Bolsas y Mercados Argentinos announced its incorporated short selling as a new type of operation and has also updated the conditions of securities loan transactions, which will be in accordance with best international practices and regulations, promoting the possible re-entry of our country to emerging market status, according to a company statement.
Both transactions may be performed on the Millennium platform used by BYMA, within the secondary trading environment, under the price-time priority modality, and with the administration of guarantees by BYMA, which acts as a central counterpart guaranteeing the settlement of these operations at the due date.
The Short Sale modality strengthens and expands the cash operations, and especially futures and options, by generating the implementation of arbitrage strategies, enabling a greater participation of both local and international investors. Investors can sell transferable securities of equities and fixed income, which they do not have in their investment portfolio, obtained in “Loan” in the same trading session.
BYMA also updated the negotiation conditions and relaunched its use incorporating the “Securities Loan” operation in normal cash. With this operation of “Securities Lending”, investors can obtain an additional yield on a portfolio of negotiable securities while allowing a further development of the options market. The continuous risk monitoring and control system implemented by BYMA will help detect abusive practices and the accumulation of short open positions, which may generate a systemic risk for the market.