Argentine Securities Commission Modifies Regulation on Securities Transactions (Blue-Chip Swap)

On February 5, 2024, through General Resolution 990, the Argentine Securities Commission (CNV) amended and repealed requirements and limits for the purchase and sale of securities with settlement in foreign currency, making certain restrictions more flexible.

The Resolution exempts the ‘Bonos para la Reconstrucción de una Argentina Libre’ (BOPREAL) bonds, issued by the Argentine Central Bank (BCRA) from complying with the minimum holding period for transfers to foreign depositories of such marketable securities acquired with settlement in local currency. For further information on the BOPREAL, see this article [New USD Denominated Bond for Importers].

The limitation on positions taken with outstanding REPOs or securities financings regarding the sale, in foreign jurisdiction, of BOPREALs with settlement in foreign currency will not apply if they have been acquired in a primary bidding process, up to the total nominal value of the species thus subscribed.

On the other hand, the Resolution completely eliminated the regulations that limited the arrangement and settlement of transactions with fixed-income denominated securities and with settlement in foreign currency issued by the Argentine Republic and with Argentine Certificates of Deposit (CEDEAR), applicable to proprietary trading for broker-dealers that are qualified investors.

Further, the Resolution standardizes the conditions and maximum daily amounts of transactions for those individuals or legal entities operating with CDI, CIE, or CUIT, raising the daily limit to ARS 200 million for transactions and transfers of securities abroad. It also exempts BOPREALs from the limits and prior information regime required both for issuing transfers to depositary entities abroad and for arranging their sale in Argentina with settlement in foreign currency, if the marketable securities have been acquired in a primary bidding process and for up to the total nominal value subscribed.

Finally, the Resolution eliminates the exception that applied for transferring securities issued by residents to depositary entities abroad to those individuals or legal entities.