COMMUNICATION “A” 6621 02/01/2019

TO FINANCIAL ENTITIES:

Reference: Circular RUNOR 1‑1435
Central Registry and Settlement of Public Debt Instruments, Monetary Regulation and Financial Trusts (CRyL) ____________________________________________________________

We address you to inform that the Board of this Institution resolved the following:

“‑ Replace the rules on ‘Central de registración y liquidación de instrumentos de endeudamiento público CRyL’ with ‘Central de registro y liquidación de instrumentos de deuda pública, regulación monetaria y fideicomisos financieros (CRyL)’ as set out in the annex and forming part of this communication.”

It is also reminded that on the Institution’s website www.bcra.gob.ar, by accessing “Financial System – LEGAL FRAMEWORK AND REGULATIONS – Orders and Summaries – Texts ordered of general regulations”, the modifications will be found with changes highlighted in special characters (strikethrough and bold).

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Gonzalez Blanco, Eladio Briones Rouco, Luis Daniel Manager of Settlement and Support of External Operations

ANNEX

Chief Manager of Control and Settlement of Operations

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Index

Section 1. General Rules
1.1. Creation.
1.2. Nature and purpose.
1.3. Operational characteristics.

Section 2. Operations
2.1. Instructed by the Ministry of Finance.
2.2. Instructed by the General Sub‑Management of Operations of the BCRA.
2.3. Ordered by the holders of registration accounts.

Section 3. Authorizations
3.1. Authorized subjects.
3.2. Opening of current accounts.
3.3. Classification of registration accounts.

Section 4. Disclosure of registration accounts and service provision
4.1. Data of registration accounts.
4.2. Payment of services.

Section 5. Transfers between agents
5.1. Electronic “Free Bilateral” transfer (FT) for intra‑CRyL operations.
5.2. Electronic “Free Conformed” transfer (FTC).
5.3. Transfers for guarantee accounts and minimum cash concerning securities not placed by CRyL.
5.4. “Delivery versus Payment” transfers (DVP).

Section 6. Instructions for daily settlement – FT, FTC and DVP models with coordination and settlement in CRyL
6.1. Confrontation.
6.2. Error determination.

B.C.R.A.

ORDERED TEXT OF THE RULES ON “CENTRAL REGISTRY AND SETTLEMENT OF PUBLIC DEBT INSTRUMENTS, MONETARY REGULATION AND FINANCIAL TRUSTS (CRyL)”

Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

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Section 7. Instructions for contingency settlement
7.1. “Free Conformed” transfers (FTC model).
7.2. “Free” transfers (FT model).
7.3. Failures due to insufficient balances.
7.4. Integration and presentation of forms.
7.5. Formulas.

Section 8. Information regime
8.1. Daily.
8.2. Monthly.
8.3. Others.

Section 9. Fees

Section 10. Presentation forms
10.1. Instructions.
10.2. Requests for opening current and special accounts.

Section 11. Formula models
11.1. “Delivery versus Payment” transfer – DVP (Form 4359).
11.2. “Free Conformed” transfer – FTC (Form 4359B).
11.3. “Free” transfer – FT (Form 4359C).
11.4. Movement of securities balances by account.

Correlation Table

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1.1. Creation

The creation of the “Central Registry and Settlement of Public Debt Instruments, Monetary Regulation and Financial Trusts – (CRyL)”, under the jurisdiction of the Central Bank of the Argentine Republic (BCRA), was ordered by the Treasury Secretariat in accordance with the National Executive Decree No. 340/96.

1.2. Nature and purpose

CRyL’s purpose is to enable counterpart accounts for the registration of primary placements and transfers between accounts ordered by their holders. These counterpart accounts, which will also reflect amortizations and payment of rental services, shall be called registration accounts.

The BCRA’s participation as system administrator shall in no case constitute financing to the National Treasury or to participants for the operations they carry out, in accordance with current legislation.

