Securities Trades in Exchange for Foreign Currency

On December 13, 2023, by means of General Resolution 988/2023, the National Securities Commission (“CNV”) amended and partially repealed certain regulations applying to securities trades in exchange for foreign currency.

The main amendments are summarized below:

Minimum Securities Holding Period (parking)

• Foreign currency settlement: All sales of securities in exchange for foreign currency (whether in Argentina or abroad), irrespective of their governing law, are now subject to the same minimum securities holding period (parking), which has been reduced to 1 business day. No such parking period applies to sales in exchange for foreign currency (in Argentina or abroad) of securities that were originally purchased with foreign currency (in Argentina or abroad), which means securities purchased with USD in Argentina (MEP) can now be immediately sold in exchange for USD abroad (cable).

• Transfers to Euroclear: All transfers of securities from local depositary to offshore depositaries, irrespective of their governing law, are now subject to the same minimum securities holding period (parking), which has been reduced to 1 business day. Existing exceptions continue to apply (i.e., securities resulting from the initial placement of securities issued by the National Treasury and shares or CEDEARs traded in local markets).
• Transfers from Euroclear and subsequent sale for foreign currency: All sales of securities in exchange for foreign currency (whether in Argentina or abroad), irrespective of their governing law, are now subject to the same minimum securities holding period (parking), which has been reduced to 1 business day.

Offshore Securities Trades Reporting Obligation

Local brokers and other agents subject to CNV oversight are no longer required to inform local markets and the CNV of the trades performed by them, as clients, in offshore markets, whether for their own portfolio or acting on behalf of their clients.

Trades in the PPT Segment and Bilateral Segment

The purchase and sale of certain securities in exchange for foreign currency or the transfer thereof to and from offshore depositaries are no longer subject to the seller (i) not having sold Argentine sovereign bonds in exchange for foreign currency in the price-time priority segment (PPT) in the preceding 30 days, and (ii) undertaking not to make such sales of Argentine sovereign bonds in the following 30 days.

Weekly Limit for PPT Sales of Argentine Sovereign Bonds in Exchange for USD

The sale in the price-time priority segment (PPT) of USD-denominated and payable Argentine sovereign bonds, in exchange for foreign currency, is no longer subject to a weekly maximum of 100,000 nominal value.

You can access RG 988/2023 at the following link: https://www.argentina.gob.ar/cnv

For any concerns or questions, please contact:

FX Team fxconsultas@bruchoufunes.com