The collapse of Argentex LLP in 2025 shocked the foreign exchange industry and exposed major weaknesses in its risk management and regulatory compliance. Based in the UK, the firm offered currency risk and international payment services to corporate clients and promoted itself as a stable, well-managed business.
However, its reliance on high-risk, margin-free “zero-zero” contracts left it exposed when currency markets turned volatile in the spring. As liquidity dried up, Argentex was forced to stop trading. The company entered special administration on July 21, followed shortly by its parent, Argentex Group PLC.
A Fragile Recovery
In early April 2025, Argentex appeared to be stabilizing after steep share price declines in the first quarter. The company held an investor presentation where CEO Jim Ormonde described the period as a corporate reset, outlining plans to improve operational efficiency and restore profitability. He also highlighted long-term growth opportunities, including enhancements to client services and liquidity provider relationships.
The market responded positively. Argentex’s share price rallied from its March lows, and insider share purchases by senior executives signaled internal confidence. However, critical vulnerabilities remained unresolved, particularly the company’s heavy dependence on uncollateralized client trades that left it highly exposed to market stress.
Volatility Exposes the Cracks
On April 2, 2025, global currency markets were shaken when President Trump announced sweeping “Liberation Day” tariffs. The U.S. dollar dropped sharply, safe-haven currencies like the Swiss franc surged, and volatility spiked across the board. For Argentex, the impact was severe.
The company’s “zero zero” contracts let clients trade without putting up any initial margin. This made the service attractive but left Argentex fully exposed when prices moved suddenly. As markets swung, liquidity providers issued margin calls that Argentex could not pass on to its clients. In less than two weeks, the company burned through over £20 million to cover these demands, far exceeding its available cash reserves.
Trading Suspension and Rapid Unraveling
On April 22, 2025, Argentex asked for its shares to be suspended from trading due to a sudden liquidity crisis as margin calls overwhelmed its FX forward and options portfolios. Several potential rescue proposals emerged, and by April 25, the company agreed to be acquired by IFX Payments for £3 million, a drastic drop from its previously estimated £52 million valuation.
CEO Jim Ormonde left immediately, and Tim Rudman became interim CEO. CFO Guy Rudolph and several board directors resigned shortly after. When shares resumed trading in May, they collapsed, erasing nearly all of the stock’s prior value.
A Deal in Doubt
Shareholders approved the IFX Payments deal on 11 June 2025. As part of the agreement, IFX provided a £20 million credit facility and a £10.5 million bridging loan to support the company’s liquidity. Soon after the deal was announced, concerns emerged about hidden liabilities and complex terms related to insolvency.
By mid-May, IFX warned it might back out of the deal. The company had included a clause that allowed it to withdraw if Argentex entered administration. As that possibility became more likely, IFX began talks with the UK Takeover Panel. The growing uncertainty added more pressure to an already fragile situation.
Regulatory Action
On July 15, the UK Financial Conduct Authority imposed a Voluntary Requirement on Argentex LLP, the company’s main trading arm. The order stopped the firm from accepting new clients, processing trades, or handling client funds.
Argentex failed to meet its required liquidity levels and shut down all business operations by July 17. Interim CEO Tim Rudman resigned shortly after, adding to the leadership crisis. The FCA took action to protect client money and ensure the business was wound down in line with UK financial regulations.
What Went Wrong?
Argentex’s collapse exposed serious failures in risk management, governance, and regulatory oversight. The company’s use of zero-margin “zero-zero” contracts left it highly exposed to market swings without collateral protection.
Regulatory safeguards proved ineffective, and clients were suddenly cut off from services with little clarity on when or how their funds would be returned. Despite being a licensed and regulated firm, Argentex lacked the internal controls needed to manage its risk.
Industry Implications
Argentex’s collapse shook confidence in fast-growing fintech companies in the foreign exchange industry. The company took big risks, lacked transparency, and relied more on appearances than solid financial strength. When markets turned volatile, it couldn’t cope, and the business quickly fell apart. The crisis has raised concerns for regulators and investors, who may now push for stricter rules, better oversight, and stronger financial safeguards.