PERU Ministry of Economy and Finance
SMV
Superintendency of the Market in Securities
"Decade of Equal Opportunities for Women and Men" "Year of the Bicentennial, of the consolidation of our Independence, and of the commemoration of the heroic battles of Junín and Ayacucho"

SMV Resolution No. 006-2024-SMV/01

Lima, 23 May 2024

WHEREAS:

File No. 2024020729 and Joint Report No. 663-2024-SMV/06/10/12 of 21 May 2024, issued by the Office of Legal Counsel, the Deputy Superintendency of Prudential Supervision and the Deputy Superintendency of Research, Development and Innovation, by which the amendment of the Regulations for Operations on the Stock Exchange Floor of the Lima Stock Exchange is proposed;

CONSIDERING:

That, article 145 of the Single Ordered Text of the Securities Market Law, approved by Supreme Decree No. 020-2023-EF, states that the Superintendency of the Securities Market – SMV approves the bylaws of the exchanges and their amendments; as well as the internal regulations issued by the exchanges and their respective amendments;

That, by Conasev Resolution No. 021-99-EF/94.10, the Regulations for Operations on the Stock Exchange Floor of the Lima Stock Exchange was approved;

That, the Lima Stock Exchange S.A. requested the amendment of article 76 and of the supplementary provisions of articles 9, 21, 49 and 49-B of the Regulations for Operations on the Stock Exchange Floor of the Lima Stock Exchange, with the purpose of reducing the settlement period for cash transactions with equity securities corresponding to the foreign securities segment (RV3), from a T+2 period to T+1, in accordance with the migration process towards T+1 same-day settlement undertaken by the markets of the United States and Canada;

That, in this line, the following clarifications are mainly made for the case of transactions with securities of the foreign securities segment: (i) in the case of the Integrated Market, the transaction may be modified until the first day after it was made (T+1), in the event that the information of the final holders of the transaction has not yet been sent to the ICLV; (ii) in the case of short sales transactions made with such securities, the periods are reduced for the intermediary to inform the ICLV about the constitution of guarantees and for this entity to inform in turn the Lima Stock Exchange and the Superintendency of the Securities Market about compliance and non-compliance in relation to the constitution of such guarantees; and, (iii) in the cases of forced execution under the periodic negotiation modality, the maximum settlement period shall be one (1) day, including the case of forced execution of repurchase transactions under the referred modality, when the principal or guarantees are made up of foreign securities;

That, the Lima Stock Exchange S.A. accredited having complied with the dissemination of the regulatory proposal on its institutional website for a period of ten (10) business days, as well as with the other requirements established for the

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amendment of the internal regulations of the stock exchanges, in accordance with the provisions of articles 8 and 10 of the General Rules of the Stock Exchanges, approved by Superintendent Resolution No. 021-2020-SMV/02;

That, having evaluated the documentation submitted, it has been verified that the Lima Stock Exchange S.A. has complied with the requirements set forth in articles 145 and 146 of the Single Ordered Text of the Securities Market Law, approved by Supreme Decree No. 020-2023-EF; articles 8 and 10 of the General Rules of the Stock Exchanges, as well as in the Single Text of Administrative Procedures of the Superintendency of the Securities Market, approved by Superintendent Resolution No. 023-2015-SMV/02, applicable to this procedure; as developed in Joint Report No. 663-2024- SMV/06/10/12; and,

In accordance with the provisions of article 1, literal a), and article 5, literal b), of the Single Concorded Text of the Organic Law of the SMV, approved by Decree Law No. 26126; article 9, numeral 7 of the Regulations of Organization and Functions of the Superintendency of the Securities Market, approved by Supreme Decree No. 216-2011-EF; article 145 of the Single Ordered Text of the Securities Market Law, approved by Supreme Decree No. 020-2023-EF, as well as what was agreed by the Board of Directors of the Superintendency of the Securities Market, in its session of 22 May 2024;

IT IS RESOLVED:

Article 1°.- To approve the amendment of the last paragraph of numeral 76.7.4 of article 76 of the Regulations for Operations on the Stock Exchange Floor of the Lima Stock Exchange, approved by Conasev Resolution No. 021-99-EF/94.10, in accordance with the following wording:

“Article 76.- Proposals and Orders from Foreign Intermediaries (…) 76.7.4 (…) In addition, in order to comply with the settlement of the transaction, the transaction may be modified until the second day after it is carried out (T+2); except in the case of transactions with securities from the foreign securities segment, where the transaction may be modified until the first day after it is carried out (T+1), and provided that they do not exceed the settlement day, when the Foreign Securities Depository has not sent the information of the final holders of the Informative Reflected Registry of the transactions traded on the Integrated Market and the SAB must reassign the transaction to another holder and/or Direct or Indirect Participant.”

