Forex Broker Nearly Collapsed Due to Dollar Crash, Competitor Acquires It for 4% of Value

Monday, 28/04/2025 | 06:53 GMT by Damian Chmiel

The high-risk strategy known as “zero-zero” lines proved disastrous for Argentex amid the sharp decline in the U.S. dollar.

As a result, the company, which had a market cap of $69 million, was acquired to avoid collapse and valued at £3 million.

Foreign exchange (FX) broker Argentex has agreed to be acquired by rival IFX Payments in a deal valuing the troubled company at approximately £3 million, following a severe liquidity crunch triggered by recent turmoil in global currency markets.

Broker Argentex Rescued by IFX Payments After Dollar Crash

Argentex Group Plc, a London-listed provider of currency risk management and alternative banking services, was forced to suspend trading of its shares on April 22 after a sharp decline in the U.S. dollar led to significant margin calls and a rapid deterioration in its liquidity position. The company, which had built up substantial U.S. dollar exposures for clients without securing sufficient collateral, was left exposed when the dollar fell to a three-year low against major currencies.

Trading in Argentex shares (left) was suspended as the dollar fell to a three-year low (right)

To stabilize operations, Argentex secured a £6.5 million bridging loan from IFX Payments, which is also in discussions to provide further liquidity support. The acquisition, recommended unanimously by the Argentex board, will see shareholders receive 2.49 pence per share. Holders representing over 58% of Argentex’s share capital have already pledged to support the deal.

Will Marwick, CEO at IFX Payments, Source: LinkedIn

“We are very pleased to announce the proposed acquisition of Argentex, which will enhance our regulated capabilities, diversify our product portfolio, particularly in FX risk management and institutional offering, and further expand our geographical reach and network,” said Will Marwick, CEO at IFX Payments.

Zero-Collateral Bet Backfires

The company’s liquidity crisis was exacerbated by its use of “zero-zero” margin arrangements, allowing some clients to trade without posting collateral. When the dollar’s value dropped abruptly-driven by new U.S. tariffs and critical remarks from President Donald Trump-Argentex faced margin calls from its own banking partners but did not have corresponding collateral from clients, leading to a cash shortfall.

Argentex’s CEO, Jim Ormonde, resigned immediately ahead of the deal announcement. Chief Operating Officer Tim Rudman has been named interim CEO as the company transitions through the acquisition process.

H2 2025

The transaction is subject to regulatory approval and is expected to be completed in the second half of 2025. IFX Payments, a cross-border payments and fintech firm, aims to use the acquisition to expand its regulated FX capabilities and institutional client base.

Argentex’s board stated that the immediate cash value offered by the deal was preferable to the limited returns shareholders might receive if the company entered insolvency. The company had previously declined two other non-binding offers, including one from Lumon Acquisitions.

The acquisition comes amid heightened scrutiny from regulators. The Financial Conduct Authority (FCA) has recently stepped up oversight of liquidity risk management and contingency planning among wholesale trading firms, following a series of market disruptions.