IFS calls in receivers, seeks buyer

FX trading technology firm IFS has gone into receivership following an unproductive takeover of Dene International and a drop in sales of its flagship product, a spokesperson for the firm said.

The Dublin-based company, which has won several 'Best Bank' awards from RiskNews' sister publication FX Week (fxweek.com) for its MarginMan collateralised FX dealing system, is now operating with a skeleton staff, following the move into receivership. The receivers made all staff redundant, but rehired around nine people to keep the company running.

"It was a shock to many people, but the capital markets have changed a lot in a short time. We have seen a lot of cutbacks and the focus is going back to profitability," said an IFS spokesperson.

Sources said that last year’s purchase of fellow FX technology firm Dene International was the catalyst that led to IFS’s problems. Following the takeover, IFS found itself supporting an additional 30 staff but projected revenues failed to materialise, these sources claimed. The companies demerged in March, but IFS was left with a large number of staff and a drop in sales of MarginMan.

Around 30 positions were axed in May, sources said, but the move was not enough to hold off the receivers.

But IFS remains confident a buyer will soon be found. "We are confident there will be a buyer for the company within weeks and we have seen a high level of interest," the IFS spokesperson said. "We have a large customer base and everyone sees the business as viable."

The spokesperson added that IFS’s customer base had responded well to the news. "We have contacted all MarginMan customers and received a great amount of support in terms of sticking with the company."

IFS had signed agreements to link its products to three multi-bank FX portals, FXall, Currenex and Atriax. An Atriax spokesperson said its agreement with IFS involved no financial commitments. Currenex will also remain unaffected by the situation at IFS, a spokesperson claimed.