Article 2.- Approve the amendment of the complementary provision of article 9 and of numeral 4 of the complementary provision of article 21 of the Regulation of Operations on the Stock Exchange of the Lima Stock Exchange, approved by Conasev Resolution No. 021-99-EF/94.10, in accordance with the following wording:

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“COMPLEMENTARY PROVISION TO ARTICLE 9 CASES AND PROCEDURE FOR THE MODIFICATION OF TRANSACTIONS CARRIED OUT ON THE STOCK EXCHANGE

In cash transactions with shares, securities representing rights over shares, securities representing debt and securities representing debt in the Money Market, the Markets Directorate may authorize the modification of transactions, duly substantiated (*):

• Until 17:00 hours of the day following its execution (t+1) in the case of domiciled investors.

• Until two days following its execution (t+2) in the case of non-domiciled investors or when the transaction includes securities listed on more than one market.

For cash transactions with securities belonging to the foreign securities segment, the Markets Directorate may authorize the modification of transactions, duly substantiated until 10:00 hours of the day following its execution, that is, at (T+1) and prior to the execution of the settlement process (*).

Modifications in cash transactions with shares, securities representing rights over shares and securities representing debt may only include:

• Reduction of the traded quantity.

• Extension of the term in case of excess sale.

The selling company must register as the selling principal of such excess, and must buy the shares and deliver them within the term agreed with the buying company. The agreed term must be communicated in writing to the Markets Directorate until 17:00 hours of the date the transaction was carried out.

In securities representing debt in the Money Market, modifications may only include:

• Reduction of the traded quantity

• Modification of the settlement date

• Modification of the term

Likewise, the Markets Directorate may authorize the annulment of transactions until 17:00 hours of the same day of their execution, informing the General Superintendence of Supervision of Entities and the ICLV, provided that the request:

• Is duly substantiated; and,

• Contains the signature of an authorized representative of both companies as a sign of conformity.

In repurchase transactions with shares, repurchase transactions with debt instruments and stock loan transactions, the annulment and modification may be authorized until 17:00 hours of the day of their execution (*).

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In share repurchase transactions, repurchase transactions with debt instruments and stock loan transactions, modifications may only include:

• Reduction of the traded quantity

• Modification of the assets agreed as margin of guarantee of the repurchase (in the case of share repurchase transactions)

• Modification of the assets agreed as additional guarantee of the loan transaction (in the case of stock loan transactions)

• Modification of the term

• Modification of the settlement date

In the case of transactions involved in a day trade buy-sell strategy with shares and securities representing rights over shares, if a modification is requested, only the traded quantity may be reduced up to the quantity not involved in the day trade strategy.

If the Markets Directorate authorizes a reduction for a greater quantity, the ICLV must communicate it immediately, so that the Markets Directorate proceeds to revoke said authorization.

(*) Prior conformity of the parties through email, directly in the trading system or in the correction system implemented by the Lima Stock Exchange. This information must be communicated to the General Superintendence of Supervision of Entities and to the ICLV.”

“COMPLEMENTARY PROVISION TO ARTICLE 21 SHORT SALES FOR CASH WITH SHARES AND SECURITIES REPRESENTING RIGHTS OVER SHARES

(...)

4. Guarantees of the Transaction

The Investor who carries out a short sale must maintain, from the execution of the transaction until its settlement, a minimum guarantee equivalent to 50% of the transaction amount. The constitution of the aforementioned guarantee is not required in cases where the short sales are to be settled with securities from securities lending transactions or securities purchases made on the same trading day.

