City of Buenos Aires, 05/08/2024
HAVING SEEN File No. EX-2024-39760423- -APN-GAYM#CNV titled “Draft General Resolution s/ Normal Counted Settlement Period (T+1)”, the ruling by the Deputy Management of Market Supervision, the Agent Management and Markets, the Regulatory Deputy Management and the Legal Affairs Management, and
CONSIDERING:
That the Capital Market Law No. 26,831 (BO 28-12-12) has as its objective the development of the capital market and the regulation of the subjects and negotiable securities included in it, being the National Securities Commission (CNV) its enforcement and control authority.
That, in this framework, article 19, paragraph g), empowers the CNV to dictate the regulations that must be complied with by human and/or legal persons and entities authorized to operate by said Agency, from their registration to their deregistration. respective.
That article 1 of Law No. 26,831 establishes among its objectives and fundamental principles to promote the simplification of negotiation for users and thus achieve greater liquidity and competitiveness in order to obtain the most favorable conditions when carrying out operations and Likewise, reduce the systemic risk in the capital markets through actions and resolutions aimed at having safer markets in accordance with the best international practices, in accordance with article 19, paragraph z), of the same legal body, which establishes that The CNV has powers to evaluate and dictate regulations aimed at mitigating systemic risk situations.
That, recently, the SECURITIES AND EXCHANGE COMMISSION (SEC) readjusted Rule 15c6-1- Standard Settlement Cycle and, consequently, modified the normal or standard settlement period for transactions with negotiable securities of FORTY-EIGHT (48) hours ( T+2) at TWENTY-FOUR (24) hours (T+1), unless expressly agreed otherwise by the parties at the time of arranging the corresponding operation.
That the implementation of the new settlement period established by the SEC is initially scheduled for May 28, 2024.
That, along the same lines, the markets of Canada and Mexico are adopting measures with a view to implementing a migration schedule towards the settlement of operations according to the new T+1 deadline.
That, for its part, in accordance with the provisions of the regulations on central securities depositories of the European Union and the United Kingdom – for example, Euroclear Bank -, the settlement period for negotiable securities is a maximum of T+ 2, and settlement is currently permitted in other terms, including shorter cycles, at the discretion of the clients and under certain trading areas, segments, circumstances and conditions.
That, within the framework of its competence, the CNV must act to simplify operations within the capital market to facilitate the access of small investors to it, as well as promote their integration, always safeguarding the risks that may arise from the operations. concerted.
That, with regard to the deadlines for carrying out cash operations of negotiable securities, the current regulations contemplate the immediate settlement deadlines (T+0), TWENTY-FOUR (24) hours (T+1) and FORTY-EIGHT ( 48) hours (T+2).
That, in order to provide the Argentine capital market with greater dynamism, liquidity and depth, it is necessary to readjust the regulatory framework in relation to settlement deadlines for cash operations, in line with the deadlines established in international markets. aforementioned.
That this is issued in exercise of the powers conferred by articles 19, subsections g), h) and z), of Law No. 26,831.
Thus,
THE NATIONAL SECURITIES COMMISSION
RESOLVES:
ARTICLE 1.- Replace article 14 of Section VII of Chapter V of Title VI of the STANDARDS (NT 2013 and mod.), with the following text:
“CASH OPERATIONS.
ARTICLE 14.- In relation to cash operations, it is established that:
1) They may be carried out on negotiable fixed and/or variable income securities, and will be:
a) IN IMMEDIATE CASH: When they are agreed to be settled on the same date of the agreement (opening of guarantees, repos and counter-operations carried out by the negotiation agents in the event of default by principals on the date of settlement of operations). Operations arranged to be settled in immediate cash will be implemented through the issuance of tickets that must contain the preceding detail.
b) IN CASH TWENTY-FOUR (24) hours: When they are agreed to be settled within TWENTY-FOUR (24) business hours from the date of their agreement. The TWENTY-FOUR (24) hour cash operation will be implemented through the issuance of tickets detailing 24 HOUR CASH PURCHASE/SALE.
c) IN CASH FORTY-EIGHT (48) hours: Exclusively with respect to operations carried out on negotiable fixed-income securities, when they are agreed to be settled within FORTY-EIGHT (48) business hours counted from the date of their agreement. , to the extent that the Markets and Clearing Houses have not chosen to discontinue this modality. The FORTY-EIGHT (48) hour cash operation will be implemented through the issuance of tickets detailing CASH PURCHASE/SALE FOR 48 HOURS.
d) Short sale: Those sales operations in which, in order to comply with the delivery of the negotiable securities that are the object of said transaction, the seller must complete the purchase of the same – in any of the cash periods provided. – after the initial sale has been arranged.
e) Short sale: Those sales operations whose purpose is to sell negotiable securities obtained through securities loans arranged on the same trading day. Short sale operations must be carried out under the terms of article 2 of this Chapter. The price for the negotiation of the short sale must be equal to or higher than the price of the last operation arranged in the market, and the Markets may establish the conditions under which said rule does not apply.
2) Transactions carried out on negotiable fixed-income and/or variable-income securities to be settled in CASH TWENTY-FOUR (24) hours will be considered to be “NORMAL CASH”, except – only with respect to those operations on negotiable fixed-income securities. – when the Markets and Clearing Houses have not chosen to discontinue their CASH settlement for FORTY-EIGHT (48) hours, in which case said operations will be considered “NORMAL CASH” for the aforementioned type of securities.
3) Whatever the settlement period for cash transactions, the Agents may subordinate the fulfillment of the orders to prior accreditation of ownership of the negotiable securities or to the existence of sufficient funds in the client’s account intended to pay the amount. .
4) Regarding short sale operations, the Markets must submit to the Commission, for prior approval, the regulations from which the conditions to which said operations must be adjusted arise, and must contain at least the following guidelines: the assets eligible, quotas per instrument per agent and per client that will be admitted in the operation, as well as the short sale offer rule and the regime for dissemination to the general public of the data on short sale operations.
Likewise, the regulations must provide for mechanisms that ensure that the negotiable securities obtained on loan are available at the time of settlement of the short sale. Short sale offers must be individualized in the negotiation system. The Markets must submit daily to the Commission information on the nominal volume of short sales arranged on each date, as well as the nominal volume accumulated by each species, by each agent and client.
5) The Markets and Clearing Houses must dictate the necessary regulations to strictly comply with the provisions of this article, which must be subject to prior approval by this Commission.”
ARTICLE 2.- Incorporate as article 7 of Chapter IV of Title XVIII of the STANDARDS (NT 2013 and mod.), the following text:
“ADEQUACY OF CASH SETTLEMENT DEADLINES.
ARTICLE 7.- The Markets and Clearing Houses must adapt their regulations as provided for by General Resolution No. 1000 and present them, for prior approval by this Commission, before May 17, 2024. The new scheme for CASH settlement TWENTY-FOUR (24) hours, as well as the eventual discontinuation of the cash settlement period FORTY-EIGHT (48) hours exclusively with respect to transactions on negotiable fixed-income securities, will come into effect as provided in the respective approvals. by this Commission.”
ARTICLE 3.- This General Resolution will come into force the day after its publication in the Official Gazette of the Argentine Republic.
ARTICLE 4.- Register, communicate, publish, give to the National Directorate of the Official Registry, join the Agency’s Website www.argentina.gob.ar/cnv, add to the text of the STANDARDS (NT 2013 and mod.) and archive.
Fernando Moser – Sonia Fabiana Salvatierra – Patricia Noemi Boedo – Roberto Emilio Silva
and. 05/09/2024 No. 27869/24 v. 05/09/2024
