswire-FirstCall/ — GFI Group Inc. (Nasdaq: GFIG), an inter-dealer brokerage, market data and analytical software provider for global cash and derivative markets, today announced financial results for the third quarter and nine months ended September 30, 2007.

Highlights

Total revenues for the third quarter of 2007 increased 42% to a record of $254.7 million compared with $180.0 million in the third quarter of 2006.

Brokerage revenues for the third quarter of 2007 rose 41% over the third quarter of 2006, with strong growth in all product categories – credit, financial, equity and commodity, which increased 45%, 28%, 43% and 48%, respectively. All geographic regions demonstrated strong increases in brokerage revenues from the third quarter of 2006.

Brokerage revenues from credit derivative transactions, which are included in GFI’s credit products category, increased 53% for the third quarter of 2007 compared with the same period of 2006.

There were 1,021 brokerage personnel at the end of the third quarter of 2007, representing a net increase of 194 brokerage personnel from the third quarter of 2006 and a gain of 13 from the second quarter of 2007 and up 89 for the year.

For the third quarter of 2007, compensation and employee benefits expense, as a percentage of revenues, was 62.4%, which was in line with the level of 62.5% in the third quarter of 2006 and below the level of 62.9% in the second quarter of 2007.

Non-compensation expense as a percentage of revenues improved to 20.9% for the third quarter of 2007 compared with 22.3% in third quarter of 2006 and 23.2% in the second quarter of 2007. On a non-GAAP basis, non-compensation expense as a percentage of revenues declined to 19.8% in the third quarter of 2007 from 21.6% in the third quarter of 2006 and 21.9% in the second quarter of 2007.

Net income for the third quarter of 2007 increased 56% to a record $25.9 million, or $0.87 per diluted share, compared with $16.6 million, or $0.57 per diluted share in the third quarter of 2006. On a non-GAAP basis, net income for the third quarter of 2007 rose 53% to $27.6 million, or $0.92 per diluted share, compared with $18.0 million, or $0.62 per diluted share in the third quarter of 2006.
Michael Gooch, Chairman and Chief Executive Officer of GFI, commented: “Our record third quarter performance was driven in part by robust trading in our credit, equity and financial products as the subprime debt turmoil continued to create volatility in world financial markets. We also benefited from our investment in technology and brokerage personnel as well as from our continuing effort to improve operating leverage.

“Our strong revenue performance in credit and equity products was in part a function of the subprime market fallout. Revenues from credit products increased 45% year-over-year and equity product revenues rose 43%, both reaching record levels in the third quarter. The success of our CreditMatch(R) electronic trading platform in Europe further contributed to our growth in credit derivatives and investment grade bonds. The increase in our equity product revenues benefited from the progress and leadership of our Paris office.

“Our financial product revenues increased 28% over the prior year period, reflecting continued strength in emerging market products in all regions, especially Europe and Asia, while commodity product revenues increased 48% over the third quarter of 2006 benefiting from the contribution of our Amerex businesses and growth in several energy products in Europe.

“We made measurable progress in improving our operating leverage in the third quarter, which is an ongoing objective for GFI management. In addition to controlling employment and related compensation costs despite ongoing competition for brokerage personnel, we made headway in reducing non- compensation costs as a percentage of revenues. As a result, our growth in net income exceeded our revenue growth for the quarter.

“We have entered the fourth quarter with market trends remaining favorable. The third quarter volatility subsided towards the end of the quarter but returned in October. October revenues are approximately 35% ahead of the same month last year. As a result, we expect our fourth quarter brokerage revenues to increase in the region of 20% to 25% over the fourth quarter of 2006.

Mr. Gooch concluded: “Based on the substantial growth and progress of GFI to date and our anticipation of future growth opportunities, our Board of Directors has authorized management to seek stockholder approval to increase the Company’s authorized share capital for general corporate use, including authorization for up to a four-for-one stock split in the form of a stock dividend.”

The Company noted that the GFI Board has authorized the calling of a Special Meeting of Stockholders specifically to approve an increase in the number of authorized shares of common stock to 400 million from the current level of 100 million.