1.3. Operational characteristics

Collective written titles representing Public Debt Instruments (IDP) whose primary placement is instructed by the Ministry of Finance shall be deposited in custody at the BCRA.

Collective written certificates representing Monetary Regulation Instruments (IRM), whose primary placement is instructed by the General Sub‑Management of Operations of the BCRA, shall be deposited in custody at that Institution.

Records of financial trusts and the acceptance of custody deposits of instruments of the same nature, characteristics and registrable, that are registered in other local or foreign institutional custodians, shall also be accepted.

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Section 1. General Rules

Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

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2.1. Instructed by the Ministry of Finance

It includes settlement and registration of primary placements of IDP, their amortization and payment of rental services.

2.2. Instructed by the General Sub‑Management of Operations of the BCRA

It includes settlement and registration of primary placements of IRM, their amortization and payment of rental services.

2.3. Ordered by the holders of registration accounts

2.3.1. Free transfers and payments

Refers to the registration of FT instructions.

2.3.2. “Delivery versus Payment” (DVP) transfers

The settlement and registration of instructions for these transfers between registration accounts is conditioned on verification of simultaneous payment.

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Section 2. Operations

Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

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3.1. Authorized subjects

The following shall have registration accounts:

a) Entities covered by Law 21.526 – “Financial Entities Law”, duly authorized by the BCRA.

b) Domestic securities markets.

c) Mutual funds whose shareholders are residents of the country.

d) National and International Securities Depository Centrals.

e) Any institution that, at the judgment of the BCRA and/or the Coordinating Body of Financial Administration Systems, is deemed convenient to be granted participation.

To that end, interested parties must submit a note requesting the opening of registration account(s) to the Chief Management of Control and Settlement of Operations.

Similarly, to carry out their operations they must request the opening of the monetary current accounts they consider necessary. Such requests shall be made according to the provisions of the Current Accounts Management.

3.2. Opening of current accounts

Simultaneously with the authorization in point 3.1, in order to enable settlement of “DVP” operations, the BCRA shall open restricted‑activity current accounts in the name of registration‑account holders that are not financial entities, under the terms of the Financial Entities Law.

3.2.1. Permitted operations

Restricted‑use current accounts shall be enabled to:

• 3.2.1.1. Accept credits and debits not related to the restrictions set out in points 3.2.2.2 and 3.2.2.3.
• 3.2.1.2. Accept credits and debits for transfers between current accounts housed at the BCRA.

3.2.2. Limitations

Current accounts shall have the following restrictions:

• 3.2.2.1. No checkbooks shall be issued to their holders.
• 3.2.2.2. Their balances shall not be included in the clearing sessions of checks and securities of the Clearing Houses.
• 3.2.2.3. Their balances shall not be included in the active and passive pass operations for the BCRA.

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Section 3. Authorizations

Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

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3.3. Classification of registration accounts

Each CRyL participant shall have registration accounts according to the holders of the IDP and/or IRM registered:

3.3.1. Own portfolio

The number of this registration account shall consist of the assigned account number, which will correspond to the current‑account number (up to 5 digits) followed by “01”, totaling 7 digits, and shall be enabled for all participating agents of CRyL.

The own portfolio shall be the only portfolio opened without a request from the interested parties.

3.3.2. Custody portfolio over private‑sector holdings

The number of this registration account shall consist of the appropriately assigned account number followed by “02”, and shall be enabled for agents or financial entities to register globally the holdings of their clients.

3.3.2.1. Special accounts for financial entities acting as custodian and registration agent

Financial entities may request the opening of special currency‑denominated accounts associated with special registration accounts, in their own name, to register individually the transactions of their custodians, independent of the “Account 02” group.

a) For these special cases a limited number of account sets shall be enabled, according to the operational possibilities of the active systems. The primary numbering of each pair of accounts shall be the same, with the addition of “99” for the registration account.

b) Both special accounts, whose holder shall always be the financial entity and which shall be used exclusively to record movements of individual custodians, shall be operated through any of the instruments processed in CRyL.

c) In the case of special currency accounts, transfers instructed through the Electronic Payments Medium (MEP) shall also be accepted according to the instructions that will be given to each applicant at the time of opening.

