<SEC-DOCUMENT>0000929638-25-001855.txt : 20250819
<SEC-HEADER>0000929638-25-001855.hdr.sgml : 20250819
<ACCEPTANCE-DATETIME>20250513195821
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ACCESSION NUMBER:		0000929638-25-001855
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20250513

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BGC Group, Inc.
		CENTRAL INDEX KEY:			0001094831
		STANDARD INDUSTRIAL CLASSIFICATION:	SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES [6200]
		ORGANIZATION NAME:           	09 Crypto Assets
		EIN:				863748217
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		499 PARK AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		212-610-2200

	MAIL ADDRESS:	
		STREET 1:		499 PARK AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BGC Partners, Inc.
		DATE OF NAME CHANGE:	20080404

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ESPEED INC
		DATE OF NAME CHANGE:	19990913
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    <div style="text-align: center; font-family: 'Times New Roman',Times,serif;">BGC Group, Inc.</div>
    <div style="text-align: center; font-family: 'Times New Roman',Times,serif;">499 Park Avenue</div>
    <div style="text-align: center; font-family: 'Times New Roman',Times,serif;">New York, New York 10022</div>
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    <div style="font-family: 'Times New Roman',Times,serif;">May 13, 2025</div>
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    <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;"><u>VIA EDGAR</u></div>
    <div style="font-family: 'Times New Roman',Times,serif;"><br>
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    <div style="font-family: 'Times New Roman',Times,serif;">United States Securities and Exchange Commission</div>
    <div style="font-family: 'Times New Roman',Times,serif;">Division of Corporation Finance</div>
    <div style="font-family: 'Times New Roman',Times,serif;">Office of Crypto Assets</div>
    <div style="font-family: 'Times New Roman',Times,serif;">100 F Street, NE</div>
    <div style="font-family: 'Times New Roman',Times,serif;">Washington, D.C. 20549</div>
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          <td style="width: 72pt; vertical-align: top; font-family: 'Times New Roman',Times,serif;">Attention:</td>
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            <div>Rolf Sundwall<br>
              Mark Brunhofer</div>
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          <td style="width: 36pt; vertical-align: top; font-family: 'Times New Roman',Times,serif; font-weight: bold;">Re:</td>
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            <div style="font-weight: bold;">BGC Group, Inc.<br>
              Form 10-K for Fiscal Year Ended December 31, 2024<br>
              File No. 001-35591</div>
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    <div style="font-family: 'Times New Roman',Times,serif;">Dear Sirs:</div>
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    <div style="text-indent: 36pt; font-family: 'Times New Roman',Times,serif;">On behalf of BGC Group, Inc. (the &#8220;Company&#8221;), we are writing in response to your comment letter, dated April 30, 2025, relating to the Company&#8217;s Annual Report on Form 10-K for
      the fiscal year ended December 31, 2024 filed on March 3, 2025 (the &#8220;Form 10-K&#8221;).</div>
    <div style="font-family: 'Times New Roman',Times,serif;"><br>
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    <div style="text-indent: 36pt; font-family: 'Times New Roman',Times,serif;">For your convenience, the Company has repeated your comment in full, and the Company&#8217;s response is consistent with the numbering of the comment and heading used in your letter.</div>
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    <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;"><u>Form 10-K for Fiscal Year Ended December 31, 2024</u></div>
    <div style="font-family: 'Times New Roman',Times,serif;">&#160;</div>
    <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;"><u>Notes to Consolidated Financial Statements</u></div>
    <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;"><u>Note 20. Income Taxes, page 190</u></div>
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          <td style="width: 36pt; vertical-align: top; font-family: 'Times New Roman',Times,serif; font-weight: bold;">1.</td>
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            <div style="font-weight: bold;">We note the $9,154,000 reconciling item in your rate reconciliation for 2024 at the bottom of page 191 attributed to "Available for sale securities mark-to-market--U.S. GAAP Adjustment." We also note that this
              reconciling item represents 18.3% of your tax provision in 2024 and that it increases your effective tax rate by 5.3 percentage points. Please tell us the nature of this reconciling item and explain why it impacts your rate reconciliation. In
              your response, specifically explain:</div>
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          <td style="width: 18pt; vertical-align: top; font-family: 'Times New Roman',Times,serif;">&#8226;</td>
          <td style="width: auto; vertical-align: top; font-family: 'Times New Roman',Times,serif;">
            <div style="font-weight: bold;">Why you characterize the reconciling item as related to available for sale securities when it appears from your Financial Instruments Owned, at Fair Value policy note on page 146 that these investments are
              classified as trading securities; and</div>
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    <div style="font-family: 'Times New Roman',Times,serif;">&#160;</div>
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          <td style="width: 18pt; vertical-align: top; font-family: 'Times New Roman',Times,serif;">&#8226;</td>
          <td style="width: auto; vertical-align: top; font-family: 'Times New Roman',Times,serif;">
            <div style="font-weight: bold;">Why the attributes of this reconciling item are apparently not temporary differences that result in no net impact on your effective rate and rate reconciliation.</div>
