Two years after Swiss private equity company Guru Capital took over CFD and FX broker ETX Capital, now OvalX, sources say the broker has begun laying off its employees. On January 26th, 2023, an internal source leaked the news of a massive retrenchment rate at the company.
While there have been several speculations in the financial markets regarding the implication of these layoffs, it is quite unclear what the action may indicate. According to market sources, a more likely indication is that the broker plans to cease its operations quietly.
Details of OvalX Layoffs
While the news of massive layoffs and speculations of closure have rocked OvalX, the company is doing everything possible to douse this report. According to an official statement by Luca Merolla, the CEO of Oval Money, there is no cause for alarm. In his words, "It's business as usual at OvalX."
Luca hinted that the company's management is only working to improve its operations and adapt to the current economic situation. Hence the company is adopting a strategic assessment of its cost base.
The CEO said the company had incurred a £9.2 million pretax loss that affected the company's reputation. He pointed out that a sizable portion of the sector has seen trade volumes significantly decline.
He also confirmed that discussions regarding a potential merger or asset sale are underway. The company is also ongoing a "consultation process with some employees." He, however, did not state whether or not it'd shut down its operations or make any mention of the layoffs
Luca, however, reassured OvalX clients that the company would continue to operate on a "business as usual" basis and uphold the standards to which its clients have been accustomed. He further revealed that the company plans to explore various strategic options to offer its best, hence its cost-cutting and efficiency program.
About OvalX
Initially incorporated as Dusrolgraph Ltd in June 1965, the company has grown to become a strong financial organization. In October 2020, Swiss-based private equity firm, Guru Capital, acquired ETX Capital from UK-based JRJ Group, and the company rebranded as OvalX in June 2022.
Despite being under different management, OvalX has sustained its outstanding service offerings. This has earned the broker special recognition and awards, including the Best Futures & Options Broker Awards in 2011 and 2012.
The Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC) regulate the company. OvalX is committed to assisting its customers in making the best financial decisions in both its trading and saving services.
