FX Broker Argentex Nearly Collapsed After ‘Zero-Zero’ Margin Dollar Trades

Argentex Group Plc, the UK finance firm set up to help customers manage volatile currency swings, should have taken some of its own advice.

The London-based brokerage amassed US dollar trades for its clients yet didn’t obtain enough collateral from them in return, people familiar with the matter said. That’s partly because Argentex pursued a high-risk strategy with some customers known as “zero-zero lines,” according to the people, who requested anonymity as details aren’t public.