Argentina: Parking periods in the local market applicable to the transfer of securities to international depositaries (ICSDs) and new financing restrictions - Further information

16.05.2023

Clearstream Bankinginforms clients that the National Securities Commission (CNV) published Resolution 959/2023 on 28 April 2023.

Effective

immediately

Clients should be aware that parking periods for transferring securities in the local market free of payment to international depositaries (ICSDs) were modified and additional restrictions to the sale of securities in foreign currency have been implemented.

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

Note: Local brokers and custodians are responsible for holding the securities during the parking period. Clients should refer to the attached CNV Resolution for the full report.

Changes in parking periods in the local market for transfers to ICSDs (from a local market perspective)

One day parking period for securities bought in ARS

Securities issued under Argentine Law are subject to a one-business-day parking period before the local participant can transfer the securities to an ICSD.

Three day parking period for securities bought in ARS

Securities issued under foreign law are subject to a three-business-day parking period before the local participant can transfer the securities to an ICSD.

In addition to the parking period modifications, the CNV resolution also determines restrictions which implies that when Beneficial Owners have guaranteed loans and repos operations, they will not be able to settle any transaction against USD (offshore and onshore). For reference, local brokers and custodians are also responsible for allowing or not allowing these settlement transactions.

Impact on clients

External against payment transactions in ARS remain suspended until further clarification from regulators.

Alternatively, Clearstream Banking clients can settle external transactions on a free of payment basis.

Internal and Bridge transactions are open for settlement in ARS.

Further information

For further information, clients 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 clients 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.