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In brief

On 2 May 2023, the Argentine Securities and Exchange Commission issued General Resolution No. 959/2023 in order to restrict the sale of marketable securities with settlement in foreign currency for parties that hold positions in surety bonds and/or repos, regardless of the settlement currency. Likewise, settlement and clearing agents are prohibited from granting financing to the transactions mentioned above. Finally, the term of permanence in portfolio for the sale of marketable securities with settlement in foreign currency in foreign jurisdiction is modified.


In focus

On 2 May 2023, the Argentine Securities and Exchange Commission (CNV, after its Spanish acronym) issued General Resolution No. 959/2023 (“Resolution“) in order to restrict the sale of marketable securities with settlement in foreign currency to parties that hold positions in bonds and/or swaps, regardless of the settlement currency. Likewise, settlement and clearing agents are prohibited from granting financing for the transactions mentioned above. Finally, the term of permanence in the portfolio for the sale of marketable securities with settlement in foreign currency in a foreign jurisdiction is modified.
In this regard, the Resolution provides the following:

i. To carry out sale transactions of marketable securities with settlement in foreign currency and in foreign jurisdiction, the following minimum terms for holding such marketable securities in portfolio must be observed: (a) one business day in the case of marketable securities issued under Argentine law; and (b) three business days in the case of marketable securities issued under foreign law. Both terms are counted as from the accreditation of the marketable securities at the Central Depository Agent of Negotiable Securities.

ii. In order to carry out sale transactions of marketable securities with settlement in foreign currency and in local jurisdiction, the minimum holding period to be observed shall be one business day, to be computed in the same manner as provided in (i).

iii. For the transfer of marketable securities acquired with settlement in local currency to foreign depositories, the following minimum holding periods of such marketable securities in the portfolio must be observed: (a) one business day in the case of marketable securities issued under Argentine law; and (b) three business days in the case of marketable securities issued under foreign law, both terms counted as from their crediting at the Central Depository Agent of Negotiable Securities, except in those cases in which the crediting at such agency is the result of the primary placement of marketable securities issued by the National Treasury or in the case of Argentine shares and/or Argentine Certificates of Deposit (Certificados de Depósito Argentinos).

iv. Settlement agents, clearing Agents and trading agents shall not be allowed to execute or settle sale transactions of negotiable securities with settlement in foreign currency, both in local and foreign jurisdictions, corresponding to clients that hold positions in surety bonds and/or repos, regardless of the settlement currency.

v. Likewise, the agents mentioned in (iv): (a) may under no circumstances grant financing to obtain negotiable securities that will be the object of the sale transactions described in (iv); and (b) shall require from each of the ordering clients a sworn statement expressly stating that they do not hold any positions in surety bonds and/or repos, regardless of the settlement currency, as owners and/or co-owners, and in any agent registered with the CNV, and that they have not obtained any type of financing, whether of funds and/or marketable securities.

vi. With respect to the purchase and sale of fixed-income marketable securities denominated and payable in US dollars issued by the Argentine Republic by the sub-accounts covered by the provisions of Section 6 of Chapter V of Title VI of the CNV Rules and that are also qualified investors pursuant to Section 12 of Chapter VI of Title II of the CNV Rules, the following must be observed: (a) for the aggregate of such marketable securities, the number of nominal securities sold with settlement in foreign currency and in local jurisdiction may not exceed the number of nominal securities purchased with settlement in such currency and jurisdiction, on the same trading day and for each principal sub-account; and (b) for the aggregate of such marketable securities, the number of nominal securities sold with settlement in foreign currency and in foreign jurisdiction may not exceed the number of nominal securities purchased with settlement in such currency and jurisdiction on the same trading day and for each principal sub-account.

The Resolution became effective on 2 May 2023.

Click here to read the Spanish version.

Author

Francisco José Fernández Rostello is a partner and member of the Firm’s Banking & Finance Practice Group in Buenos Aires. He has worked for the International Swaps and Derivatives Association and for Société Générale, New York Branch. He is knowledgeable on matters related to issuance of debt, derivatives transactions, local and cross-border financing, and securities transactions.

Author

Gabriel Gomez-Giglio is partner at Baker McKenzie’s Buenos Aires office, chair of the Latin America Banking & Finance Practice of Baker McKenzie and a member of the Global Steering Committee of the Firm’s Financial Institutions Industry Group. He advises clients on a variety of general commercial issues. His practice focuses on the areas of transactional and regulatory matters, including but not limited to multinational financial transactions, commercial agreements and mergers and acquisitions. Gabriel is a member of the Board and Adjunct Professor of Law at Universidad Torcuato Di Tella and a visiting professor with the Centre for Commercial Law Studies, Queen Mary College, University of London.

Author

Juana Allende is an Associate in Baker McKenzie, Buenos Aires office.

Author

Jeronimo Argonz is an Associate in Baker McKenzie, Buenos Aires office.

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