3.3.3. Custody portfolio over public‑sector holdings

The number of this registration account shall consist of the appropriately assigned account number followed by “12”, and shall be enabled for agents or financial entities to register globally the holdings of their clients, who must be exclusively part of the public sector.

3.3.3.1. Special accounts for financial entities acting as custodian and registration agent

Financial entities may request the opening of special currency‑denominated accounts associated with special registration accounts, in their own name, to register individually the transactions of their custodians, independent of the “Account 12” group.

a) For these special cases a limited number of account sets shall be enabled, according to the operational possibilities of the active systems. The primary numbering of each pair of accounts shall be the same, with the addition of “26” for the registration account.

b) Both special accounts, whose holder shall always be the financial entity and which shall be used exclusively to record movements of individual custodians, shall be operated through any of the instruments processed in CRyL.

c) In the case of special currency accounts, transfers instructed through the Electronic Payments Medium (MEP) shall also be accepted according to the instructions that will be given to each applicant at the time of opening.

d) Entities shall have an explicit declaration from their custodians, whose holdings are registered both in the global “12” account and in the individual accounts, indicating that their IDP and/or IRM remain registered in the custodian entity and are not transferred to Caja de Valores S.A., in accordance with the tax‑exemption law for the purchase of private‑sector securities in income tax and the provisions of the regulatory decree governing the operation of Caja de Valores S.A.

e) The balances recorded and the movements performed by custodial or depository entities in their global registration accounts ending in “12” and in the special individual‑use accounts shall be consistent with the analytical registrations in the sub‑accounts opened for each client that holds its holdings in the entity, according to the supporting documentation. Analytical records shall be kept by security type and client. At least quarterly, the custodial or depository financial entity shall send each client an account summary that, at a minimum, includes the movements and balances by security type recorded for the reporting period.

3.3.4. Institutional custodians

The number of this registration account shall consist of the appropriately assigned account number followed by “04”, and shall be enabled for general use by the Securities Markets and National and International Securities Depository Centrals.

The number of this registration account shall consist of the appropriately assigned account number followed by “24”, and shall be enabled for general use by entities belonging to the Public Sector that have a registration account.

3.3.5. Market guarantees

The number of this registration account shall consist of the appropriately assigned account number followed by a two‑digit code, according to the following classification:

• 3.3.5.1. Public‑Sector Market Guarantees: code “21”.
• 3.3.5.2. Market Guarantees 1 Public‑Sector: code “22”.
• 3.3.5.3. Market Guarantees 2 Public‑Sector: code “23”.
• 3.3.5.4. Private‑Sector Market Guarantees: code “39”.
• 3.3.5.5. Market Guarantees 1 Private‑Sector: code “40”.
• 3.3.5.6. Market Guarantees 2 Private‑Sector: code “41”.

Registration accounts opened in the name of the same agent shall operate independently. Transfer of IDP and/or IRM between accounts of the same agent shall be carried out by presenting FT instructions.

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4.1. Data of registration accounts

Registration accounts shall display movements and balances by security type in original nominal values (VNO).

4.2. Payment of financial services

Payment of amortization and rental services shall be made at the opening of operations according to the following schedule:

• 4.2.1. Payment of services related to IRM shall be made before 10:00 a.m. on the day established in the issuance conditions.
• 4.2.2. Payment of services related to IDP shall be made before 09:30 a.m. on the day established by the Ministry of Finance.

For IDP, the schedule may only be modified by an explicit request of the issuing body.

For IRM, the schedule may only be modified by the BCRA.

Payments shall be available in current accounts prior to the settlement of primary placements and the remaining instructions.

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Section 4. Disclosure of registration accounts and service provision

Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

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5.1. Electronic “Free Bilateral” transfer (FT) for intra‑CRyL operations

This unilateral and multiple‑use instruction must be issued by the holder of the sending account. The ordering party shall be obliged to inform the holder of the receiving account, the ultimate beneficiary of the transfer, according to the methodology arranged between the holders, except when the movement is between accounts of the same holder.

