Monecor (London) Limited, an FCA-regulated FX/CFDs brokerage operator that previously ran under the banner of OvalX and rebranded from ETX Capital, will undergo voluntary liquidation in the UK. This move was unveiled through official regulatory filings in the country.

Stephen Cork and Mark Smith, who are licensed insolvency practitioners from Cork Gully LLP, will take on the roles of Joint Liquidators for this liquidation. Earlier this year, Monecor took a significant step by selling OvalX's client base to industry rival Capital.com.

The Collapse of OvalX

During the transition, the company stated that the move ensured that there was uninterrupted provision of services and provided OvalX's clients with access to a secure trading platform . Previously, OvalX operated in the UK's financial spread-betting and CFDs industry.

However, when the company allowed its clients to transfer their accounts to Capital.com, it marked the beginning of the end for OvalX. Earlier this year, the company effectively ceased operations. This occurred after Jump Capital, a US-based venture capital firm, withdrew financial support from the firm.

While Monecor maintains its authorization from the Financial Conduct Authority , the regulatory body officially listed the company as "In Liquidation" as of September 6, 2023. The initial liquidation filings indicate a relatively optimistic outlook, as the company expects to settle its debts in full within a year from the commencement of the liquidation process.

A closer examination of Monecor's financial report reveals that the company holds remaining liquid assets amounting to approximately £1.36 million. In contrast, after paying off its liabilities, which include an estimated £150,000 for windup costs along with other expenses, leaves a rounded-up surplus of £653,000.

Earlier, Finance Magnates reported that the management of OvalX had officially confirmed that the company will cease operations on March 17, 2023. Following the move, clients had reportedly received notifications offering them the choice to transfer their accounts, positions, and funds to Capital.com.

Sale of Client Book to Capital.com

The decision to shutter OvalX followed a sequence of events within the company. OvalX laid off a significant portion of its workforce in January, signalling underlying challenges. An insider closely associated with OvalX has revealed to Finance Magnates that the company has initiated staff layoffs, raising concerns about its long-term viability.

OvalX's journey traces back two decades when it began as TradIndex and later rebranded as ETX Capital. In May 2022, it transformed into OvalX following an acquisition by Switzerland-based private equity firm Guru Capital in October 2020. The ownership transition included funding from US-based venture capital firm Jump Capital, which has a partner, Saurabh Sharma, who previously joined Monecor's Board.