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Argentina CSD
Alejandro Berney
CEO
Caja de Valores S.A.
25 de Mayo 362,
Ciudad de Buenos Aires
Market overview
 Argentine market in process of opening up
– New FX regulations recently introduced
 120 day restriction with 0% reserve and no limit on repatriation of portfolio investments
 Maintains unrestricted repatriation on dividends and income of Federal Debt
– BCRA made some monetary instruments (LEBACS & NOBACS) available for foreign investors
– Regulators current priorities: fixing macro imbalances and reducing unnecessary controls.
– Change in attitude towards foreign investment – with caution on short term flows
 Integration is currently all about local markets
– DMA introduced last year to allow broker dealers to trade through different markets
 Rofex – Merval / MAE – MATBA / Merval – MAV
– Integration with regional markets secondary to trade agreements
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Key Initiatives
 Implementation of new capital markets law
– Significant number of new relationships and closures of previous entities
– More changes expected: new instruments / new inter-market connections
 Corporate Actions
– Conclude automation of new local and international corporate actions services
– Medium term: optimize end-to-end process from Issuer to Investor
 Core IT infrastructure replacement
– Finalize implementation of Millennium Exchange (LSEs stock exchange platform)
– Begin project for replacing CCP and Custody core systems
– Continue elimination of paper based instructions in short term
 Cybersecurity
– Doubling our information security organization
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Risk
 Continuity of Business
– Robust technology disaster recovery with 2 hot-back ups and dedicated fiber optics
– 3 back-up sites for operations: Alem, Sarmiento, Reconquista – may be too close
– In process of rolling out virtual desktop & VPN for key employees of critical processes
 Asset segregation and recovery in case of insolvency/bankruptcy
– Account structure: Depositante – Comitente
 Comitente account is beneficial holder for local clients, can be omnibus for non-residents
– Bankruptcy of local Depositante:
 Market or Central Bank takes control of Depositante Account
 Transfer of assets to new Depositante with same Comitente name and proof of relationship
 Will require proof of ownership or control of Comitente through local judge for other situations
 Global bankruptcy will be managed by local Depositante
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