Argentina: Introduction of against payment settlement service in ARS
Following the communications N°8596 and N°8623E of 2017 from Caja de Valores, the Argentinian CSD, effective
19 November 2018
Clearstream Banking1 will offer against payment settlement services in Argentinian Pesos (ARS), on all eligible Argentinian asset classes, that is government bonds, corporate bonds, equities and related instruments. In line with the local Regulator, the Comisión Nacional de Valores, the Depositantes are deemed to register such transactions in an authorised market.
Impact on customers
Customers must fund their account in ARS as per the deadlines mentioned below:
Settlement times in Central European Time (CET)
28 October 2018 - 30 March 2019
Instruction | Provisioning | Deadline for receipt of valid instruction | Expected settlement results | |||
start | end | from | to | |||
AP=Against Payment SD=Settlement date | ||||||
Receipts | AP | 21:30 | 16:00 SD | 16:00 SD | 14:00 | 23:00 |
Deliveries | AP | 21:30 | 16:00 | 16:00 SD | 14:00 | 23:00 |
Settlement times in Buenos Aires time
Instruction | Provisioning | Deadline for receipt of valid instruction | Expected settlement results | |||
start | end | from | to | |||
Receipts | AP | 16:30 | 12:00 SD | 12:00 SD | 10:30 | 16:00 |
Deliveries | AP | 16:30 | 12:00 SD | 12:00 SD | 10:30 | 16:00 |
Matching tolerance
For matching and settlement purposes, there can be no difference in the cash amounts entered in settlement instructions between the counterparties. Any difference in cash amounts will lead to unmatched and unsettled instructions.
The existing recycling and cancellation rules defined for free of payment instructions will be applicable to the against payment instructions.
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 their 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 instruction(s) 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.
Settlement instruction formats
MT541 | Receive Against Payment | Seq | ||
M | :98a: | :TRAD | //Trade date/time | B |
O | :90a: | :DEAL | //Deal price | |
M | :95P: | :PSET | //CAVLARBA[XXX] | E1 |
M | :95R: | :DEAG | /CAVL/xxxx (Delivering agent’s CVSA depositante account) | |
M | :97A: | :SAFE | //Counterparty’s comitente sub-account in CVSA | |
M | :95P: | :SELL | //Counterparty's BIC, if different from DEAG | |
or | :95Q: | :SELL | //Counterparty’s name, if different from DEAG (if BIC does not exist) | |
M | :97A: | :SAFE | //Counterparty’s comitente sub-account in CVSA if not provided with DEAG | |
MT543 | Deliver Against Payment | Seq | ||
M | :98a: | :TRAD | //Trade date/time | B |
O | :90a: | :DEAL | //Deal price | |
M | :95P: | :PSET | //CAVLARBA[XXX] | E1 |
M | :95R: | :REAG | /CAVL/xxxx (Receiving Agent’s CVSA depositante account) | |
M | :97A: | :SAFE | //Counterparty's comitente sub-account in CVSA | |
M | :95P: | :BUYR | //Counterparty's BIC, if different from REAG | |
or | :95Q: | :BUYR | //Counterparty’s name, if different from REAG (if BIC does not exist) | |
M | :97A: | :SAFE | //Counterparty’s comitente sub-account in CVSA if not provided with REAG | |
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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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.