Decree 1926/93 Futures Markets


Executive Order 1926/93 on Futures Markets

IN VIEW OF

File No. 539/93, of the NATIONAL SECURITIES COMMISSION Record, Executive Order No. 2284 of October 31, 1991, and Executive Order No. 600 of April 8, 1992; and

WHEREAS

The purpose of the National Government is to foster the markets’ growth in their various manifestations.

By means of Executive Order 2284/91, the powers of the former NATIONAL MEAT BOARD and of the NATIONAL GRAIN BOARD have been transferred to the Secretariat for Agriculture, Livestock and Fishery.

Likewise, in Sections 80 and 83 of Executive Order No. 2284/91, the NATIONAL EXECUTIVE granted to the NATIONAL SECURITIES COMMISSION the powers to authorize and regulate the public offering of forward contracts, futures and options within the national territory.

Executive Order No. 600 of April 8, 1992 authorized MERCADO A TERMINO DE BUENOS AIRES SOCIEDAD ANONIMA to include option transactions in forward contracts, establishing the SECRETARIAT FOR AGRICULTURE, LIVESTOCK AND FISHERY as the enforcement authority.

The nature of forward contracts, futures and options on products or by-products, representative indexes and rights thereof, gives rise to the concurrence of factors inherent to the public offering and to the listed product.

International experience shows that the control of these markets must focus on both aspects.

In view of the above, it is essential to limit and reconcile the functions assigned to the NATIONAL SECURITIES COMMISSION and to the SECRETARIAT FOR AGRICULTURE, LIVESTOCK AND FISHERY as regards authorization and control of transactions with forward contracts, futures and options on products or by-products, representative indexes and rights arising therefrom, with an agricultural and fishery nature, in order to jointly develop these instruments within the national sphere.

The undersigned is empowered to issue this Executive Order, by virtue of the powers granted by Section 86, Paragraph 1), of the NATIONAL CONSTITUTION, and by the provisions of Law No. 23,696.

Section 1: The NATIONAL SECURITIES COMMISSION shall authorize the operation of forward contracts, futures and options markets in all the territory of the Argentine Republic, approving their by-laws, internal rules of procedure, and operation and implementation mechanisms pursuant to the regulations adopted by the same with respect thereof. Without prejudice thereof, in any forward contract, futures and options on any product or by-product, representative index and rights arising therefrom, of an agricultural or fishery nature, the previous consent by the SECRETARIAT FOR AGRICULTURE, LIVESTOCK AND FISHERY shall be required in connection with the specific characteristics of the particular product.

Section 2: In exercise of its regulatory powers, whenever dealing with issues related to the specific nature of the underlying product of forward contracts, futures and options as provided by Section 1 of this Executive Order, the NATIONAL SECURITIES COMMISSION shall request the participation of the SECRETARIAT FOR AGRICULTURE, LIVESTOCK AND FISHERY. The opinion rendered by the SECRETARIAT FOR AGRICULTURE, LIVESTOCK AND FISHERY in said instances shall be binding.

Section 3: The SECRETARIAT FOR AGRICULTURE, LIVESTOCK AND FISHERY shall report to the NATIONAL SECURITIES COMMISSION about any fact related to the national and international production and marketing of any agricultural and fishery product and by-product. The SECRETARIAT FOR AGRICULTURE, LIVESTOCK AND FISHERY and the NATIONAL SECURITIES COMMISSION shall, within a period of SIXTY (60) days, start a program to promote and develop forward, futures and options markets, and to increase their use when trading with said products and by-products.

Section 4: Forward contracts, and futures and options markets on agricultural and fishery products and by-products operating upon the effective date of this Executive Order, are authorized as self-regulating markets and shall, in the future, be subject to the control of the NATIONAL SECURITIES COMMISSION in agreement with the provisions of Section 1 of this Executive Order. The NATIONAL SECURITIES COMMISSION shall adopt any regulation as may be necessary with the participation of the SECRETARIAT FOR AGRICULTURE, LIVESTOCK AND FISHERY, regarding the issues provided for by Sections 1 and 2 of this Executive Order.

Section 5: Executive Order No. 600 of April 8, 1992 is hereby repealed.

Section 6: This Executive Order shall be effective as of its publication in the Official Gazette.

Section 7: Be noticed, published, referred to the National Board of Official Registration and filed.

MENEM – CAVALLO


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