The Argentine securities regulator took decisive action on Friday by preemptively suspending Santander Valores, the brokerage arm owned by Banco Santander Argentina, from trading on the local stock exchange. The suspension was confirmed to EFE by the regulator’s spokespersons as a measure applied to the firm’s activities conducted with its own portfolio and in custody for third parties on the market.
Officials from the National Securities Commission (CNV) explained that the move followed a Friday operation that breached existing rules, with a notable breach of the thresholds regulators monitor closely. The issue centered on a purchase operation tied to the so‑called fiscal dollar, a vehicle widely watched for its impact on currency stability and market liquidity.
On Friday, Santander Valores was asked by CNV to furnish information to verify whether a client had complied with a rule limiting foreign exchange transactions in the domestic market on October 10. The regulator’s inquiry led to a finding that Santander Valores violated general resolution 981, a directive designed to curb excessive capital movements in the market. The resolution requires market participants to notify CNV at least five business days in advance of dollar purchases that exceed 200 million pesos, a threshold equivalent to roughly 538 thousand euros at the time of the official rate.
General resolution 981 sits within a broader regulatory framework aimed at reducing volatility in the so‑called financial dollar market. The rules apply to local and international investors, brokers, and large local players, mandating advance disclosure of substantial currency operations. Specifically, the regulation obliges market intermediaries to submit a sworn declaration to CNV if daily transactions exceed the 200 million peso limit, ensuring authorities can monitor and manage flows that could amplify price movements.
CNV stated that Santander Valores not only failed to provide the required five‑day notice but also engaged in operations well above the prescribed cap. In the stated view of regulators, the institution processed transactions surpassing the established limit, with a single customer facilitating moves amounting to around 4,000 million pesos. Such figures underscore the regulator’s concern about the potential for destabilizing shifts in local currency dynamics after spikes in foreign exchange demand.
Argentina’s policy framework restricts access to the official foreign exchange market and imposes a set of controls on foreign currency purchases within the financial system. The objective is to limit deviations between parallel exchange rates and the official rate, a policy stance intended to prevent abrupt currency devaluations and to steady market expectations. The disclosures point to a larger context in which the central bank and financial authorities monitor exchange activity to preserve financial stability amid currency pressures.
A CNV statement noted that Santander Valores requested information about the firm’s clients as part of the inquiry. The brokerage firm asserted that CNV’s administrative information request concerns duly documented operations and stressed its compliance with regulatory demands. Santander Valores also emphasized its robust controls, asserting that it maintains complete knowledge of the source of funds for all clients and all transactions, and that it adheres to all applicable regulatory requirements in its operations.
Banco Santander Argentina stands as a major pillar of the country’s financial system, boasting hundreds of branches and a broad customer base. The institution serves millions of clients and employs thousands of professionals, contributing significantly to the financial landscape. The current regulatory action against its brokerage subsidiary highlights ongoing scrutiny of market activities and the vigilance regulators maintain to safeguard the integrity of the capital markets in Argentina. This incident underscores how cross‑border mechanisms and domestic policy interact in a market that remains sensitive to currency movements and regulatory signals. The regulator’s actions are watched closely by investors and financial institutions alike, as they illustrate the balance regulators seek between liquidity, foreign exchange controls, and orderly price discovery on the local exchange. [CNV official communications]