The Company further noted that the details of the Special Meeting of Stockholders as well as the record and payment dates for the proposed stock dividend, when and if declared by the Board, will be announced at a later time.

Revenues

For the third quarter of 2007, total revenues increased 42% to $254.7 million compared with $180.0 million in the third quarter of 2006. Non-GAAP revenues for the third quarter of 2006 were $181.0 million, excluding the effect of foreign exchange collars described below.

Brokerage revenues rose 41% to $244.9 million in the third quarter of 2007 and included a 45% increase in credit products, a 28% increase in financial products, a 43% increase in equity products and a 48% increase in commodity products compared, in each case, with the third quarter of 2006. Third quarter 2007 commodity product revenues included the contribution of the North American brokerage operations of Amerex Energy, which GFI acquired on October 1, 2006.

Revenues from analytics and data products in the third quarter of 2007 were $4.9 million compared with $5.0 million in the same period of 2006.

By geographic region, third quarter 2007 brokerage revenue growth increased 36% in North America, 48% in Europe and 34% in Asia Pacific over the third quarter of 2006.

Expenses

For the third quarter of 2007, compensation and employee benefits expense was $158.8 million or 62.4% of total revenues compared with $112.5 million or 62.5% of total revenues in the third quarter of 2006 and $143.5 million or 62.9% of total revenues in the second quarter of 2007. On a non-GAAP basis, compensation and employee benefits expense represented 62.4% of total revenues for the third quarter of 2007 versus 62.2% in the third quarter of 2006 and 62.5% in the second quarter of 2007.

Non-compensation expense for the third quarter of 2007 was $53.2 million or 20.9% of total revenues compared with $40.2 million or 22.3% of total revenues in the third quarter of 2006 and $53.0 million or 23.2% of total revenues in the second quarter of 2007. On a non-GAAP basis, non-compensation expense for the third quarter of 2007 was 19.8% of total revenues compared with 21.6% in the third quarter of 2006 and 21.9% in the second quarter of 2007.

Earnings

On a GAAP basis, net income for the third quarter of 2007 increased 56% to $25.9 million, or $0.87 per diluted share, compared with $16.6 million or $0.57 per diluted share in the third quarter of 2006. On a non-GAAP basis, net income for the third quarter of 2007 rose 53% to $27.6 million, or $0.92 per diluted share, compared with $18.0 million or $0.62 in the third quarter of 2006. The non-GAAP amounts exclude non-operating or non-recurring items as summarized under “Non-GAAP Financial Measures.”

Nine-Month Results

On a GAAP basis, for the nine months ended September 30, 2007, GFI’s revenues were $723.2 million and net income was $69.7 million or $2.34 per diluted share compared with revenues of $553.1 million and net income of $47.7 million or $1.64 per diluted share for the first nine months of 2006. Excluding non-operating or non-recurring items, non-GAAP revenues for the first nine months of 2007 were also $723.2 million while net income was $74.3 million or $2.50 per diluted share. For the first nine months of 2006, non- GAAP revenues were $556.5 million and net income was $54.6 million or $1.87 per diluted share.

Non-GAAP Financial Measures

To supplement GFI’s unaudited financial statements presented in accordance with GAAP, the Company uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by GFI include non-GAAP revenues, non-GAAP net income and non-GAAP diluted earnings per share. These non-GAAP financial measures currently exclude amortization of acquired intangibles and certain other items that management views as non-operating or non-recurring from the Company’s statement of income as detailed below.

In addition, GFI may consider whether other significant non-operating or non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses. The non-GAAP financial measures also take into account income tax adjustments with respect to the excluded items.

GFI believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of the Company’s core business, operating results or future outlook. GFI’s management uses, and believes that investors benefit from referring to these non-GAAP financial measures in assessing the Company’s operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company’s performance to prior periods.

