ARGENTINA Law and Practice Contributed by: Santiago J. Mora, Nicolas Garfunkel, Milagros Caneda and May Steward, GPG Advisory Partners
7. High-Frequency and Algorithmic Trading 7.1 Creation and Usage Regulations The creation and use of these technologies in Argen - tina are regulated by the markets and exchanges that operate in the country as part of the self-regulating powers granted by the CML and CNV regulations. Accordingly, such technologies must comply with the applicable market rules which reflect and implement CNV principles, including prohibitions against market manipulation, fraudulent transactions and other abu - sive practices. CNV regulations specifically delegate to each mar - ket and exchange the drafting of the rules and reg - istry applicable to market makers. CNV regulations only stipulate certain minimum requirements that the markets must follow when issuing the rules that regu - late the activity. In 2023, the CNV issued Resolution 951/2023, which incorporated amendments to the regulation for market makers. Certain broker dealers are allowed to perform as market makers under cer - tain conditions specified in the regulation. Each mar - ket must have a registry of its market makers. Market makers can only operate in this capacity for instru - ments they are authorised to handle by the respective market. 7.3 Regulatory Distinction Between Funds and Dealers 7.2 Requirement To Be Licensed or Registered as a Market Maker When Functioning in a Principal Capacity In Argentina, the regulations do not distinguish between funds that engage in these activities and dealers engaged in these activities. 7.4 Regulation of Programmers and Programming There is no specific regulation regarding the creation of trading algorithms and other electronic trading tools. These kinds of tools are subject to the regulations set forth by each of the markets and exchanges that oper - ate in the country as part of the self-regulating powers granted by the CML and CNV regulations, as well as the general rules of the CCC and the IPL.
Likewise, a functionally equivalent framework applies to PSAVs under CNV Resolutions No 1069, 1081 and 1087, within the regime governing the tokenisation of negotiable securities (see 1.1 Evolution of the Fintech Market ). 6.6 Rise of Peer-to-Peer Trading Platforms The rise of peer-to-peer (P2P) trading platforms sig - nificantly impacts both traditional financial institutions and fintech players. By reducing or entirely eliminat - ing the role of intermediaries, these platforms lower commissions and make services more affordable. This creates competition for traditional banks and fintech companies offering digital exchange services, as P2P platforms operate with lower costs by avoiding tradi - tional infrastructure. A key challenge lies in the regulatory framework. In Argentina, P2P trading platforms are not specifically regulated, which poses risks for investors who have less protection due to the absence of a defined legal framework. 6.7 Rules of Payment for Order Flow In Argentina, the practice of payment for order flow is not well regarded as this could affect market transpar - ency and would be contrary to the duty of loyalty and diligence owed to investors. In this regard, see 6.8 Market Integrity Principles . 6.8 Market Integrity Principles The CML recognises the following principles: • investors’ protection and the prevention of abuses; • the need for small and mid-cap companies to have access to the capital markets; • simplification in the negotiation process to achieve greater liquidity and competition; • systemic risk reduction; • capital markets’ integrity and transparency; and • financial inclusion. Within this context, the following are considered con - trary to market integrity: • abuse of privileged information; • data manipulation and deceit in the market; and • unauthorised intervention in public offerings.
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