Monecor Unravels: Voluntarily Liquidates Operations in the UK

<p>Monecor (London) Limited, a prominent FCA-regulated
entity that once operated under the banners of ETX Capital and OvalX Retail FX
and CFD brokerage, will undergo voluntary liquidation in the UK. This move was unveiled through official regulatory filings in the
country. </p><p>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.</p><p>The Collapse of OvalX</p><p>During the transition, the company stated that the move
ensured that there is uninterrupted provision of services and provided OvalX's clients with
access to a secure <a href="https://www.financemagnates.com/terms/t/trading-platform/">trading platform</a>. OvalX operates in the UK's financial
spread-betting and CFD industry.</p><p>However, when the
company allowed its clients to transfer their accounts to Capital.com, it
marked the beginning of the end for OvalX. Early this year, the company
effectively ceased operations. This occurred after the US-based venture capital
firm Jump Capital withdrew financial support from the firm.</p><p>While Monecor maintains
its authorization from the <a href="https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/">Financial Conduct Authority (FCA</a>), 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.</p><p>A closer examination of
Monecor's financial report reveals that the company holds remaining liquid assets
amounting to approximately £1.36 million. In contrast, its liabilities,
including an estimated £150,000 for windup costs, total just £653,000. </p><p><a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported in
April that the management of OvalX had officially confirmed that the company
will <a href="https://www.financemagnates.com/executives/ovalxs-foulds-moves-to-alvar-financial-after-20-years/" target="_blank" rel="follow">cease
operations on March 17, 2023</a>.
Following the move, clients had reportedly received notifications offering them
the choice to transfer their accounts, positions, and funds to Capital.com.</p><p>Sale of Client Book to
Capital.com</p><p>The decision to shutter OvalX followed a sequence of
events within the company. OvalX <a href="https://www.financemagnates.com/forex/brokers/ovalxs-previously-etx-capital-future-in-doubt-as-layoffs-begin/" target="_blank" rel="follow">laid
off a significant</a> portion
of its workforce in January, signaling 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.</p><p>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 <a href="https://www.financemagnates.com/forex/guru-capital-closes-acquisition-deal-of-etx-capital/" target="_blank" rel="follow">acquisition
by Switzerland-based</a> private
equity firm Guru Capital in October 2020. The ownership transition included
funding from US-based venture capital firm Jump Capital, which had a partner,
Saurabh Sharma, join Monecor's Board.</p>

This article was written by Jared Kirui at www.financemagnates.com.