Compilation of Operating Rules – Modification of Article 1 of Book I – Foreign Exchange Operations and Article 155.8 of Book XII – Information; effective March 1, 2024

Montevideo, February 1, 2024 Ref: COMPILATION OF OPERATING RULES – Modification of Article 1 of Book I – Foreign Exchange Operations and Article 155.8 of Book XII – Information; effective March 1, 2024.

It is brought to your attention that this Central Bank adopted, on January 31, 2024, Resolution D/24/2024, which is transcribed below:

Ec. Adolfo Sarmiento Manager of Economic Policy and Markets (Ref. No. 2020-50-1-01055) Diagonal Fabini 777 - C.P. 11100 - Tel.: (598 2) 1967 - Montevideo, Uruguay - www.bcu.gub.uy

1 CIRCULAR NO. 2446

BOARD OF DIRECTORS - RESOLUTION Montevideo, January 31, 2024.

BOARD OF DIRECTORS

HAVING VIEWED: Article 1 of Book I – Foreign Exchange Operations and Article 155.8 of Book II – Information, of the Compilation of Operating Rules.

WHEREAS: the Manager of Economic Policy and Markets, which is responsible for the regulation of the foreign exchange market, submitted a proposal to modify the aforementioned Compilation regarding the disclosure of over-the-counter foreign exchange market operations and the possibility for non-financial companies to operate with each other.

CONSIDERING: I) that an efficient and deep foreign exchange market requires competition, the elimination of obstacles to price discovery, and the dissemination of information within a framework of transparency; II) that, through regulation, it is sought to eliminate information asymmetries through disclosure mechanisms that allow market participants equitable access, ensuring that all economic agents make decisions in a context of transparency; III) that it is key to the development of the domestic foreign exchange market to strengthen current access mechanisms, in accordance with transparency and equity standards.

ATTENTIVE: to the above, to the provisions of Article 1 of Law No. 12,670 of December 17, 1959, to Articles 7 letter G) and 25 of Law No. 16,696 of March 30, 1995, as amended by Article 5 of Law No. 18,401 of October 24, 2008, to Articles 2 and 19 to 21 of Law No. 18,573 of September 13, 2009, to the opinion of the Legal Advisory No. 2023/0375 of September 29, 2023, to the report by the Advisory Commission on Rules in Act No. 1 of January 22, 2024, to the report by the Manager of Economic Policy and Markets on January 26, 2024, and other background documents appearing in file No. 2020-50-1-1055,

IT IS RESOLVED:

1. Modify Article 1 of Book I – Foreign Exchange Operations, of the Compilation of Operating Rules, effective from March 1, 2024, which shall be drafted as follows:

Article 1 (FOREIGN EXCHANGE MARKET). It is composed of the Central Bank of Uruguay, banks, financial houses, external financial institutions, financial intermediation cooperatives, exchange houses, and financial services companies when carrying out the following operations: a. Purchase and sale of foreign currencies and banknotes; b. Arbitrage; c. Swap; d. Purchase and sale of precious metals; e. Issuance and acquisition of sight payment orders in foreign currency; f. Sale of traveler's checks; g. Purchase and sale of currencies whose reciprocal performances will be executed at a future date at a predetermined exchange rate (foreign exchange futures market).

Only the companies referred to in the preceding subsection may habitually and professionally carry out the operations mentioned in that subsection.

Additionally, the following may participate in the foreign exchange market:

• For the purposes of the operations provided for in letters a), b), and c), pension savings fund administrators (on behalf of the fund they administer), the trustee of the social security trust created by Law No. 19,590 of December 28, 2017 (on behalf of the fund they administer), and insurance companies providing coverage in the pension insurance branch.
• For the purposes of the operations provided for in letter g), pension savings fund administrators (on behalf of the fund they administer), the trustee of the social security trust created by Law No. 19,590 of December 28, 2017 (on behalf of the fund they administer), insurance companies providing coverage in the pension insurance branch, stock exchanges, and stockbrokers.

The Manager of Economic Policy and Markets may expand the list of entities that can participate in the foreign exchange futures market solely for the purpose of carrying out operations on their own account.

2. Modify Article 155.8 of Book XII – Information, of the Compilation of Operating Rules, effective from March 1, 2024, which shall be drafted as follows:

Article 155.8 (INFORMATION TO BE REPORTED ON OVER-THE-COUNTER FOREIGN EXCHANGE MARKET OPERATIONS). Institutions authorized by the Central Bank of Uruguay to operate in the foreign exchange market must report over-the-counter foreign exchange market operations concluded for the purpose of registration in one of the institutions that administer formal trading venues and have been authorized for such purposes, in accordance with the instructions to be issued.

This obligation extends to the operations defined in letters a), b), c), and g) of Article 1, of Book I – Foreign Exchange Operations, concluded between:

• institutions authorized by the Central Bank of Uruguay to operate in the foreign exchange market, in accordance with the provisions of Article 1, of Book I of this compilation;
• institutions authorized by the Central Bank of Uruguay to operate in the foreign exchange market and institutions that do not form part of it, in accordance with the provisions of Article 1, of Book I of this compilation, provided that the concluded operation exceeds the amount to be established in the instructions to be issued.

3. Entrust the Manager of Economic Policy and Markets with communicating the provisions herein through Circular.

(Session of today - Act No. 3691) (File No. 2020-50-1-1055)

Jorge Christy General Secretary

Aar/am/ds

Publishable Resolution Ref. No.: D-24-2024 Signatory: Jorge Eduardo Christy Davies Date: 31/01/2024 18:14:33 File No.: 2020-50-1-01055 D-24-2024.pdf Folio No. 228 CIRCULAR NO. 2446