CNV Proposes Guidelines for Markets to Enter into Agreements with IT Resources

On June 2nd, 2022, the Argentine Securities Commission ("CNV", after its acronym in Spanish) issued General Resolution No. 933 by means of which it submitted for public consultation a draft resolution (the "Draft Resolution") to establish the guidelines under which the markets under its jurisdiction may enter into agreements with information technology resources (the “IT Resources”) that facilitate the performance of factoring, assignment, discount and/or trading of electronic credit invoices issued by  small and medium enterprises (the “SMEs”).

Accordingly, the Draft Resolution proposes guidelines for these IT Resources, establishing the following as outstanding matters:

- Markets must inform through the Financial Information Highway the date of execution, term, identification of the IT Resources and contractual terms of the agreement within two days of their execution;

- The performance of the IT Resources is limited exclusively to capital markets as regulated by CNV;

- Markets must regulate the reporting regime for the IT Resources, which must also be approved by CNV;

- Prior to the negotiation of electronic credit invoices, the SMEs that interact with IT Resources must execute an agreement to open an account with a broker-dealer;

- The custody and payment of electronic credit invoices negotiated through these IT Resources at maturity must be made through a central securities depository agent.

Furthermore, the Draft Resolution proposes the determination of the permissible activities for markets, clearing agents, depository agents and custody, registry and payment agents, in order to establish the scope of their respective enterprises and the supervision powers exercised by CNV.

Those actions are limited exclusively to the capital market, and the agents may not act in areas and/or with subjects and/or with instruments that, by their nature and conditions, require previous authorization by CNV and have not obtained it, excluding the activities relating to the registry of bilateral swaps and derivative contracts.

Finally, if the proposal is approved, the reporting regime of these agents will be updated.