Following our earlier FNG Exclusive report from yesterday that London based online broker OvalX (formerly known as ETX Capital) was finalizing the sale of its client base to rival broker Capital.com, a formal announcement has been made by the parties confirming the transaction.

Capital.com also confirmed that it has onboarded yet another former IG Group (LON:IGG) executive to its management team, hiring Niamh Byrne as Capital.com’s new Head of UK and Ireland, responsible for building strong client relationships and driving overall strategy to ensure optimal client satisfaction and growth in those markets. Niamh Byrne spent the past 14 years at IG, and most recently was Head of Global B2B2C Sales at IG. We’d remind FNG readers that Capital.com is now run by former IG Group CEO Peter Hetherington.

But back to the Capital.com-OvalX transaction…

In what seems to be a fairly carefully worded statement, Capital.com said that it has entered an agreement with Monecor (London) Limited – the FCA regulated unit that runs OvalX – and Oval Money (Europe) Ltd which will see OvalX “offer some of its existing retail and professional clients the opportunity to transfer their accounts to Capital.com.”

What this seems to mean is that the clients will not be forced to move their accounts from Monecor/OvalX to Capital.com’s FCA licensed unit (or CySEC licensed unit, for those clients in the EU), and that compensation will be paid by Capital.com based on some formula of how many clients / how much client money comes in.

The parties added that this will ensure continuity of service for OvalX clients and allow them to continue trading, without disruption. As part of the attempt to get clients to move over to Capital.com, the company has put up an “FAQ” page at https://capital.com/ovalx-faq.

Peter Hetherington, Group Chief Executive Officer of Capital.com, said:

“OvalX, which began life 20 years ago as TradIndex and then ETX Capital, has a long and reputable track record in the UK financial spread-betting and CFD industry. This agreement is an important step towards continuing that legacy. Both our companies share the same unwavering commitment to provide our clients with great customer service, a  seamless user experience and ample educational resources on a secure trading platform. We are excited to welcome consenting OvalX clients to Capital.com and look forward to supporting them in their trading journeys.”

Luca Merolla, Chief Executive Officer at OvalX, said:

“OvalX, previously ETX Capital, has been at the heart of the UK financial spread-betting and CFD industry for many years. We believe that our legacy is in safe hands with Capital.com who are perfectly placed to look after the smooth transfer of clients over the coming weeks. Capital.com’s focus on customer service, education, and product development makes them a great fit for our active trader clients.”

In addition to ensuring continuity of service for consenting clients of OvalX, this agreement marks Capital.com’s commitment to continue to evolve, scale and grow its business in the UK and EU. To support this initiative and further drive the UK business, Capital.com has recently appointed Niamh Byrne as Head of UK and Ireland, as noted above.

Niamh Byrne, Head of UK and Ireland, Capital.com, said:

“I am thrilled to be joining a great team at Capital.com. The UK and EU are strategically important markets for Capital.com. With this agreement, we will be in a good position to further broaden our portfolio of products and accelerate our development. We are committed to building a best-in-class CFD and spread-betting business to meet the exacting needs of our new and existing clients.”

Capital.com operates several licensed subsidiaries in the UK, Australia, and Cyprus. The company, and its sister brand Currency.com are controlled by British tech entrepreneur Victor Prokopenya.