3-Day Parking for Blue Chip Swap Transactions

The Argentine Securities and Exchange Commission (“CNV” after its acronym in Spanish) issued General Resolution No. 862 on October 19, 2020, which shortens and standardizes the minimum holding period (or parking) of Blue Chip Swap transactions for three (3) business days as of the date on which the securities were credited in Caja de Valores S.A. (Central Securities Depository Agent), as a prerequisite for:

(i) the sale of securities against foreign currencies;

(ii) their transfer to foreign depositories; and

(iii) their sale when they have been transferred from foreign depositories.

The parking period exception applicable to Blue Chip Swap transactions with shares or CEDEARs traded in CNV-regulated markets has been extended to transfers of securities to foreign depositories. That exception comes from a prior CNV General Resolution, GR No. 856, governing the transfer of securities from foreign depositories.

Lastly, CNV GR No. 862  relaxed the restrictions on the negotiation and settlement of transactions by agents and other persons registered with the CNV as proprietors, removing the requirement that those transactions be executed solely through authorized markets or clearing houses subject to regulatory oversight by a regulator with which the CNV has a signed Memorandum of Understanding, thus enabling once again the execution of Over-The-Counter (OTC) transactions.