This Monday, the regulatory readjustment that modified the normal settlement period from 48 hours (T+2) to 24 hours (T+1) began to take effect in Argentina.
Attention investors: transaction settlement deadlines are changing, what impact does it have on the market?
Freepick
The National Securities Commission (CNV) decided to align itself with the new regulations of the Securities and Exchange Commission (SEC), from the United States, which was approved earlier this month. Therefore, as of this Monday, the changes began to take effect. in the normal settlement periods, which goes from 48 hours (T+2) to 24 hours (T+1)while this Tuesday it will govern in the United States (this Monday is a holiday in the northern country) for Argentine assets.
consulted by Ambit, Ignacio Sniechowskihead of Research at IEB Group, explained what these changes are about. “It implies that all settlements now begin to take place within 24 hours by default. Although the CI continues to exist (immediately counted), it disappears after T+2 or 48 hours. In general, in the world almost all markets operate T+1, so it is a bit of aligning with that trend“.
In tune with Sniechowski, the analyst Gabriel Bagattini contributed: “The settlement period of 48 hours (T+2) was eliminated. Now the maximum settlement time is 24 hours (T+1). That means that if I sell an instrument, I will have the cash in 24 hours. In this way, the volume of the 48 and 24 hour deadlines is unified. in a single period”.
“The big change that was seen this Monday is that the one-day bond rate is higher than the two-day bond rate. The last time was invested in 48-hour term instruments. and that overdraft was invested in a bond also for 48 hours. For those 2 days there was an interesting benefit when investing and depositing. Now the maximum is 1 day“he added.
How the new settlement period will impact some stock instruments
In dialogue with Ambitthe Economist José Ignacio Bano He reviewed how the Stock Market operates. “When you operate in the stock market you have two key moments: the date of concertation and the date of settlement the agreement date,” he explained.
The first of them is when the order is loaded, and that already generates an operation at the agreed price with the agreed quantities; and the settlement is when The pesos are actually sent to the market or the market gives the securities to the investorBano expanded.
“About 10 years ago, the normal settlement period was 72 hours,” the economist recalled and recalled that “The world’s main stock exchanges are lowering the settlement period to 48 to 24 hours.”
“These changes will surely affect the Common Investment Funds. Each fund will have to make its adjustments, but we still have to see. The T+2 funds were funds that operated instruments with a T+2 term, now that the terms have been lowered they will surely begin to settle within 24 hours.“Bano expanded.
Source: Ambito
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