Amendment to Public Trade Regime of Electronic Credit Invoices Issued by Micro, Small and Medium-sized Enterprises

On July 23, 2020, the Argentine Securities and Exchange Commission (the "CNV" after its acronym in Spanish) issued Resolution No. 850 (the "Resolution"), which amends the regulations applicable to the Productive Financing Law No. 27, 440 in connection with the procedures for the negotiation and transmission of electronic credit invoices issued by  micro, small and medium-sized enterprises (the “SMEs” and the "Invoices"), as created by Resolution No. 780. The Resolution replaces Section XX of Chapter V of Title VI of the CNV’s Rules (the "Rules").

As was the case with the previous regulation, the Resolution delegates to the Markets, under the jurisdiction of the CNV, the power to enact regulations for the negotiation of the Invoices. In addition to requiring that the Markets' regulations include as a minimum that trading be carried under an offer-attendance system (sistema de concurrencia de ofertas) that ensures price-time priority, and that the Invoices had been deposited in a Depository Agent (a "DA"), the Resolution incorporates the requirement that the Markets set forth the applicable requirements according to the relevant trading segment.

In order to trade the Invoices in the Markets authorized by the CNV, the Invoice must be deposited in a principal account of a DA.

If the Markets hire computer tools or systems that facilitate the performance of factoring, assignment, discount and/or invoice negotiation transactions, the Invoices may be deposited with a DA and/or an Escrow, Registrar and Payment Agent (a "ER&PA"), as long as financial entities, as well as non-financial credit providers, participate as buyers, acquirers, assignees or endorsers.

The Invoices may be transferred to a DA and/or an ER&PA to be negotiated under any authorized modality in which a Market authorized by the CNV does not participate.

Regarding the registration of the Invoices, the Resolution establishes that the DA and the ER&PA must control that the Invoices are registered with the Argentine Tax Authority.

The settlement of the Invoices  can be done through a DA or an ER&PA, as long as the relevant Market hires computer tools or systems to perform the transaction or the Invoice is traded under a modality in which the Market does not participate.