In depth
On 6 February 2024, the Argentine National Securities Commission (Comisión Nacional de Valores (CNV)) issued General Resolution No. 990/2024 ("Resolution") to modify the current restrictions on trading with marketable securities when using Bonds for the Reconstruction of a Free Argentina (BOPREAL). In summary, the Resolution establishes the following:
(i) The restriction on carrying out sales transactions with marketable securities that are settled in foreign currency while holding positions in surety bonds and/or swaps shall not apply with respect to the sale, in a foreign jurisdiction, of BOPREAL when (a) they were previously acquired in a placement or primary bidding process and (b) the sale transaction is performed for up to the total nominal value of the marketable securities thus subscribed.
(ii) Broker-dealers may — subject to compliance with the other requirements established in the CNV's regulations — enter into sales transactions with securities that are settled in foreign currency for the following clients:
(1) Clients from abroad that have an Identification Code (Clave de Identificación) or Foreign Investors Code (Clave de Inversores del Exterior) and that are not intermediaries and/or similar entities when they carry out these transactions for their own portfolio and with their own funds up to a new daily limit of ARS 200 million (previously, the limit was ARS 100 million).
(2) Clients from abroad that are intermediaries and/or similar entities when they carry out these transactions up to a new daily limit of ARS 200 million (previously, the limit was ARS 100 million) on the account and order of Argentine local third-party customers (applying the limit to each of them individually) or when they operate for their own account and with their own funds.
(3) Clients who have a Unique Taxpayer Identification Code (Clave Única de Identificación Tributaria) and act on behalf of third parties when they carry out these transactions for up to a new daily limit of ARS 200 million (previously, the limit was ARS 100 million) applicable to all third parties (In this case, they may continue to operate above the daily threshold of ARS 200 million when they act on their own account and with their own funds and comply with the information duties required by the CNV's regulations).
(iii) The limits set out in (ii) shall not be taken into account when customers request to perform (a) transfers of BOPREAL to depository entities abroad or (b) sales in the country of the BOPREAL that are settled in foreign currency (provided that requirements (a) and (b) of item (i) above are complied with). This exception will be applied retroactively to BOPREAL transactions carried out prior to the entry into force of the Resolution that comply with requirements (a) and (b) of item (i) above.
The Resolution became effective on 6 February 2024.
Click here to read the Spanish version.
