Argentina: New regulations and controls of the securities market
Following Announcement A20139, Clearstream Banking1 would like to inform customers that effective
the Central Bank of Argentina (Banco Central de la República Argentina; BCRA) has issued Communication “A” 7142, which modifies the resolution established on BCRA Communication “A” 7106 and lifts certain restrictions imposed in mid-September 2020 to non-residents as follows:
- The Central Bank of Argentina has lifted the foreign investor restrictions to sell securities versus foreign currency in the local market meaning that delivery versus payment (DVP) transactions in foreign currency are now permitted for non-residents.
- Article 6 of the BCRA Communication “A” 7142 states: “Transactions traded abroad cannot be settled in ARS locally, being able to settle in ARS in the country only those transactions traded locally.” Subsequently, external DVP settlement against Argentinian Peso (ARS) in the local market is not allowed for ICSD participants.
Furthermore, the Comisión Nacional de Valores (CNV) has released Resolution 862 to reduce all parking periods for impacted transactions to three days. The minimum terms for holding securities are counted from the effective date of the credit of the security in the local custodian’s sub-account.
Securities received from an ICSD participant have a parking period of three business days before the local participant can sell them against ARS/ United States Dollar (USD) in the local market.
Exception: The three business-day parking period is not applicable for transfers of equities and CEDEARs traded in authorised markets.
Securities bought in ARS 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 transfers resulting from National Treasury primary auctions and/or for transfer of equities and CEDEARs traded in authorised markets.
Impact on customers
The main impact for ICSD participants is derived from Central Bank Resolution A7142 that prevents the settlement of external instruction in ARS as it is not possible to determine whether the trading of the transactions has been traded abroad or locally.
Therefore, external DVP transactions in ARS remain suspended until further clarification from the regulators. Customer domestic against payment settlement instructions in ARS with counterparties in Argentina at Caja de Valores (CSVA - the Argentinian CSD) will be rejected in the Clearstream Banking system and customers will be informed of the rejection.
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,
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.