In addition to the reasons stated above, which are generally applicable to each of the items GFI excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude amortization of acquired intangibles because when analyzing the operating performance of an acquired business, GFI’s management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity as compared to the purchase price paid) without taking into consideration any charges for allocations made for accounting purposes. Further, because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets, when analyzing the operating performance of an acquisition in subsequent periods, the Company’s management excludes the GAAP impact of acquired intangible assets on its financial results. GFI believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.

Set forth below is specific detail regarding items excluded in our non- GAAP financial measures. A reconciliation of the non-GAAP to GAAP figures follows this press release.

In the third quarter of 2007, there was no difference between GAAP and non-GAAP revenues. The difference between GAAP and non-GAAP net income was $1.7 million and reflected for non-GAAP purposes:

The exclusion of $0.8 million of amortization on all acquired intangible assets.
The exclusion of items related to the planned relocation of the Company’s New York offices to larger premises scheduled for the first half of 2008, including:
$0.8 million of duplicate rent expense;
$1.1 million of accelerated depreciation expense related to assets to be abandoned.
The effect of adjusting for these items would increase the Company’s income tax expense by $1.1 million.
For the first nine months of 2007, there was no difference between GAAP and non-GAAP revenues. The difference between GAAP and non-GAAP net income for the period reflected the above items as well as the exclusion for non-GAAP purposes of:

$1.8 million of amortization on all acquired intangible assets.
The exclusion of $0.8 million of payroll-related taxes in the UK on the exercise of stock options by a former Company executive in connection with his departure from the Company.
The exclusion of items related to the planned relocation of the Company’s New York offices, including:
$1.6 million accrual for lease termination costs;
$0.2 million of duplicate rent expense;
$0.4 million of accelerated depreciation expense related to assets to be abandoned.
The effect of adjusting for this item would increase the Company’s income tax expense by $1.9 million.
The difference between GAAP and non-GAAP amounts for the third quarter of 2006 reflected the exclusion for non-GAAP purposes of:

A $1.0 million loss reclassified from accumulated other comprehensive loss into other income due to foreign exchange collars. In the first quarter of 2005, GFI discontinued hedge accounting for a foreign exchange collar because the rates on the contract were renegotiated, resulting in a termination of the contract and the execution of a new contract. The new contract did not qualify for hedge accounting, resulting in all unrealized gains and losses on the contract being recorded directly to earnings. The new contract was settled on June 30, 2005 for a net realized gain of $1.1 million. Unrealized losses on the original contract remained in accumulated other comprehensive loss on the balance sheet and were reclassified into earnings over the term of the original contract. As of December 31, 2006, there was no remaining unrealized loss to be recognized.
The exclusion of $0.2 million of amortization on all acquired intangible assets.
The exclusion of $1.0 million of costs incurred by the Company relating to its first year of compliance with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 which management believes were in excess of those costs required for continued compliance.
The effect of adjusting for these items would increase the Company’s income tax expense by $0.8 million.
The difference between GAAP and non-GAAP amounts for the first nine months of 2006 reflected the above items as well as the exclusion for non-GAAP purposes of:

A $2.4 million loss reclassified from accumulated other comprehensive loss into other income due to the aforementioned foreign exchange collars.
The exclusion of $0.6 million of amortization on all acquired intangible assets.
A $0.8 million accrual for the remaining rent and related charges for the Company’s vacated London office.
The exclusion of $2.7 million for severance costs related to the closure of a desk in the U.S.
The exclusion of $1.7 million of costs incurred by the Company relating to its first year of compliance with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 which management believes were in excess of those costs required for continued compliance.
The exclusion of $0.6 million of professional fee expenses related to the Company’s secondary offering.
The effect of adjusting for these items would increase the Company’s income tax expense by $3.3 million.
Conference Call

GFI has scheduled an investor conference call at 8:30 a.m. (Eastern Time) on Friday, November 2, 2007 to review its third quarter 2007 financial results and business outlook. Those wishing to listen to the live conference via telephone should dial 800-591-6944 in North America and +1 617-614-4910 in Europe. The passcode for the call is 20526309. A live audio web cast of the conference call will be available on the Investor Relations section of GFI’s Web site. For web cast registration information, please visit the Investor Relations page at http://www.gfigroup.com. Following the conference call, an archived recording will be available at the same site.

