Market & Service Update

Transcription

1 Market & Service Update ASLF 2017 Ingrid Collazo Securities Services Head

2 ,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Source: Buenos Aires Stock Exchange Argentinean Capital Markets 3,687 Equity Market Capitalization US$ Billion Foreign investment - US$ Million 1,822 1,949 3,380 3,632 2,376 Source: Central Bank of Argentina 1,641 1,287 4, % +777% YoY Stock 4% Trading By Security Type Corporate bonds Repos 12% 2% Others 2% Source: Buenos Aires Stock Exchange Goverment Bonds 80% Fixed Income Traded Volume - US$ MAE (OTC) BCBA Source: Mercado Abierto Electrónico Buenos Aires Stock Exchange

3 Recent Market Developments Key Development FX Market Simplified due diligence New tax ID: CIE Clave de Inversiones del Exterior Change Repatriation restrictions were lifted Financial Information Unit created a simplified due diligence process for foreign investors The Tax Authority issued a new tax ID for non-residents investors denominated ( CIE ) Client Impact - Free inflow and outflow of funds - Repatriation of legacy balances - Applicable for new type of accounts: Special Investment Accounts - Electronic documentation - Faster and simpler onboarding - Issued electronically through the tax authority s webpage - Documentation can be submitted on-line This information is not intended to constitute legal, regulatory, tax, investment, accounting, financial or other advice by any member of the Citi organization

4 Recent Market Developments Key Development Market improvements Capital Markets Law Reform New Market Infrastructure Change Caja de Valores ( CDV ) has been authorized by the National Securities Comission ( CNV ) to perform Delivery Vs Payment settlements ( DVP ) The reform on the capital markets law is expected to be approved in 2017 Merger between Bolsa and Merval creating Bolsas y Mercados Argentinos (B&MA) Client Impact Two implementation phases: - Local clients who settle trades in ICSDs through CDV-ongoing - Rest of local and foreign participants- 3Q/4Q Removal of Capital Gains Tax (CGT) - Integration of markets - Decrease superpower of the CNV - Interconnected and transparent market - End of dual structure

5 Forthcoming Initiatives Market advocacy Proxy Voting eliminate the requirement of being registered before Superintendence of Corporations ( IGJ ) to be able to vote Simplified due diligence on Special Investment Accounts Cross opportunities with trading/fx for final investors Third Party FX Standing Instructions for FX transactions MT300 confirmations Product/ Service offering FX Pulse / FX Single Pipe Enhancements on MT9XX to include additional information (i.e. client MT202 reference, ISIN number)

6 Country Hot Topic: Market Opening FX MARKET - removal of restrictions day holding period - Proof of FX inflow - Proof of use and flow of funds - No cash reserve requirements New instruments available (i.e. Letras del Banco Central Lebac s ) and Government issuances in Argentine Pesos and USD Simplified due diligence process - New tax ID CIE accelerated issuance process - Documentation accepted electronically Argentinean bonds registered at the SEC Widens the range of potential buyers of government debt in international markets Special Investments Account - No legal representative required to close FX (noncustody clients) - Third Party FX. MSCI Classification to be upgraded to Emerging Market GBI-IM Index Argentine bonds denominated Bonos del Tesoro ( Botes ) included on the index

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