An industry source close to OvalX (formerly ETX Capital) has disclosed that the FX and CFDs broker may be shutting down its operations. They’re initiating layoffs following its takeover by Swiss private equity firm Guru Capital.
Reports have indicated that the company has begun to let go of its personnel. Unfortunately, they will still need to determine when they will eventually cease their activity. Meanwhile, OvalX has merely offered a standard reply of ‘business as usual.’
OvalX’s Response
In an official statement, OvalX confirmed that it is actively conducting a strategic review of its business in response to the current economic climate. The firm affirmed that they were implementing cost-cutting and efficiency measures to optimize operations. However, the firm did not mention plans for the complete shuttering of services.
Currently, the company is carefully analyzing its costs and engaging various stakeholders to lower expenses while discovering proactive solutions. It includes possible merger or asset sale discussions with another broker as well. Furthermore, it has initiated a consultation process involving some employees who have not disclosed any details about potential layoffs.
Luca Merolla, the CEO of Oval Money and former Guru executive, issued a statement ensuring that “business is as usual” at their well-funded company. Merolla assumed leadership following Philip Adler’s departure.
According to Luca, despite the global economic downturn in 2022 and a noticeable decrease in trading volumes, their commitment to superior customer service remains unwavering. The firm continually explores various methods to stay strategic and competitive. He added that OvalX is still meeting its standard for excellent trading support services and providing customers with the experiences they expect.
Poor Business Performance
Ryan Nettles recently announced his departure from Monecor Limited, the company behind OvalX and formerly ETX Capital. It comes on the heels of a pre-tax loss of £9.2 million in their first financial year under his leadership.
Brexit significantly impacted profits, leading to a sharp decline in trading revenue – down 45% compared to the previous year. Despite this, their funding revenue climbed by 39% due to an increase in professional clients, giving some insight into Nettle’s strategy for the company.
Before his resignation, Mr. Nettles had expressed hopes for a new venture that would require his full attention and commitment. He remained confident that it could eclipse his work with Monecor Limited and presents a challenge for them in the future as they attempt to regain their previous successes without his direct guidance.
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