BYMA incorporates “Short Selling” and “Securities Lending”.

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BYMA incorporates “Short Selling” as a new transaction type and also updates “Securities Lending” conditions

Following its trend of generating actions towards a more efficient and attractive Argentine Capital Market for local and international investors, BYMA incorporates “Short Selling” as a new transaction type and also updates “Securities Lending” conditions, which shall be governed by best practices and international regulations, therefore promoting our country possible re-entry into the EMERGING MARKET status.

Both transactions can be traded in the MILLENNIUM platform, which is used by BYMA, in the secondary trading segment and under Price-Time Priority terms, with collateral management to be provided by BYMA as central counterparty to insure the settlement of these trades on their maturity date.

About  “Short Selling”.

“Short Selling” is a type of transaction currently in force in international capital markets, which fosters and expands liquidity opportunities and specially futures and options by generating the implementation of arbitration strategies and promoting an increased participation of local and international investors.

By means of “Short Selling”, investors can sell equity and fixed income securities not included in their investment portfolio, gathered as a “Loan” within the same trading session.

About “Securities Lending”.

BYMA has updated the conditions of trading and relaunches its application by incorporating “Securities Lending” in the regular cash settlement. By means of “Securities Lending”, investors may obtain a higher performance on its securities portfolio and at the same time options market development will be enhanced.

Through “Short Selling” and “Securities Lending”, BYMA provides more certainty and strength to the settlement cycle of trades.

The system of risk control and permanent monitoring implemented by BYMA will allow for the detection of abusive practices or accumulated short selling open positions, which might generate systemic risk for the market.

About BYMA Circulars No. 3574 SECURITIES LENDING and No. 3575 SHORT SELLING.

The new transaction “Short Selling” shall be governed by BYMA Circular No. 3575  and the transaction “Securities Lending” by BYMA Circular No. 3574, both approved by COMISIÓN NACIONAL DE VALORES (CNV) (NATIONAL SECURITIES COMMISSION) on 12 April 2018, in compliance with the provisions set forth by General Resolution No.  720/18 issued by the CNV on 11 January 2018.

As a complement and prior to their launching, BYMA will provide information on which securities will be traded under “Short Selling” and “Securities Lending” transactions, as well as the initial margin and operative quotas to be fulfilled by the participants.