Argentina: New parking periods in the local market
Following Announcement A20180 Clearstream Banking1 would like to inform customers that effective
the Comisión Nacional de Valores (CNV) published Resolution 871/2020 reducing the parking period to trade DVP transactions versus foreign currency in the local market from two business days to one.
The resolution also specifies that securities received from ICSDs will be now subject to a one business day parking period before being sold versus foreign currency in the local market. All minimum terms for holding securities are counted from the effective date of credit of the security in the local custodian’s subaccount.
New parking periods in the local market
Securities transferred from ICSDs (from a local market perspective):
- Can be sold against ARS by the local participant in the local market without any parking period observation.
- Will be now subject to a one-business day parking period before the local participant can sell them against USD in the local market.
- Are subject to a three-business day parking period before the local participant can sell them against USD under foreign jurisdiction or transfer them free of payment.
Deliveries to ICSDs (from a local market perspective):
- Securities bought in ARS or free of payment in the local market have a parking period of three business-days before the local participant can deliver the securities to an ICSD participant.
Exception: The three business-day parking period is not applicable for transfer resulting from National Treasury primary auctions and/or for transfer of equities and CEDEARs (Certificados de Depósito Argentinos) traded in authorised markets by the CNV.
- The local participant has no parking period to deliver to an ICSD participant the securities that have been initially bought in USD in the local market.
Impact on customers
External DVP transactions in ARS remain suspended until further clarification from regulators.
Alternatively, Clearstream Banking customers can settle external transactions on a free of payment basis.
Internal and Bridge transactions are open to ARS settlement.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.