CFCL Settlement services - Argentina
Pre-matching service
The table below summarises CFCL's pre-matching service for external settlement instructions, as well as the pre-matching method and start time in the market. For details of CFCL's pre-matching services, see Pre-matching services for external settlement instructions.
Service offered | Method employed | Start (Local time) | |
All securities | |||
CFCL via CBL | Immediate Release Flag available | Manual (“best efforts” basis) | On receipt of instructions |
Connectivity medium | Instruction format |
CFC Web Portal | Tick to enable the "Immediate Release" option. |
CFC via SWIFT and CFC File Transfer | Field :22F::STCO/CEDE/IREL |
Matching service
As per local market practice, instructions are matched with the local counterparty before settlement.
The following fields constitute matching criteria:
- Instruction type
- Securities amount
- Security identification
- Delivering/receiving agent
- Comitente subaccount
Matching results are reported on the day that the matching takes place.
Specific settlement rules/settlement restrictions
If an instruction is matched and a domestic counterparty has failed to deliver securities on the agreed settlement date, any party can unilaterally cancel a transaction that has not settled on the requested settlement date.
Further to the applicability of Central Bank Communication “A” 7106 and Comisión Nacional de Valores (CNV) Resolution 856 dated 16 September 2020 introducing changes and new restrictions on both the foreign exchange and securities market:
- DvP external transactions in Argentinian Pesos (ARS) are not allowed in CFCL (it has been established that transactions of securities traded and acquired offshore are not allowed to settle in ARS in the local market).
- In addition, FOP external securities transactions are allowed. If CFCL clients receive free from a local resident and then deliver free again to another local resident, no parking period is needed.
However, local residents are subject to different parking periods on the local market as established by the Comisión Nacional de Valores (CNV).
All minimum terms for holding securities are counted from the effective date of credit of the security in the local custodian’s subaccount.
Management of failed instructions
In accordance with market standard procedures, unmatched settlement instructions will be automatically cancelled by the CSD five (5) days after the value date that is, CVSA will try to settle an instruction with settlement value SD on SD, on SD+1, on SD+2, on SD+3, up to value SD+4. The recycling will be done from one value date to another. Failed transactions will be reported at the latest on the effective settlement date, providing the reason why the transaction was unsettled.
Some of the reported narratives shall be understood as follows:
Narrative | Meaning |
Error TE 46 en alta: ERROR: SUBCUENTA CTPTE.NO EXISTE EN LA BASE | Counterparty subaccount is not valid |
Error TE 36 en alta: ERROR: DEP.CTPTE.NO HABILITADO EN CUSTODIA | Counterparty account is not valid |
Error TE 50 en baja: ERROR: TRANSFERENCIA INEXISTENTE | A cancellation request which is rejected since the references number does not exist |
New issues settlement
Transactions in new issues are settled at the start of real-time processing one or two business days after the distribution date in Buenos Aires.
Procedures for domestic counterparties
This section describes the procedures for domestic counterparties of the Argentina market, which is a domestic market with a direct CSD link.
Clearstream Fund Centre‘s counterparty in CVSA shall instruct CVSA as follows:
In order to | Clearstream Fund Centre account details at CVSA | Number to indicate |
receive from/deliver to | Clearstream Fund Centre depositante account at CVSA | 8500 |
by order of/in favour of | The comitente sub-account of Clearstream Banking | 4 |
Allowed countervalue difference
There is no difference in countervalue allowed at CVSA. If a difference is detected, the parties will be informed of such difference to amend their settlement instructions accordingly.