FT instructions shall be received electronically between 09:00 and 19:00.

Instructions that fail due to insufficient balance shall be reported to the National Securities Commission (CNV) and to the self‑regulated entity concerned, and the corresponding fees shall be charged as established in Section 9.

5.2. Electronic “Free Conformed” transfer (FTC)

Instructions for these transfers to credit accounts/clients housed at Caja de Valores S.A. shall be received between 09:00 and 18:30 and shall be taken as final, crediting the registration account of that Caja, provided there is no rejection on its part.

The instruction to be sent electronically to Caja de Valores S.A. shall be the same as that presented by the ordering party, so CRyL shall bear no responsibility for errors in the account/client number to be credited.

Instructions that fail due to insufficient balance or that receive rejections from Caja de Valores S.A. shall be reported to the CNV and to the self‑regulated entity concerned, and the corresponding fees shall be charged as established in Section 9.

5.3. Transfers for guarantee accounts and minimum cash, to and from Caja de Valores S.A., via the IDEAR mail system and the Secure Communications System (SCS) concerning securities not placed by CRyL

For the constitution of guarantees and/or minimum cash, the Secure Communications System (SCS) provided by Caja de Valores together with the IDEAR transfer system are used jointly.

These transfers shall only be available for those IDP where CRyL is not the primary registration agent. No other IDP shall be accepted for this procedure, nor, under any circumstance, IRM.

For these operations CRyL establishes a schedule of liquidation rounds during the day:

• 1st ROUND: 12:30.
• 2nd ROUND: 15:00.
• 3rd ROUND: 18:00.

Instructions that fail due to insufficient balance or non‑compliance with procedures shall be reported to the CNV and to the self‑regulated entity concerned, and the corresponding fees shall be charged as established in Section 9.

5.4. “Delivery versus Payment” transfers (DVP model)

These transfers shall be fulfilled provided sufficient balance exists in both the current account and the registration account. If one or both accounts lack sufficient balance, the instruction, whether in currency or in IDP and/or IRM, shall not be fulfilled. Failed instructions shall be included by CRyL in subsequent settlements up to the last of the day.

5.4.1. DVP model with coordination and settlement in CRyL

DVP instructions are bilateral and must be issued by the holders of both accounts: the registration account and the involved current accounts, by integrating Formula 4359 whose model is set out in point 11.1.

5.4.2. DVP model with coordination in MAE and settlement in CRyL

DVP instructions are bilateral and must be issued by the holders of both accounts: the registration account and the involved current accounts, respecting the following conditions for settlement:

a) Settlement schedule: 11:00 to 19:00.

b) Participants:

• Must be an MAE agent,
• Must hold a registration account in CRyL, and
• Must have a current account in pesos and foreign currency at the BCRA.

c) Involved accounts: registration account in CRyL, current account in pesos and in foreign currency.

d) Enabled portfolios:

• 01 – “Own”.
• 02 – “Private‑Sector Custody”.
• 12 – “Public‑Sector Custody”.

e) Tradable securities: all securities issued by CRyL.

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Section 5. Transfers between agents
Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

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Section 6. Instructions for daily settlement – FT, FTC and DVP models with coordination and settlement in CRyL Version: 2a. COMMUNICATION “A” 6621 Effective date: 03/01/2019

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Section 7. Instructions for contingency settlement Version: 2a. COMMUNICATION “A” 6621 Effective date: 03/01/2019

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Section 8. Information regime
Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

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Section 9. Fees
Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

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Section 10. Presentation forms
Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

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Section 11. Formula models
Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

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Form 4359 – DVP Transfer
(Details of the formula are reproduced verbatim in the original document.)

Form 4359B – FTC Transfer
(Details of the formula are reproduced verbatim in the original document.)

