Argentina Securities Commission revises ALyC reporting regime with net foreign currency holdings and clarified prudential breach sanctions

The Argentina Securities Commission has approved changes to the reporting regime for settlement and clearing agents (ALyCs), refining the information they must provide on foreign currency holdings and financial indicators. The update introduces a net foreign currency holding concept alongside gross holdings, clarifies how key liquidity and leverage indicators must be calculated, and sets operational restrictions for breaches of prudential limits. If an ALyC does not regularize a prudential limit breach within two business days, it must stop entering new trades for its own account. After four business days of non-compliance, a full suspension of operations applies under Article 12 of Chapter VII. All variables must be calculated on a trade date basis, except for Liquidity II and III, where client credit balances must be calculated on a settlement basis. For leverage indicators, the net equity used during a month will be the previous month-end figure, with recalculation allowed within the reporting month if there are commitments from shareholders or third parties for capital contributions or irrevocable contributions. To facilitate implementation, daily data for May will not be required. Daily reporting will start with June data, which will be submitted in July.