Investor Protection code


Table of Contents


Chapter I Subjects
ChapterII Information
Chapter III Protection to the Investor
Chapter IV Rules of Ethics and Commercial Conduct
Chapter V Market Rigging
Chapter VI Duty to Maintain Confidentiality
Chapter VII Prohibition of Unauthorized Intervention in Public Offers
APPENDIX TO ARTICLE 5º Report Explaining the Code to Protect the Investor (CPI)


INVESTOR PROTECTION CODE AND RULES OF ETHICS AND COMMERCIAL
CONDUCT FOR OPEN MARKET AGENTS



Chapter I



Subjects


  • Article 1º.- Subjects.

  • MAE Agents and the people who work with them, either associated, contracted or on payroll, shall comply with the following rules of ethics and commercial conduct.

    Chapter II



    Information


  • Article 2º.- Occasional Information.

  • Agents shall inform MAE immediately and widely about any unusual fact important enough as to affect their normal operations or their responsibility, or influence investment decisions. This information shall be published by MAE when MAE considers it necessary for market transparency.

  • Article 3º.- Information to the Public.

  • MAE agents shall exhibit in their offices, in boards, glass cases or transparencies located in a clearly visible place, the following information:

    a. MAE Resolution accrediting them as Agents.

    b. List of Open Market Agents, with name and address.

    c. The commission system and any other expense, tariff, tax, fee or contribution to be received or withheld by the Agent for operations on commission.

    d. The statement that all operations are only backed by the Agent's equity responsibility.

    e. . A notice stating that there is available for the public a computerized information system for free consultation, showing the information that can be obtained, and precise instructions to access it through the screens.

  • Article 4º.- Advertising

  • MAE Agents' advertising, commercials and diffusion in any media shall not contain declarations, allusions or descriptions that may lead the public to mistakes, misunderstandings or confusion about the nature, price, return on investment, rescues, liquidity, guarantees or any other characteristic of MAE or issuers' marketable values or any other species. Violation of this duty shall be sanctioned according to the procedure stipulated in MAE Regulations, Book Vi, Chapter I. The sanction shall be published in MAE bulletin and in a high circulation newspaper along the country at the expense of the offender.

    Chapter III



    Protection of Investors


  • Article 5º.- Opening an Account

  • Agreements with clients referring to opening of accounts shall at minimum include the following information:

    1. Complete information about the client, pursuant to Article 55, of MAE Regulations.

    2. Details of operations to be conducted through the agent that require previous authorization by the client, or, if applicable, if the Agent shall have a general authorization.

    3. Description of every (general and/or exceptional) cost to be paid by the client involved in various operations (from agreement to settlement), time period, and, if applicable, how updated information about these issues can be accessed.

    4. Agent's right to request a partial or total advance payment, or total or partial blockage of balances available in the client's account as a condition for any operation.

    5. Agent's right to close client's account and liquidate open positions, which are understood as any long or short position taken by the client that is pending liquidation or to be liquidated in any future term, with details of notice, time periods and notification required to cash these shares.

    6. Agent's right to cash any balance, both in currency and in stock, to the order of the client to cover operations conducted but unfulfilled by the client at maturity.

    When the agreement to open the account is signed, the Agent shall provide the client with a copy of the Explanatory Report that is attached to this Code, as an Appendix to this article. The fact that the client received this information shall be recorded in writing in the same file, or in any other manner that certifies it. />

  • Article 6º.- Principal's Risk Profile or Risk Tolerance

  • With the aim of providing the appropriate service, Agents shall endeavor to acquire a good knowledge of their clients, particularly with reference to experience in the capital market, purpose of the investment, and financial situation.

  • Article 7º.- Responsibility.

  • After complying with the above mentioned requirements, the decision and responsibility to invest or not to invest lies solely with the client.

    Chapter IV



    Rules of Ethics and Commercial Conduct


  • Article 8º.- General Principles.

