The new regulation expands the limitations applicable to registered agents, restricting the sale in Renminbi of certain bonds issued by Argentina.
On June 22, 2023, the Argentine Securities Commission (CNV) issued General Resolution No. 965, expanding the restrictions established by General Resolutions No. 959 and No. 962. These had reinstated certain limitations to proprietary trading transactions of agents registered before the CNV, either settled locally or abroad, establishing that the sale in USD of bonds denominated and payable in USD issued by Argentina cannot exceed the amount of bonds purchased in such currency. For more information regarding the limitations in General Resolution No. 962, please see the following link.
The Resolution thus states that agents registered before the CNV must not sell in CNY bonds denominated and payable in USD issued by Argentina in an amount larger than the bonds acquired in foreign currency, excluding from the count those bonds purchased in USD that were accounted for the sales in USD.
These restrictions must be observed for each investment account, settlement date, and settlement term and, additionally, regarding the sales of said bonds in USD, considering whether the transactions are settled locally and abroad.
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.