Settlement services - Argentina

21.09.2020

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 available

Manual (“best efforts” basis)

On receipt of instructions

Connectivity mediumInstruction 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 toClearstream Banking account details at CVSANumber 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.

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.

Further to the applicability of Central Bank Communication “A” 7106 and Comisión Nacional de Valores (CNV) Resolution 856 dated 16 September 2020 introducing changes and new restrictions on both the foreign exchange and securities market: 

  • DvP external transactions in Argentinian Pesos (ARS) are not allowed in CBL (it has been established that transactions of securities traded and acquired offshore are not allowed to settle in ARS in the local market).
  • In addition, FOP external securities transactions are allowed but subject to parking periods by the local resident on the local market:

If CBL customers receive free from a local resident and then deliver free again to another local resident, no parking period is needed.

However, any receipt free of payment transactions on the local market by local residents are subject to either a 15-business day parking period (if the securities were bought/or before being available to be sold versus ARS in the local market) or a five-business day parking period (for settlement of securities sales versus foreign currency).

All minimum terms for holding securities are counted from the effective date of credit of the security in the local custodian’s subaccount.

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.