Adjustments to the Mandatory Holding Period for the Sale and Transfer of Securities

On June 22, 2020, the National Securities Commission (the “NSC”) enacted the General Resolution N° 843, in order to deepen the monitoring of operations with securities carried out abroad and in regulated markets, as well as to complement the measures established through the General Resolution N° 841.

In the recitals of the Resolution N°843, the NSC states that after the issuance of General Resolution N° 841 the Argentine Central Bank (the “Central Bank”) ”has ascertained the continuity of operations instrumented through the purchase and sale of securities that have the objective of avoiding restrictions to the access to the exchange market for the purchase of foreign currency" established by the Central Bank, and that, due to this, it is necessary to adopt the present measures in order to avoid these "elusive practices and operations".

Minimum holding period 

A minimum holding period of five working days is established so that the securities accredited in Caja de Valores (i.e., securities depository), transferred from foreign depositaries, can be sold against foreign currency in the local market. Said period shall be calculated from the time of accreditation in the sub-account(s) in a Caja de Valores (i.e., securities depository).

Arrangement and sale of securities against Argentine pesos

The arrangement and sale of securities admitted to the listing and/or trading in Argentina against Argentine pesos carried out by agents under the NSC’s supervision may only be carried out in authorized markets and/or Clearing Houses registered with the NSC. 

Registered Agent’s Portfolios. Netting of purchases and sales

The NSC establishes that if in: (i) the sale of securities against foreign currency accredited abroad (so called “Contado con Liquidación” operations), and (ii) the transactions in foreign markets carried out by agents under the NSC’s supervision, as customers, the amount of nominal value sold for a certain security exceeds the amount purchased, the agent must apply at least 90% of the surplus to purchases of securities against foreign currency in the regulated local market and/or in foreign markets as a customer.

The agents must have a weekly detail of the compensations made with purchases in foreign markets to be submitted to the NSC in the event of an audit.

Finally, it is important to clarify that these measures are of an extraordinary and transitory nature.

This report should not be considered as legal or any other type of advice by Allende & Brea or as including all the subjects of the matters described herein. 

For further information on this topic please contact Carlos M. Melhem and Jorge I. Mayora