  • The people covered by Article 1 above shall display an exemplary behavior in their business activities, based on principles of a good businessman, with particular emphasis on the trust deposited on them. They shall stick to fairness and transparency in their transactions, prudence and diligence when conducting operations for their clients, and apply resources and procedures efficiently to attain the correct results.

  • Article 9º.- Special Behavior Required.

  • Subjects covered by Article 1 above shall particularly observe the following particulars:

    1.The Agent shall provide the client with all non reserved information that is available and accessible to adopt the decision to invest or not to invest in marketable, public or private, securities in the local market.

    2.The Agent does not advise, nor he recommends to buy or sell any public or private marketable securities, unless otherwise stated in the agreement to open the account, or that the Agent has a general authorization.

    3. Should the Agent offer advise after a request from the client, the advice shall be fair.

    4.Agents shall distinguish clearly with they operate on their own account or on behalf and to the order or third parties.

    5.Agents shall implement operations by means of receipts, in such a way that the nature of the contract is faithfully reflected.

    6.CAgents shall inform MAE and CNV any financial, family or any other third party connection which may give rise to a conflict of interests with the client.

  • Article 10º.-

  • When conducting operations in the market for their own portfolio, MAE agents shall refrain from any misleading practices that may affect in any way their clients' consent.

  • Article 11º.-

  • When Agents act on behalf and to the order of third parties they shall:

    1. Promptly carry out instructions received within the terms that they are given.

    2. Keep a record of all verbal or written instructions received, in such a way that the opportunity, amount, quality, price and any other circumstance connected with the operation are appropriately reflected to avoid confusion in the transactions.

    3. Give full priority to the interest of their clients, and refrain from any conduct that may harm them.

    4. Provide clients all relevant information regarding the authorized securities that are the object of the transaction, including the issuer or market, which may directly influence decisions.

  • Article 12º.- Authorization. Conflict.

  • When MAE agents conduct operations on behalf and to the order of third parties they may have a special or general written authorization to that effect. This authorization shall include at a minimum the following:

    1. content, scope, conditions, validity and early revocation and/or termination option clearly defined,

    2. accuracy of operations included,

    3. description of every (general and/or exceptional) cost to be born by the client involved in various operations (from agreement to settlement), explaining in every case if the costs are annual, fixed and/or variable, period of time covered, and where the client can get updated data for these items,

    4. records of marketable securities held before by the client,

    5. detail of the type of operation that is authorized, and if the authorized broker has to stick to the agreement when the client instructs an operation that is not detailed in the authorization, or with regards to marketable securities,

    6. detail of frequency and manner the client shall be informed about the characteristics of every investment or operation arranged and settled on his behalf, with a legend stating that the authorization does not guarantee any type or amount of return, and that investments are subject to market price fluctuations.

    In the event that a conflict arises between the agent and a client regarding the existence or characteristics of one instruction, MAE agent can enforce the pertaining written authorization signed by the client. The absence of this authorization shall imply, unless the contrary be proved, that the operations conducted on behalf of the client were not approved by him. Settlements of these operations are particularly important to evaluate the possibility of a conflict. Under no circumstances MAE agents shall demand from their clients a general authorization to operate on their behalf and to their orden.

    In the event the Client authorizes a third party, different from the Agent. to operate on his behalf, a general or special power of attorney shall be signed by the Client stipulating operating conditions.

  • Article 13º.- Assigning Operations.

  • Under no circumstances, agents acting on behalf and to the order of third parties shall:

    1. Assign to themselves an authorized marketable security when clients have requested it in identical conditions, or give preference to their own sales before those of clients, when clients have instructed to sell the same security in identical or better conditions.

    2. Assign orders to clients, or apply their own portfolio to clients without offering it in the negotiation system, during a reasonable time that shall be set by MAE Circular.

  • Article 14.- Performing Contracts. Subordination.

  • In cash operations, agents can subordinate compliance with instructions to proof of ownership of the marketable security that is the object of the transaction or delivery of funds to effect payment.

