The Central Bank of the Argentine Republic (BCRA) announced that The settlement period for foreign exchange operations will change starting Monday, June 3, to adapt to the new international deadlines.
“The BCRA will change from T+0 to T+1 (one day after the date of completion) the settlement period for its operations in the wholesale exchange market, with the aim of aligning itself with the initiative promoted by the main international markets”the entity said in a press release.
It did so through Communication “B” 12796, in which the BCRA specified that “it will participate exclusively in the T+1 period of the CAM 1 wheel of the Siopel system of the Electronic Open Market (MAE).”
In that sense, he clarified that “in order not to alter the open contracts that settle on Friday, May 31, 2024 that have as a reference the exchange rate of Communication ‘A’ 3500, it was resolved to start this new operation as of Monday June 3, 2024.”
Market sources explained to ambit that “The impact of the Central’s measure is only to align settlements, which facilitates operations and prices.”
On the same day, the system for settling currency purchase and sale operations will also change and will begin to use the MAE’s MAEClear multilateral cleared settlement system.
“This measure complements the migration to this system that the BCRA carried out starting in January, in accordance with the provisions of Communication “B” 11384, to settle the operations it arranges in the MOME wheel (exchange operations between MEP accounts and correspondent with T+1 settlement)”, added the entity.
The official statement stated that “the rest of the market operators will be able to continue arranging their operations within the usual settlement periods, both bilaterally and through MAEClear.”
The BCRA explained that “The most important markets in the world are synchronizing their settlement periods following the decision of the United States Securities and Exchange Commission (SEC), which announced the reduction of the settlement period from T+2 to T+1 for certain transactions “.
“At the local level, Bolsas y Mercados Argentinos (BYMA) announced the reduction of the settlement period from T+2 to T+1 for the trading of stocks and bonds, which implies bringing most of the volume of transactions to that settlement period. market,” the entity added.
Source: Ambito
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