Settlement services - Argentina
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 offered||Method employed||Start (local time)|
|Immediate Release Flag available||Manual (“best efforts” basis)||On receipt of instructions|
|Connectivity medium||Instruction format|
|CreationOnline and Xact Web Portal||Tick to enable the "Immediate Release" option.|
|Xact via SWIFT and Xact File Transfer||Field :22F::STCO/CEDE/IREL|
Procedures for domestic counterparties
Clearstream Banking‘s counterparty in CVSA shall instruct CVSA as follows:
|In order to||Clearstream Banking account details at CVSA||Number to indicate|
|receive from/deliver toa||Clearstream Banking depositante account at CVSA||8500|
|by order of/in favour ofa||The comitente sub-account of Clearstream Banking||0004|
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.
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:
|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.