Form 4359C – FT Transfer
(Details of the formula are reproduced verbatim in the original document.)

Movement of securities balances by account (Details are reproduced verbatim in the original document.)

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End of Document

f) Settlement currency: conditional on the accounts that entities maintain at the BCRA.

g) Reception of operations: MAE will send the effectively agreed operations, which will be settled immediately; if they cannot be settled due to insufficient balances in any of the intervening accounts, they will be included in subsequent settlement processes.

h) Settlement times:

• 12:00
• 15:00
• 18:00

i) Operations cannot be deferred. Therefore, operations that by 19:00 cannot be settled because of insufficient balance will be reported to the CNV and to the self‑regulated entity that may be interested, and the corresponding fees will be charged as established in Section 9.

CENTRAL REGISTRY AND SETTLEMENT OF PUBLIC DEBT INSTRUMENTS, MONETARY REGULATION AND FINANCIAL TRUSTS (CRyL)

Section 5. Transfers between agents

Version: 1a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

Matching controls (“prematching”)

6.1. Confrontation

It shall be carried out based on the total information received from both parties. For this purpose, unique records will be built containing the following data, which must be completely matching:

• Presentation model.
• Agreement date (DVP) or presentation date (FT and FTC).
• Settlement date.
• Seller or assignor registration account number.
• Buyer or recipient registration account number.
• Operation class.
• Code of the involved security.
• Quantity of nominal values.
• Amount of the counter‑value in currency (except for FTC and FT instructions).

6.2. Determination of errors

If errors are detected in the matching control, the observed instructions shall be replaced by the party that committed the error. To this end, a fully integrated replacement instruction must be presented, keeping the same agreement and settlement date as the original, until 16:00 h on the day the mismatch is reported.

Replacements of the instructions observed in the second daily matching control, which will be the first for instructions settled within 24 hours, must be received by 18:30 h, and if the mismatch persists, corrections of the instructions settled the next day will be received until 19:00 h. If the mismatch remains, the instruction will not be presented in the settlement processes to be carried out on the next business day. If the instruction is insisted upon, it must be resubmitted by both parties for another settlement date.

Section 6. Instructions for daily settlement – Model FT, FTC and DVP with agreement and settlement in CRyL

Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

7.1. “Free conforming” transfers (Model FTC)

This instruction (Form 4359B – point 11.2.) for single use will be received by CRyL between 10:00 and 17:30 and, after verifying the signatures of the holders and confirming the balance of the assignor registration account, will be settled.

Presentations of these transfers for credit or debit of accounts/clients located at Caja de Valores S.A. will be received between 13:00 and 18:30 and will be taken as final, crediting or debiting the registration account of that depository, provided there is no rejection from its side.

Rejections due to incorrect signatures and/or insufficient balance in the registration account, as well as the conformity of the instructed transfer, will be communicated on the next business day. Conformity or rejection will be evidenced by delivering the presenter a photocopy of the paper form enabled for this purpose, with the corresponding certification by the CRyL authorities.

7.2. “Free” transfers (Model FT)

This instruction (Form 4359C – point 11.3.) for unilateral and multiple use must be issued by the holder of the assignor account. For credits to registration accounts ending in “02” (third‑party holdings), the ordering party must inform the holder of the recipient account, the final beneficiary of the transfer, according to the methodology arranged between the holders, except when the movement is between accounts of the same holder.

“FT” instructions will be received between 10:00 and 17:30 and will be settled at the close of the day’s operations.

Rejections due to incorrect signature, as well as those due to insufficient balance, will be informed on the next business day.

7.3. Defaults due to insufficient balances

If defaults occur because of insufficient balance in a registration account, they will be reported to the National Securities Commission and to the market in which they operate, with the corresponding specifications. The applicable fees, including those arising from defaults, will be debited from the official current account of the financial entity agent.

7.4. Integration and submission of forms

Transfers between agents, whether “Free conforming” (Model FTC) or “Free” (Model FT), shall observe as a general rule that all forms be submitted fully integrated, with clear text, without scratches or amendments, and signed in accordance with the specifications recorded in the Signature Register for fund availability of the entities at the BCRA.