    In forward operations, performance of the contract can be subordinated to previous proof of guarantees or coverage to be set forth by MAE regulations, with CNV acceptance.

    Article V



    Market Rigging


  • Article 15º.- General Principles.

  • Subjects covered by Article 1 shall refrain from acting or behaving in a way tending to or allowing price or volume manipulation of marketable securities authorized for MAE listing, as well as forward or future contracts negotiated in MAE, or defraud any of those market players.

    Specially included in the above behavior are any act, practice or course of action intended to:

    1. Artificially influence price formation, quotations, liquidity or volume traded of one or more securities admitted in MAE listing. Transactions where negotiable securities or rights are not transferred, beyond their appearances, as well as those transactions designed to create a false appearance of existence of offer and demand or an active market, are excluded from this figure, even if negotiable securities or rights are actually transferred.

    2. Misleading any market player, which includes any false declaration given under the knowledge that it is incorrect or false, or that could reasonably be considered as such, as well as any essential information that is left out, which may lead to errors by those responsible for providing the information.

    Operations aimed a stabilizing the market, which fully comply with requirements set by CNV in this respect, shall not be considered part of the above mentioned conduct. />

    Chapter VI



    Duty to Maintain Confidentiality


  • Article 16º.- Confidentiality

  • Subjects covered by Article 1 that count with information about business development of a company with authorized public offering, and this information is important enough to affect market prices or negotiations or placement of marketable securities but has not been disclosed, shall keep strict silence about it.

    Chapter VII



    Prohibition of Unauthorized Intervention in Public Offers


  • Article 17º.- Prohibition of Unauthorized Intervention in Public Offers. />

  • Subjects covered by Article 1 shall adapt their activity to provisions set forth in this regard by CNV, and MAE as the case may be. They shall particularly refrain from:

    1. Intervening in any kind of public offer requiring authorization, if they lack that authorization.

    2. Buying, selling or conducting any type of operation with marketable securities, which because of their characteristics should be authorized for public offer, and this authorization was missing at the time of the transaction.

    3. Conduct marketable security operations expressly unauthorized by CNV and MAE.


    APPENDIX TO ARTICLE 5º



    Explanatory Report about the Code to Protect the Investor (CPI)


    MERCADO ABIERTO ELECTRÓNICO S.A.(MAE) was incorporated in 27 December 88, and started operating in March 1989. It was authorized by the Security Exchange Commission to act as a Self Regulating non-listed Entity by Resolution Nº 9934 of 26 December 1993. MAE self regulating character is provided for in Decree 677/01, Article 2.

    About Mercado Abierto Electrónico S.A. (MAE) and MAE Agents.

    It is an electronic market for fixed income Public Marketable Securities and Private Marketable Securities, such as Negotiable Debt, marketable securities representing debt, fiduciary debt certificates, among others, by-products of those certificates or indexes, and variable rent securities, such as certificates of participation or share of Closed End Investment Funds.

    Authorized and registered Agents operate in MAE connected to the SIOPEL system to confirm operations (all the Agents are listed in MAE web page www.mae.com.ar and also in CNV web page www.cnv.gov.ar ) />

    MAE keeps a record and confirms the operations conducted between the agents. These operations are recorded chronologically day by day. The information is provided to the Agents and general public in a daily summary of operations which states price, species and volumes.

    MAE's basic principles are: a) to reduce risk in every transaction; b) to maintain transparent price information, c) to record and confirm transactions conducted during the day.

    Guarantee on marketable securities traded in MAE.