Supplementary Financial Information

GFI Group has posted details of its historical monthly brokerage revenues on the Investor Relations page of its web site under the heading Supplementary Financial Information. The Company currently plans to post this information quarterly in conjunction with its announcement of earnings, but does not undertake a responsibility to continue to provide or update such information.

About GFI Group Inc.

GFI Group Inc. (http://www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,500 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Englewood (NJ), and Sugar Land (TX). GFI provides services and products to over 2,000 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI(TM), GFInet(R), CreditMatch(R), GFI ForexMatch(R), FENICS(R), Starsupply(R) and Amerex(R).

Forward-looking statements

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward- looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes, securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly- qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

GFI Third Quarter 2007 Financial Tables (PDF)

SOURCE GFI Group Inc.

CONTACT: Investor Relations, Christopher Giancarlo, Executive Vice
President – Corporate Development, +1-212-968-2992, or
investorinfo@gfigroup.com, or Chris Ann Casaburri, Investor Relations Manager,
+1-212-968-4167, or chris.casaburri@gfigroup.com, both of GFI Group Inc.; or
June Filingeri of Comm-Partners LLC, +1-203-972-0186, or
junefil@optonline.net; or Media, Alan Bright, Public Relations Manager of GFI
Group Inc., 011-44-20-7877-8049, or alan.bright@gfigroup.co.uk
Web site: http://www.gfigroup.com
(GFIG)
 

More banks licensed to trade Hong Kong property derivatives

Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch, Morgan Stanley added

London, September 12, 2007 – GFI Colliers, a joint venture between GFI Group Inc. (GFIG on Nasdaq) and Colliers International, today announced that Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley are now licensed to trade residential property derivatives based on The University of Hong Kong Real Estate Index Series (HKU-REIS). These banks join Sun Hung Kai Financial and ABN Amro, counterparties of the first Hong Kong property derivatives swap in February this year.

Connie Choi, Goldman Sachs’ Hong Kong based executive director, fixed income, currency and commodities said “Following the success of property derivatives in Europe, the HKU-REIS enables Asia investors a new way to gain liquid exposure to real estate.”

Andrew Chan, vice president for property derivatives trading at Merrill Lynch in Hong Kong, said, “Hong Kong is one of the forerunners in the property derivatives market in Asia, which is integral to an eventual global platform for better managing real estate investments and risks.”

Professor KW Chau, chair of real estate and construction at the University of Hong Kong said, “The HKU-REIS is the most transparent, reliable and timely set of real estate price indices in Hong Kong.  We constructed the indices with derivatives trading very much in mind and we are gratified to see their growing acceptance for exactly this ? as well as becoming the benchmark for measuring the performance of Hong Kong real estate.”

“Property derivatives are slowly emerging in Asia Pacific” said Stephen Moore, head of property derivatives at GFI Colliers. “They offer a great way to both hedge property risk and gain exposure to sectors where perhaps hard assets are not available. Reliable indices are key to successful derivatives markets. We are delighted that these major banks recognise the quality of the HKU-REIS as a basis for property derivatives, and have shown their support by completing license agreements”.

The HKU-REIS is a series of monthly real estate price indices that track the change in price of residential properties.  The index series is based on transactions registered with Hong Kong’s Land Registry and currently comprises four indices. The HKU-ARPI covers the whole Hong Kong Special Administrative Region and is a value-weighted average of three sub-indices: Hong Kong Island (HKU-HRPI), Kowloon (HKU-KRPI) and the New Territories (HKU-NRPI).

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,500 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Englewood (NJ), and Sugar Land (TX). GFI provides services and products to over 2,000 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI™, Starsupply®, GFInet®, CreditMatch®, FENICS® and Amerex®.

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Alan Bright
PR Manager
GFI Group Inc.
+ 44 (0)20 7877 8049
alan.bright@gfigroup.co.uk