OvalX (formerly ETX Capital) stops accepting new clients

On January 26^th, 2023, we received notification that OvalX (ETX Capital until May 2022) was no longer accepting clients through our websites. We were told that OvalX “are moving to right-size the company to better align with the current market environment, which includes certain cost-cutting measures and a consultation process with our employees and stakeholders…”

Naturally, we asked if the company itself was closing. We received a response repeating the original position but no further clarification on the future of the company. 

This exchange followed an unconfirmed report in Finance Magnates that the company had started cutting staff. Quoting an unnamed insider, Finance Magnates stated that “OvalX might be in the process of shutting down its operations and starting layoffs.”

OvalX’s parent company, Monecor, was acquired by Swiss private equity group Guru Capital in 2020 and merged with Oval Money, another Guru Capital acquisition, in 2021.

Based in the United Kingdom, OvalX’s finances have been dented by Brexit and the wider reduction in trading volumes. In 2021, the first financial year under Guru’s ownership, Monecor reported a net loss of £6.8 million, falling from a profit of £428,000 in the previous year.

In a statement, the CEO of Oval said, “2022 was a challenging year due to reduced trading volumes across financial markets, and we were not immune to the macro environment. However, we believe the steps we are taking today will bolster the strength of our overall business proposition over the near and long term. We are committed to providing the best-in-class products and services to our customers, and these efforts are necessary to ensure we continue to do so. We are well-capitalised, and it is business as usual at OvalX. Our customers can rest assured that they will continue to receive uninterrupted trading support services from us.”

It has also been reported that the Managing Partner of Guru Capital, Ryan Nettles, has stepped down from OvalX’s board to focus on other projects and that OvalX is in discussions with another broker regarding a merger or a sale of assets.

Less than two years ago, OvalX secured a licence from the Financial Sector Conduct Authority (FSCA) in Zambia and announced plans to expand outside of its traditional market in the United Kingdom. It now looks as if those plans have been shelved, at the very least.

This article will be updated with new information as we receive it.