Section 7. Instructions for contingency settlement

Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

7.5. Forms

The presentation of printed forms by the holders of registration accounts is authorized, provided they respect A4 size and the distribution of the contained information. Bilateral models may be split by registration account into two printed forms, one instruction reporting purchases or deposits and another reporting sales or deliveries. In such cases the heading of the model must be repeated.

Version: 1a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

CRyL will deliver the following reports to the holders of registration accounts:

8.1. Daily

A detail of what was registered on the previous business day, by account and security, according to the format attached in point 11.4.

8.2. Monthly

A detail of what was registered during the whole month, with the same format as mentioned in the previous point (point 11.4).

8.3. Others

Additionally, agents may request other types of information subject to fees as established in Section 11.

Section 8. Information regime

Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

The fees that will be charged for this operation are the following:

CONCEPT	AMOUNT	PARTIES
a) FT Model Transfer	$125	Ordering party
b) FTC Transfer (Accounts of Caja de Valores S.A.)	$125	Ordering party
c) DVP Model Transfer	$200	2
d) DVP Model Default	$2,500	Defaulting party
e) FTC Model Default	$500	Defaulting party
f) FT Model Default	$500	Defaulting party
g) General maintenance of registration accounts (fees for transfers made during the current month will be deducted from this fee)	$17,500 per month	—
h) Maintenance of special registration accounts in currency and IEP for custody transactions	$1,750 per month	—
i) Request for printed account statements	$200 up to 30 pages, and $5 for each page exceeding 20	—
j) Primary placement settlement	No charge	—
k) Amortization and rent settlement	No charge	—
l) Custody of holdings	No charge	—

Transfers listed in items a) and b) of the preceding table will be exempt from this fee when they are ordered on the days on which the primary BCRA and National Government auction settlements are carried out, so that the holdings produced by those auctions can be transferred to their corresponding Collective Deposit Agents.

The charge for items g) and h) of the preceding table will be effected for the elapsed month, within the first 10 business days of the following month.

All fees will be collected by direct debit from the current accounts opened at the BCRA.

Section 9. Fees

Version: 4a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

10.1. Instructions

The submission of instructions must be made at the office of the Central Registry and Settlement of Public Debt Instruments, Monetary Regulation and Financial Trusts located in the Main Management of Control and Settlement of Operations, Reconquista 266, Central Building.

10.2. Requests for opening current and special accounts

The opening of a current account with restricted activity and special accounts for custody use must be requested at the Current Accounts Management with a copy to the Main Management of Control and Settlement of Operations.

Section 10. Forms of document submission

Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

11.1. “Delivery versus payment” Transfer – DVP (Form 4359)

Section 11. Formula models

Version: 2a. COMMUNICATION “A” 6621
Effective date: 03/01/2019

11.2. “Free conforming” Transfer – FTC (Form 4359B)

11.3. “Free” Transfer – FT (Form 4359C)

11.4. Movement of security balances by account

Ordered text of original regulation

Section	Point	Annex	Comm.	Cap./Annex	Paragraph Point	Observations
A	3191	—	According to Comm. “A” 6621.	—	—	—
A	3191	—	According to Comm. “A” 6621.	—	—	—
A	3191	—	According to Comm. “A” 3253 and 6621.	—	—	—
A	3191	—	According to Comm. “A” 6621.	—	—	—
A	3191	—	According to Comm. “A” 6331 and 6621.	—	—	—
A	3191	—	According to Comm. “A” 6621.	—	—	—
A	3191	—	According to Comm. “A” 6621.	—	—	—
A	3191	—	According to Comm. “A” 6621.	—	—	—
A	3191	—	According to Comm. “A” 3254, 6138 and …	—	—	—
A	3191	—	According to Comm. “A” 6621.	—	—	—
A	3191	—	According to Comm. “A” 6621.	—	—	—