Restrictions to the transfer and sale of securities

Through Communication “A” 4,882, the Argentine Central Bank established temporarily that, as of December 5, 2008, financial entities can not order the transfer of securities to: (i) accounts opened in entities different from the local clearing agencies Caja de Valores S.A. (“CVSA”) or Central de Registro y Liquidación de Pasivos Públicos y Fideicomisos Financieros (“CRYL”), or (ii) accounts of depositors that are foreign clearing agencies opened at CVSA or CRYL; before 3 business days since the securities were credited in the account of the person ordering the transfer.

In addition, the Communication established temporarily that financial entities must sale securities through their crediting accounts opened at CVSA or CRYL; forbidding their sale in foreign clearing agencies and in accounts of depositors that are foreign clearing agencies opened at CVSA or CRYL. 

In consequence, the Argentine Central Bank temporary eliminated the alternatives a), b) and d) established in section 1 of the Communication “A” 2,263, and with them the possibility for financial entities to make the sale of securities through:

a) local financial entities who meet the necessary requirements to be depositaries;

b) foreign financial entities qualified as of “investment grade” according to at least two qualifying companies;

d) the following international securities entities: Cedel, Euroclear, Depositary Trust company (DTC), Midwest Securities Trust Company (MSTC), Philadelphia Trust Company (PSDTC).

After the Argentine Central Bank issued Communication “A” 4,882, the Argentine Securities Commission (Comisión Nacional de Valores or “CNV”) issued Resolution 543/2008, incorporating to section XXXI of its regulations the obligation for self-regulated entities under its supervision to complement previous regulations (Resolutions 538/2008 and 539/2008) and make intermediaries working in the entities refrain from ordering transfers of securities to be purchased in depositary entities different from the CVSA before 3 business days since the crediting of the securities in the account of the person ordering the transfer have elapsed; except when it is registered that the securities to be purchased will not be sold against foreign currency within that term.

These regulations continue implementing the restrictions established last month through Communication “A” 4,864 of the Argentine Central Bank and Resolutions 538/2008 and 539/2008 of the CNV.