Dollar: new measures to avoid speculation with financiers

As a result of the increase in the volume traded in the so-called financial dollars and the volatility observed in their prices, the National Securities Commission (CNV) ordered, by General Resolution No. 959 and in dialogue with players in the stock market such as Bolsas y Mercados Argentinos (BYMA), Two measures that will apply from this Tuesday:

1) Require Stockbrokers (Settlement and Clearing Agents (ALyCs) and Negotiation Agents) that they may not proceed or settle sales operations of negotiable securities with settlement in foreign currency to clients who have positions taking on sureties and/or reposregardless of the settlement currency.

2) Establish limits to the own portfolios of ALyCs in terms of the number of marketable securities sold with respect to the number of marketable securities purchased -with settlement in foreign currency and in local or foreign jurisdiction-, carried out in the bidding segment, with price-time priority.

Thus, the effect is that ALYCs will have less freedom and liquidity to go against the Central Bankaccording to official media.

The official intention is also avoid the use of the bond wheel to finance the purchase of securities to be later settled in foreign currencyas observed during the last rounds.

The rule aims to order the participation of ALyCs in the settlement of titles both in pesos and in US dollars, through establishing a netting of daily operations for their own portfoliosa measure that has already been in force in recent years, but this time with scope for dollar titles, both under foreign law and local law.

The authorities clarify that both measures do not affect individuals or legal entities that genuinely need or wish to use the stock market to liquidate dollarized assets.

The agreed norms “will serve to reinforce the value of bonds, support institutional investors and cleanse the market of speculators”they explain.

“Basically the intention is avoid the processes of speculation that generate runs and let those who really need financial dollars operate freely”they affirm in means of economic conduction.

These measures were promoted by the Minister Sergio Massa who promised to “use all the tools of the State” to order the exchange marketas he pointed out days ago on social networks.

The Palacio de Hacienda insists that all necessary measures will be taken to keep the exchange market in order, including the intervention of the Central Bank, a measure that was notified by the economic leadership to the IMF.

“We are going to use the economic Criminal Justice as a vehicle for investigation and clarification of some behaviors and the UIF and the CNV for the analysis of operations related to money laundering,” Massa also warned in a thread of tweets on April 25.

At the same time, the minister said, “we are going to continue with the multilateral agreements, exporters with the transformation of exports into yuan and the disbursement agreement with the IMF to strengthen the reserves that were affected by the impact of the drought.”