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    <div style="font-family: 'Times New Roman',Times,serif;">United States Securities and Exchange Commission</div>
    <div style="font-family: 'Times New Roman',Times,serif;">Division of Corporation Finance</div>
    <div style="font-family: 'Times New Roman',Times,serif;">May 13, 2025</div>
    <div style="font-family: 'Times New Roman',Times,serif;">Page 2 of 3</div>
    <div style="font-family: 'Times New Roman',Times,serif;">&#160;</div>
    <div style="font-family: 'Times New Roman',Times,serif; font-style: italic; font-weight: bold;">Response #1</div>
    <div style="font-family: 'Times New Roman',Times,serif;">&#160;</div>
    <div style="margin-left: 36pt; font-family: 'Times New Roman',Times,serif;">The $9.154 million reconciliation item within note 20, <font style="font-style: italic;">Income Taxes</font> (&#8220;note 20&#8221;), to the financial statements contained in the Form
      10-K relates to certain equity interests held at a foreign subsidiary of the Company.&#160; These equity&#160;interests are accounted for under the measurement alternative methodology pursuant to ASC Topic 321, <font style="font-style: italic;">Investments -
        Equity Securities</font>.&#160; These equity interests are included within &#8220;Other assets&#8221; in the Company&#8217;s consolidated statement of financial condition and are remeasured to fair value, with changes recorded in net income during the period, when
      observable price changes occur.</div>
    <div style="font-family: 'Times New Roman',Times,serif;">&#160;</div>
    <div style="margin-left: 36pt; font-family: 'Times New Roman',Times,serif;">However, legal title to these equity interests is held at a foreign subsidiary of the Company.&#160; The foreign subsidiary separately records, for local reporting purposes, the
      unrealized gain and corresponding deferred tax liability under local accounting rules, which differ from U.S. GAAP and include an element comparable to &#8220;available-for-sale.&#8221;&#160; In preparing the reconciliation table included within note 20, the Company
      carried over the terminology &#8220;AFS MTM&#8221; from the records of the foreign subsidiary.&#160; The Company acknowledges that such terminology is confusing and will not use that term in future filings.</div>
    <div style="font-family: 'Times New Roman',Times,serif;">&#160;</div>
    <div style="margin-left: 36pt; font-family: 'Times New Roman',Times,serif;">For the year ended December 31, 2024, the Company properly recorded a $36.6 million unrealized gain relating to an increase in fair value of these equity interests, which was
      recorded in &#8220;Other income (loss)&#8221; in the Company&#8217;s consolidated statement of operations. &#160;The related deferred tax liability was properly provided for as a temporary difference in the &#8220;tax expense at federal statutory rate&#8221; line item within note 20
      in the Form 10-K.&#160; The presentation in note 20 may have given the appearance that the $9.154 million reconciling item represented a permanent difference in the Company&#8217;s rate reconciliation.&#160; This is not the case.</div>
    <div style="font-family: 'Times New Roman',Times,serif;">&#160;</div>
    <div style="margin-left: 36pt; font-family: 'Times New Roman',Times,serif;">In preparing the reconciliation table included within note 20, the Company presented offsetting reconciling items as a result of the local presentation of the financial
      statements.&#160; Specifically, the $9.154 million tax liability presented in the &#8220;AFS MTM - U.S. GAAP Adjustment&#8221; line is offset by a $9.154 million tax benefit presented within the &#8220;Other permanent differences&#8221; line item, which line item is presented on
      a net basis, obscuring the presence of the $9.154 million tax benefit.&#160; Rather than representing 18.3% of our tax provision in 2024 and increasing our effective tax rate by 5.3 percentage points, as the Staff&#8217;s comment notes, the $9.154 million
      reconciling item had no net effect on the effective rate, rate reconciliation, or reported provision for income taxes.</div>
    <div style="font-family: 'Times New Roman',Times,serif;">&#160;</div>
    <div style="margin-left: 36pt; font-family: 'Times New Roman',Times,serif;">In future filings, to clarify the matter, presentation of similar items within the Company&#8217;s effective tax rate reconciliation disclosure will be presented in a single line
      item, which will help avoid potential confusion regarding the temporary nature of these items. We believe this will more clearly present the tax accounting for changes in the fair value of these equity interests. &#160;</div>
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    <div style="text-indent: 36pt; font-family: 'Times New Roman',Times,serif;">Any questions or comments regarding the foregoing should be directed to the undersigned at (646) 346-6869.</div>
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    <div style="font-family: 'Times New Roman',Times,serif;">United States Securities and Exchange Commission</div>
    <div style="font-family: 'Times New Roman',Times,serif;">Division of Corporation Finance</div>
    <div style="font-family: 'Times New Roman',Times,serif;">May 13, 2025</div>
    <div style="font-family: 'Times New Roman',Times,serif;">Page 3 of 3</div>
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    <div style="margin: 0px 0px 0px 50%;">BGC GROUP, INC.<br>
      <br>
      By:&#160;&#160;<u> /s/ Jason W. Hauf&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</u><br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Name: Jason W. Hauf<br>
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Title:&#160;&#160; Chief Financial Officer</div>
    <div style="font-family: 'Times New Roman',Times,serif;">&#160;</div>
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          <td style="width: 36pt; vertical-align: top; font-family: 'Times New Roman',Times,serif;">cc:</td>
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            <div>Stephen M. Merkel, Esq. (BGC Group, Inc.)<br>
              Jerry Gruner (Ernst &amp; Young, LLP)<br>
              Leland S. Benton, Esq. (Morgan, Lewis &amp; Bockius LLP)</div>
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