New Regulations Applicable to Securities Transactions

Through General Resolution No. 959, issued on April 28, 2023, the Argentine Securities Commission (CNV) replaced the provisions of General Resolution No. 957, keeping the text in it, and expanding the temporary regulations applicable to certain securities transactions. General Resolution No. 957, issued on April 10, 2023, had modified the minimum holding period (parking) applicable to selling securities in foreign currencies and foreign markets (against NY Dollars).

The main modifications introduced by the Resolutions are:

1. The minimum holding period for selling securities abroad settled in foreign currency, previously of two business days, is now one business day for securities issued under Argentinian law (AL or Bonar bonds), and three business days for securities issued under foreign law (GD or Global bonds). In each case, counted as of the date the securities were credited in the Central Securities Depository Agent.

2. The minimum holding periods for transfers abroad of securities acquired with ARS, previously two business days, is now one business day for securities issued under Argentinian law, and three business days for securities issued under foreign law (GD or Global bonds). In each case, counted as of the date the securities were credited in the Central Securities Depository Agent, except for IPOs of securities issued by the National Treasury, stocks and/or Argentine certificates of deposit (‘CEDEAR’, after its acronym in Spanish) traded in CNV regulated markets.
3. Broker-dealers must refrain from selling securities settled in foreign currency if this was ordered by clients with outstanding REPOs or securities financings. Further, broker-dealers must refrain from financing their clients the purchase of securities that will be then sold in foreign currency whilst the financing is outstanding. Broker-dealers  must also require from their clients a sworn statement declaring that they do not hold any REPOs or securities financings, or any outstanding financing granted either in cash or in securities.

The minimum holding period for the sale of securities settled in foreign currency in local markets (local Dollars) remains one business day.

It is worth mentioning that the aforementioned parking periods do not apply to purchasing securities settled in foreign currency.

Finally, the Resolution reinstated the restriction applicable to proprietary trading for broker-dealers in the price and time priority segment relating to the neutrality of purchase-sale transactions of sovereign bonds denominated in dollars, respectively for both the transactions settled locally and abroad, for each business day and each trading subaccount.