22 April 2018
Visit http://response.ncr.com

Basis100 capital markets subsidiary EFA files for bankruptcy protection

06 November 2002  |  3350 views  |  0 stock exchange

EFA Group, a subsidiary of Basis100 and supplier of exchange technology to the capital markets industry, has filed for bankruptcy protection in Canada while it seeks a buyer for its assets.

The group, which includes EFA International and EFA Software Services, is exploring opportunities to sell its asset including interests in two offshore subsidiaries, ADR Management Ltd. and EFA (Cyprus) Ltd.

The group provides solutions across the spectrum of capital markets activity, from clearing and settlement, order-routing and trading, through to integration and professional services. EFA's Horizon product was selected by Deutsche Bourse subsidiary Xlaunch as the technology foundation for B2B and OTC trading exchange sales. Other customers include some 35 smaller stock markets across the Middle East and in Iceland, Bermuda and Hungary.

Basis100 acquired the EFA Group in January 2002 and created a new capital markets solutions division to market its products, but it has failed to deliver consistent and predicatable earnings. In September, the Toronto-based company axed half the staff in the division, laying off a total of 82 personnel, including 17 contractors.

At the time, Basis100 was forecasting revenues for the division for 2002 to be approximately $18 million with an overall contribution margin of $4.6 million, including a $2 million restructuring charge to be taken in Q3.

In a statement, Gary Bartholomew, chairman and CEO of Basis100, says: "Basis100 will not continue to fund this subsidiary as, even in its current downsized state, it remains unable to generate sufficient cash to cover its costs and achieve a cash flow neutral position."

Basis100’s core businesses of Lending Solutions and Data Warehousing and Analytics solutions remain healthy and expect to deliver revenues in line with guidance, says Bartholomew. In addition, the BasisXchange technology, currently in use by CanDeal, is not affected by this event, as it is a core Basis100 technology.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

OM offers exchange outsourcing; upgrades Click

OM offers exchange outsourcing; upgrades Click

06 November 2002  |  3470 views  |  0 comments
Basis100 touts US mortgage processing utility

Basis100 touts US mortgage processing utility

22 October 2002  |  2318 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
Visit http://wup.digitalVisit http://response.ncr.com

Top topics

Most viewed Most shared
Top tier banks pass first transactions on trade finance blockchainTop tier banks pass first transactions on...
11229 views comments | 19 tweets | 26 linkedin
TransferWise becomes first non-bank to open settlement account with BofE RTGSTransferWise becomes first non-bank to ope...
9980 views comments | 18 tweets | 32 linkedin
Revolut launches spare change savings toolRevolut launches spare change savings tool
9871 views comments | 14 tweets | 19 linkedin
Barclays Bank sets up tech venture unitBarclays Bank sets up tech venture unit
9057 views comments | 16 tweets | 22 linkedin
Goldman Sachs acquires PFM startup Clarity MoneyGoldman Sachs acquires PFM startup Clarity...
8468 views comments | 9 tweets | 10 linkedin

Featured job

Basic c. EUR 90K OTE c. EUR 180K plus full bene...
Paris (preferred) or London

Find your next job