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point by point, what does the resolution of the CNV say

One day after the legislative elections, the Government decided to tighten even more the exchange restrictions than imposed on the financial market. After the market closed, the National Securities Commission (CNV) sent a statement in which it anticipated a new limit on operations with AL30 bonds, which investors use as a way to get dollars in cash with settlement.

The measure was published in the Official Gazette on Tuesday. General Resolution 911/2021 establishes a modification in the way of calculating the caps of 50,000 nominal values ​​for public securities in foreign currency.

The measure was made official this Tuesday in the Official Gazette, through General Resolution 911/2021.

Point by point, what does the text of the Resolution say:

HAVING SEEN File No. EX-2020-34010819- -APN-GAL # CNV, entitled “PROPOSED RESOLUTION S / DETERMINATION OF PERMANENCE PERIOD FOR THE LIQUIDATION OF PUBLIC SECURITIES”, as ruled by the Agents and Markets Management and the Management of Legal Matters, and CONSIDERING: That the NATIONAL EXECUTIVE BRANCH, through Necessity and Urgency Decrees N ° 596/2019 (BO 08/28/2019) and N ° 609/2019 (BO 09/01/2019), established a set of provisions to regulate the exchange regime with greater intensity and, thus, strengthen the normal functioning of the economy, contribute to a prudent administration of the exchange market, reduce the volatility of financial variables and contain the impact of fluctuations in exchange rates. financial flows on the real economy.

That, within this framework, certain rules were established related to exports of goods and services, with transfers abroad and with access to the exchange market, in accordance with the regulations that the CENTRAL BANK OF THE ARGENTINE REPUBLIC (BCRA) dictates to that effect. , further empowering said monetary authority to establish regulations that prevent practices and operations that seek to circumvent, through public titles or other instruments, the provisions of the aforementioned measures.

That, in due course, the BCRA requested the NATIONAL SECURITIES COMMISSION (CNV), through Note NO-2019-00196323-GDEBCRA-P # BCRA and Note of the Presidency No. 39, to implement, within the scope of its competence, aligned measures with what is regulated by said entity, in order to avoid elusive practices and operations detected in the exercise of its control powers.

That, based on this, the CNV established through General Resolutions N ° 808 (BO 09/13/2019), N ° 810 (BO 02/10/2019), N ° 841 (BO 05/26/2020), N ° 843 (BO 06/22/2020), N ° 856 (BO 09/16/2020), N ° 862 (BO 10/20/2020), N ° 871 (BO 11/26/2020), N ° 878 (BO 12/01/2021) and N ° 895 (BO 12/07/2021), attentive to the exceptional circumstances of public domain and on a temporary basis, within the scope of its competence and in line with the provisions of article 3 ° of Decree No. 609/19, various measures in order to avoid such elusive practices and operations, reduce the volatility of financial variables and contain the impact of fluctuations in financial flows on the real economy.

That, subsequently, the BCRA, through Presidency Note No. 67, indicated that, in addition to the measures adopted within the framework of the powers granted by the Necessity and Urgency Decree No. 609/19, in order to reduce volatility of financial variables and contain the impact of fluctuations in financial flows on the normal functioning of the real economy, said entity has carried out interventions in the exchange market and debt securities markets.

That, in the framework of the recent evolution of the exchange market, it indicates that a growing intervention by the BCRA has become necessary and, to a strong extent, such intervention has been associated with the operations implemented in the capital market through the purchase simultaneous sale of negotiable securities.

That, by virtue of the foregoing, said institution deemed it necessary for the CNV to implement new measures within the scope of its competence.

That, within this framework, General Resolution No. 907 (BO 6/10/2021) was issued, through which measures were adopted aimed at reducing the volume of demand for foreign currency in local jurisdiction on negotiable securities denominated in US dollars. and issued under local law.

That, in this instance, the BCRA, through Presidency Note No. 78, within the framework of the recent evolution of the foreign exchange market, ratifies what was duly expressed in Presidency Note No. 67 of October 5, 2021, noting the The need for the CNV to implement measures, within the scope of its competence, in order to limit such operations, as widely as possible, encompassing the different options offered by the market, considering at least that the measures already adopted are complemented by extending the quantitative limit that is currently in force for operations in US currency with negotiable securities denominated in US dollars and issued under local law in the priority price time segment.

That, by virtue of the aforementioned, in order to provide greater transparency to the market and reduce the referred need for intervention by the BCRA, it is appropriate to establish, in the segment of concurrence of offers with priority price time, of sale of negotiable securities of fixed income nominated and payable in United States dollars issued by the Argentine Republic under local law, for all the principal subaccounts and said negotiable securities, which at the end of each calendar week it must be observed that the total sales with settlement in foreign currency may not exceed FIFTY THOUSAND (50,000) nominal; operating this limit for each constituent subaccount as well as for the set of constituent subaccounts owned or co-owned by the same subject and for all operations with settlement in foreign currency.

That article 19, subsection h), of Law No. 26,831 stipulates as a function of the CNV to establish the provisions that are necessary to complement those that arise from the different laws and decrees, as well as to resolve unforeseen cases and interpret the regulations there included within the prevailing economic context.

That, for its part, subsection y) of the aforementioned article 19 empowers the CNV to dictate regulations aimed at promoting the transparency and integrity of the capital markets, and the markets must at all times maintain their regulations appropriate to the regulations issued by the CNV.

That, additionally, it is necessary to highlight the extraordinary and transitory nature of the provisions that are hereby adopted, remaining in force until supervening events make it advisable to review the measure and / or until the causes that determined its adoption disappear.

That this is issued in exercise of the powers conferred by article 19, subsections g), h) and y), of Law No. 26,831.

Therefore, THE NATIONAL SECURITIES COMMISSION RESOLVES: ARTICLE 1 .- Replace Article 6 of Chapter V of Title XVIII “TRANSITIONAL PROVISIONS” of the RULES (NT 2013 and mod.), By the following text: “CONCERTATION OF OPERATIONS WITH SETTLEMENT IN FOREIGN CURRENCY.

ARTICLE 6.- In operations, in the segment of concurrence of offers with priority price time, of sale of negotiable fixed income securities nominated and payable in United States dollars issued by the Argentine Republic under Local Law, and for all of all the principal subaccounts and said negotiable securities, at the close of each calendar week it must be observed that the total sales with settlement in foreign currency may not exceed FIFTY THOUSAND (50,000) nominal; operating this limit for each constituent subaccount as well as for the set of constituent subaccounts owned or co-owned by the same subject and for all operations with settlement in foreign currency.

The Settlement and Clearing Agents and the Trading Agents must verify compliance with the limit per principal subaccount.

The National Securities Commission will verify compliance with said limit for the set of constituent subaccounts of which the same person is the owner or joint owner ”.

ARTICLE 2.- This General Resolution will enter into force on the same day of its publication in the Official Gazette of the Argentine Republic.

ARTICLE 3.- Register, communicate, publish, go 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 file.

Mónica Alejandra Erpen – Martin Alberto Breinlinger – Sebastián Negri – Adrián Esteban Cosentino e. 11/16/2021 N ° 87958/21 v. 11/16/2021

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HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

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