The guarantee must be constituted with assets eligible to be delivered as margin collateral in repurchase and securities lending transactions, applying the same valuation criteria established in the corresponding rules.

4.1 In the case of cash transactions with shares and securities representing rights over shares, with the exception of the foreign securities segment, which is regulated in numeral 4.2., the following shall apply:

a) The intermediary must inform CAVALI no later than 16:00 hours on T+1 that the guarantees of the transaction have been constituted.

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b) The intermediary shall keep a detailed record of said notifications with the respective guarantees, as well as the supporting documentation thereof. In case of failure to inform in a timely manner, it shall be assumed by default that the guarantees have not been constituted.

c) At 16:30 hours on T+1 CAVALI shall inform the BVL and the SMV about the compliances and non-compliances in the constitution of the guarantee in accordance with the information provided by the intermediaries, so that the pertinent measures may be adopted for the case.

4.2 In the case of transactions carried out with securities belonging to the foreign securities segment:

a) The intermediary must inform CAVALI no later than 16:00 hours on the date on which the transactions were carried out (T+0), whether the guarantees of the transaction have been constituted.

b) The intermediary shall keep a detailed record of said notifications with the respective guarantees, as well as the supporting documentation thereof. In case of failure to inform in a timely manner, it shall be assumed by default that the guarantees have not been constituted.

c) CAVALI shall inform the BVL and the SMV, at 16:30 hours on the date of the transaction (T+0), about the compliances and non-compliances in the constitution of the guarantee in accordance with the information provided by the intermediaries, so that the pertinent measures may be adopted for the case.

CAVALI shall provide the BVL and SMV with the information received from the stock brokerage firms regarding the constitution of guarantees.”

Article 3°.- To approve the incorporation of subsection 4.8 to numeral 4 of the section Forced Execution of the complementary provision of article 49, and a numeral 9 to the last paragraph of the complementary provision of article 49-B of the Regulation of Operations on the Stock Exchange of the Lima Stock Exchange, approved by Conasev Resolution No. 021-99-EF/94.10, in accordance with the following wording:

“COMPLEMENTARY PROVISION TO ARTICLE 49

(…)

Forced execution

(...)

4. In case of deciding forced execution through periodic negotiation, the procedure shall be as follows:

(…)

4.8 The settlement of transactions carried out as forced execution through the periodic negotiation modality shall take place within a maximum term of two (2) days or, in the case of foreign securities, a maximum term of one (1) day.

(…).”

“COMPLEMENTARY PROVISION TO ARTICLE 49-B

(...)

On the Forced Execution Procedure in Repurchase Transactions under the periodic Negotiation modality: (…)

9. The settlement of transactions carried out as forced execution through the periodic negotiation modality shall take place within a maximum term of two (2) days or, in the case of the principal or guarantees made up of foreign securities, a maximum term of one (1) day. The differential obtained from the sale of executed securities and the total obligations involved to fulfill the repurchase transaction including commissions, legal interest, profit taxes, if applicable, and any other expense generated as a result of the execution; must be paid by the reported company no later than the settlement term of the last sale transaction derived from the forced execution of the repurchase transaction.”

Article 4°.- To publish this resolution in the Official Gazette El Peruano and on the Institutional Page of the Superintendence of the Securities Market on the Single Digital Platform of the Peruvian State (www.gob.pe/smv).

Article 5°.- To transcribe this resolution to the Lima Stock Exchange S.A.

Article 6°.- This resolution shall enter into force on 28 May 2024.

Register, communicate and publish

Zósimo Juan Pichihua Serna
Superintendent of the Securities Market

Signed by: GUTIERREZ OCHOA Omar Darío
Reason:

Signed by: SOTOMAYOR REDOLET Silvia Grimanesa F.
Reason:
Date: 23/05/2024 14:50:50

Signed by: PICHIHUA SERNA Zosimo Juan
Reason:
Date: 23/05/2024 20:07:11

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PERÚ Ministerio de Economía y Finanzas
SMV
Superintendencia del Mercado de Valores

"Decade of Equal Opportunities for Women and Men" Year of the Bicentennial, of the consolidation of our Independence, and of the commemoration of the heroic battles of Junín and Ayacucho

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