Settlement services - Argentina

27.11.2018

Pre-matching service

The table below summarises CBL’s pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CBL’s pre-matching services, see Pre-matching services for external settlement instructions.

Service offeredMethod employedStart (local time)
All securities
Immediate Release Flag availableManual (“best efforts” basis)On receipt of instructions
Connectivity mediumInstruction format
CreationOnline and Xact Web PortalTick to enable the "Immediate Release" option.
Xact via SWIFT and Xact File TransferField :22F::STCO/CEDE/IREL

Procedures for domestic counterparties

Clearstream Banking‘s counterparty in CVSA shall instruct CVSA as follows:

In order toClearstream Banking account details at CVSANumber to indicate
receive from/deliver toaClearstream Banking depositante account at CVSA8500
by order of/in favour ofaThe comitente sub-account of Clearstream Banking0004

a. As applicable.

Allowed countervalue difference

There is no difference in countervalue allowed at CVSA. If a difference is detected, the parties will be informed of such difference to amend their settlement instructions accordingly.

Matching service

As per local market practice, instructions are matched with the local counterparty before settlement.

The following fields constitute matching criteria:

  • Instruction type
  • Securities amount
  • Security identification
  • Delivering/receiving agent
  • Comitente subaccount

Matching results are reported on the day that the matching takes place.

Specific settlement rules / settlement restrictions

If an instruction is matched and a domestic counterparty has failed to deliver securities on the agreed settlement date, any party can unilaterally cancel a transaction that has not settled on the requested settlement date.

Funding of ARS

To fund against payment settlement instructions in ARS, customers can:

  • Use the existing Clearstream FX services described in the Customer Handbook; or
  • Use your existing balance in ARS derived from previous income proceeds if the funds are eligible for settlement purposes; or
  • Fund the account directly in ARS by paying to the Clearstream Banking Cash Correspondent Bank using the details included in the Cash Timings Matrix; or
  • Execute a foreign exchange instruction with a local third party foreign exchange agent.

Funds paid to the Clearstream Banking CCB ARS account must duly be identified, including the Clearstream Banking beneficiary account and they must be preadvised.

Customer accounts must be funded in order for against payment settlement instructions to be transmitted for settlement to Caja de Valores, the CSD. Failure to do so before the above mentioned settlement deadline, the instructions will remain in “Money Provision” until the account is duly funded.

Management of failed instructions

In accordance with market standard procedures, unmatched settlement instructions will be automatically cancelled by the CSD five (5) days after the value date that is, CVSA will try to settle an instruction with settlement value SD on  SD, on SD+1, on SD+2, on SD+3, up to value SD+4. The recycling will be done from one value date to another.

Failed transactions will be reported at the latest on the effective settlement date, providing the reason why the transaction was unsettled.

Some of the reported narratives shall be understood as follows:

NarrativeMeaning
Error TE 46 en alta: ERROR: SUBCUENTA CTPTE.NO EXISTE EN LA BASE"Counterparty subaccount is not valid"
Error TE 36 en alta: ERROR: DEP.CTPTE.NO HABILITADO EN CUSTODIA"Counterparty account is not valid"
Error TE 50 en baja: ERROR: TRANSFERENCIA INEXISTENTE "A cancellation request which is rejected since the references number does not exist"

New issues settlement

Transactions in new issues are settled at the start of real-time processing one or two business days after the distribution date in Buenos Aires.