Marex Group rejects Ningi Research short report

Marex Group rejects Ningi Research short report

Marex Group plc (NASDAQ: MRX), a diversified global financial services platform, has issued a strong rebuttal to a report published by Ningi Research, a short selling fund. The company categorically rejected the report as a malicious attempt to manipulate its share price for Ningi's profit from their short position. Marex emphasized its commitment to regulatory compliance and high standards of integrity across all jurisdictions. The company affirmed that it reports financials in accordance with IFRS standards and maintains strong corporate governance.

Marex Group stated that the report was published without any involvement by the company and contains factual inaccuracies, misstatements, and misleading allegations. The company will address the market and respond to analyst questions during its Q2 results announcement on August 13.

The Ningi Research report [1] alleged that Marex Group has engaged in a multi-year accounting scheme involving off-balance-sheet entities, fictitious transactions, and misleading disclosures to conceal losses and inflate profits. The report described Marex as "a financial house of cards" with unreliable financial statements.

Among the allegations, Ningi Research claimed that Marex used an opaque fund structure in Luxembourg to manipulate earnings and mask risk, including a bailout of a failed volatility fund in 2020 that concealed an estimated $27 million loss. The report also alleged that Marex created an undisclosed off-balance-sheet entity called "Marex Fund" holding over $930 million in derivatives.

The short seller further accused Marex of exploiting revenue recognition policies by selling OTC financial instruments to its secretly controlled off-balance-sheet fund, allowing executives to book immediate "fair value" gains and create "the illusion of massive profitability."

Ningi also highlighted what it calls fictitious cash flow reporting, claiming Marex improperly includes debt issuance in operating cash flow, which competitors like BGC and StoneX reportedly do not do. According to the report, when adjusted for this practice, Marex’s operating cash flow was negative $150 million in 2024 and negative $258 million in 2023.

The report draws connections between current Marex executives and Lehman Brothers’ collapse, noting that CEO Ian Lowitt was allegedly involved in Lehman’s "Repo 105" accounting scandal. It also points to aggressive insider selling, with private equity backers reportedly cashing out $1.13 billion since the company’s April 2024 IPO.

Marex Group had not publicly responded to the allegations at the time of publication.

References:
[1] https://ningiresearch.com/2025/08/05/marex-group-plc-nasdaq-mrx-a-financial-house-of-cards/
[2] https://seekingalpha.com/news/4478600-marex-group-drops-after-ningi-research-short-call
[3] https://uk.investing.com/news/stock-market-news/marex-stock-falls-after-ningi-research-issues-short-report-93CH-4201281
[4] https://www.stocktitan.net/news/MRX/marex-group-plc-issues-statement-regarding-ningi-research-hp3h09iw3yu1.html