Argentine Securities Commission Reinstates Quantitative Restrictions for Certain Blue-Chip Swap Transactions and Restricts Arbitrages

The Argentine Securities Commission (CNV) passed Resolutions No. 969 and 971 on August 3 and 13, 2023, respectively. Through these, the CNV implemented new restrictions to control blue-chip swap transactions.

Resolution No. 969 established that, to execute purchase orders with foreign currency of fixed income securities issued by Argentina, nominated  and payable in USD, through the segment of concurrency of offers with price-time priority (PPT Segment), with immediate settlement or settlement within one business day; broker-dealers and settlement agents must require the client to submit an affidavit stating they have not sold such securities in foreign currency in the last 15 calendar days through the PPT Segment, and that they commit to not sell them in foreign currency through the PPT Segment in the following 15 calendar days.

Meanwhile, through Resolution No. 971, the CNV reinstated the quantitative weekly restriction of 100,000 nominals applicable to the sale in foreign currency of fixed income securities issued by Argentina, nominated and payable in USD, through the PPT Segment (approximately, a range from USD 30,000 to USD 40,000). This restriction had already been implemented in 2021 by means of Resolution No. 878 (https://www.marval.com/publicacion/reduccion-del-parking-para-las-operaciones-de-ccl-13896&lang=en) and it was repealed until Resolution No. 971 reinstated it.