The Argentine Securities and Foreign-currency Electronic Exchange Published New Information on Registration of Derivative and Repos for Netting and Reporting Purposes

Following the Argentine Securities and Exchange Commission (“CNV”) General Resolution No. 775 (please see CNV: Registration of Derivative and Repos for Netting and Reporting Purposes), Mercado Abierto Electrónico (“MAE”), one of the largest securities market in Argentina, issued Circular No. 171/2018 by which it informed its registered agents of the procedure to be followed for the registration of derivative and repurchase transactions for netting and reporting purposes, together with a guide on operational matters to carry out said registrations (the “Resolutions”).

1. Registration Procedure

The Resolutions state that the registration of agreements must be made through MAE’s website (www.mae.com.ar). Any party that wants to register its derivatives and repo transactions will need to request MAE to assign a username and password to access the system through the filing of the form included as an Annex to Circular No. 171/2018.

MAE’s registration system is available to the agents subject to CNV Resolution No. 775 and other agents under the CNV’s regulations, and also to any other individual or entity that has an interest in registering agreements to which it is a party with MAE.

For the registration of the agreements, the persons and entities mentioned in the preceding paragraph must access the system through MAE’s website and complete a form by which it will provide the corresponding information for each type of OTC derivative or repo agreement, and its underlying asset.

MAE will register the informed operation and will issue and deliver by email a registration record for both the party that registers the agreement (the “Reporting Party”) and its counterparty (the “Counterparty). The registration record will have a registration number, and will contain the relevant information for the registered transaction, such as type of agreement, term, underlying asset, settlement date, applicable law and other information. Similarly, any party to an agreement may request for MAE to issue a certificate where it is stated that, pursuant to Article 10 bis, Section V, Chapter V of Title VI of the CNV Rules, and the Capital Markets and Productive Financing Laws, the agreement has been registered with MAE.

2. Rules for Registration

If both parties to an agreement that will be registered according to CNV Resolution 775 are subject to the CNV’s control, the registration must be completed by the Buyer of the contract or, in the case of SWAP agreements, the Seller will be the Reporting Party.

If only one of the entities or Agents is subject to CNV’s control, then said entity will be the Reporting Party.

Finally, if neither of the parties is subject to CNV’s control, then they will have to appoint one of them to be the Reporting Party.

3. Amendment to Registered Information

Any amendments or cancellation to the registered information must be informed by the original Reporting Party, with its own username and password, and using the agreement registration number.