The entity authorized two tools promoted by BYMA and Matba Rofex, respectively. These are innovative instruments for the local market.
The National Securities Commission (CNV) enabled the operation of two new financial instruments driven by the private sector. It is about the verified carbon credit certificateswhich aim to ensure that companies can comply with their environmental commitments, and futures contracts on the Reference Stabilization Coefficient (CER)which offer inflation coverage.
These are two initiatives that provide tools that until now were not part of the range of alternatives in the local financial market. Neither of the two measures requires officialization through a general resolution of the CNV, which is why They have already been enabled by the organization for negotiation.
CNV approved carbon credit certificates
“Firstly, in line with the experience of over-the-counter markets at an international level, in which growing private actions aimed at generating voluntary carbon markets are evident, The CNV enabled the creation of a specific area for voluntary negotiation of verified carbon credit certificates (VCU, Verified Carbon Units, for its acronym in English), outside the public offer“, explained the organization chaired by Roberto Silva in a statement. And he added: “These certificates represent a reducing or eliminating emissions of one ton of carbon dioxide equivalent (tCO2e)”.
It is a initiative promoted by Bolsas y Mercados Argentinos (BYMA) so that, through their systems enabled for this purpose and within the framework of related and complementary activities allowed to the markets, the companies canvoluntarily, choose offset your carbon emissions through the purchase of VCU in order to comply with its environmental commitments.
BYMA reported that it will give visibility through its corporate website to carbon credit purchases in a specific panel, with mention of the final beneficiary, providing transparency in the movements made by Carbon Footprint offset purchases.
Certificate issuers can be entities, organizations or governments that generate carbon credits through different types of projects. Buyers, in fact, can be companies, organizations, governments and individuals who wish to offset their carbon emissions by purchasing VCUs.
Around the world, voluntary carbon markets emerged in response to the need for address climate change and achieve global greenhouse gas emissions reduction goals.
CER Futures
Besides, The CNV enabled an initiative promoted by Matba Rofex: the negotiation of futures contracts whose underlying asset is the CER (a coefficient indexed to inflation). The authorization of its operation is given together with the approval of the “Regulations of the Futures Contract on CER” of said market.
The CNV pointed out that this product “contributes to the growth of the Argentine financial system, which until now did not have an instrument of these characteristics.” These new future contracts will function as a additional tool for risk management regarding inflation expectations. That is, they will provide an alternative similar to what dollar futures have today as a hedging instrument against devaluation.
“These measures are in line with the management objectives promoted by the CNV Board, the development of the Argentine capital market and innovation, without unprotecting investors,” the organization stated in a statement.
Source: Ambito
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