Governing

Argentina: Update : Superseded

Settlement | Argentina

Reference

Code
A15069
Service level
CBL
Last Updated
31.03.2015
This page contains Governing Information.

Note: This Announcement has been superseded by Announcement A15070, which contains new and updated information.

Further to our announcement A15066 of 30 March 2015, Clearstream Banking1 wishes to provide an update on the situation.

The legal status of assets deposited with Citibank Argentina and by it with Caja de Valores is the subject of some uncertainty following the resolution N°17.634/15 of the Comisión Nacional de Valores (CNV - National Securities Commission - local SEC) of 27 March 2015. Citibank Argentina, Caja de Valores and  the Argentine authorities are currently meeting to clarify this and to provide guidance to Citibank's custody customers on operating and transitional arrangements. The status of these deliberations is such that Clearstream Banking has not yet received the information needed to ensure compliance with its regulatory obligations as a Securities Settlement System.

However, Clearstream Banking is seeking written confirmation from Caja de Valores that the legal status of the sub-account maintained on its behalf by Citibank Argentina remains unchanged pending transitional measures.  When such confirmation is received in the form and substance anticipated, it will enable Clearstream Banking to re-open internal settlement for all securities in the Argentine market except the Affected Securities.

In relation to external settlement, Caja de Valores has indicated to Clearstream Banking that it may continue to receive instructions transmitted by Citibank Argentina. Clearstream Banking is urgently seeking confirmation from Citibank Argentina as a pre-requesite to re-open external settlement for any securities in the Argentine market except the Affected Securities. Customers will be advised as soon as this understanding is confirmed.

The Affected Securities are:

ISINCommon CodeSecurity Name/Description
ARARGE03E097020948850Republic of Argentina USD 2.5% 2038
ARARGE03E113020949031Republic of Argentina USD 8.28% 2033 
ARARGE03G704050542505Republic of Argentina USD 2.5% 2038
ARARGE03G688050542661Republic of Argentina USD 5.77% 2033
ARARGE03E154020978961      Republic of Argentina USD FRN GDP 2035

This change will remain in effect until further notice.

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 AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and 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.