BOPREAL: Argentine Securities Commission Eases Restrictions on Blue-Chip Swaps

On April 3, 2024, the Argentine Securities Commission (CNV) issued General Resolution 995, easing the regulation for Blue-Chip Swap transactions used to cover the discount in the secondary market of the Bonos para la Reconstrucción de una Argentina Libre (BOPREAL) bonds.

These modifications apply to sale transactions of other securities with settlement in foreign currency, when the market value of these transactions does not exceed the difference between the value obtained from the sale with settlement in foreign currency abroad of the BOPREAL bonds acquired in primary subscription, if lower, and their nominal value.

As of April 1, 2024, the amendments exempt these securities from: 

1.    complying with the minimum holding period (‘parking´) of 1 business day to transfer the securities to foreign depositary entities,
2.    the limitation on positions taken in outstanding REPOs or securities financings, or any type of financing granted through capital markets, 
3.    the information system required to carry out such transfers or to arrange the sale of negotiable securities with foreign currency settlement abroad (NY Dollars), both in transactions of customers with a Taxpayer Identification Number.