    MAE does not guarantee registered operations. Backup and guarantee for operations conducted by Agents through the Electronic System lies exclusively on every Agent’s Net Equity. It should be noted that to become and remain an Agent in this Market, Agents must satisfy special equity requirements. In this sense, Agents shall evidence a Net Equity worth that today is $ 2,700,000.- Within that Net Equity Agents shall constitute a minimum counterbalancing equivalent to $ 1,700,000.- This counterbalancing shall comprise especially liquid public certificates (100%) deposited in a special account managed by MAE in Caja de Valores S.A., or by means of a bank guarantee (only up to 50%) and/or own property where business are conducted (only up to 50%), or a combination of both for the benefit of the client. Agents who are Financial Institutions actually meet those requirements provided they comply with equity requirements set by Banco Central de la Republica Argentina for each one of them, failing that, they shall comply with equity and counterbalancing requirements stipulated in the Regulations.

    How the Open Market Agent Works

    MAE Agents operate with their own portfolio when they buy from third parties for their portfolio or sell to third parties from their own portfolio. In all these cases Agents' utility derives from price differences, since it is a buy and sale operation, and not from commissions.

    MAE Agents can also operate on behalf and to the order of third parties (mandate), when they conduct operations on behalf and to the order of the client or other agents. In this case the Agent shall inform about the commission system, and any other expense, tariff, tax, fee or contribution received or withheld by the Agent for this kind of operations.

    The Agent shall state in the ticket where the operation is formalized his manner of operation.

    Agent's Duties and Investor's Rights General Principles

    General Principles

    When conducting business the Agent shall maintain an exemplary conduct based on the principles of good businessman as set forth by the Code to Protect the Investor and Rules of Ethics and Commercial Conduct for the Agents (CPI).

    Agent’s Duty to Inform.

    The Agent shall provide all the information available, but the Agent does not advise, nor he recommends buying or selling any security unless otherwise specifically stated in the Agreement with the Investor (CPI, Art 5), or if the Agent has a written authorization for general management, pursuant to CPI, Art. 9. The Agent shall provide access to the free consultation computerized information system, and indicate the information that can be accessed through it, in addition to the instructions to obtain the information.

    Investor’s Risk Profile and Risk Tolerance:

    Marketable securities that are the objects of buy/sell operations conducted in the Open Market involve taking certain risks that are characteristic of every species. Investors are recommended to obtain from their Agent the Issue Prospectus, and if applicable, the Program Prospectus, which detail inherent risks of the Market for a particular species, as well as full information about the Issuer, Trustee, Guarantees and other investment related issues. Investors are also recommended to consult the qualification reports issued by risk qualifying companies responsible for qualifying the issuer, provided those reports are to be found.

    On the first opportunity the client wants to operate, the Agent shall enter into an agreement to open an account. With a view to provide proper services, Agents shall endeavor to acquire a good knowledge of their clients, taking into account such aspects as experience in the capital market, purpose of the investment, and investor's financial situation.

    Special Conduct Standards for MAE Agents:

    The Agent shall keep a Registry of Clients with personal data, signature, personal information of staff authorized, if applicable, and their signatures. In the case of Financial Institutions, the above mentioned registry can be replaced by those pertaining to the activity.

    The Agent shall record every instruction from the investor, whether verbal or written, and proceed to execute them without delay.

    The Agent shall act fairly in all operations conducted with his investors.

    When the Agent acts on behalf and to the order of third parties, absolute priority shall be given to the interests of the client, and the Agent shall refrain from any conduct that may harm the client. In such cases the Agent may have a special or general written authorization from the client to operate on his behalf and to his order.

    Should written orders or authorizations be missing, it shall be presumed that the operations conducted by the Agent on behalf of the client lacked the client's consent.

    In cash operations, agents can subordinate compliance with instructions to previous proof of ownership of the marketable security that is the object of the transaction or to delivery of funds to effect payment.

    In forward operations, performance of the contract can be subordinated to previous proof of guarantees or coverage to be stipulated.

    Forbidden Conducts by Agents:

    In case the Agent acts on behalf of the client, the Agent shall not assign to himself any authorized species, when he has orders pending that were issued by clients in the same or better conditions.

    Neither shall the Agent prioritize the sale of marketable securities from his own portfolio when he has instructions to sell issued by clients in the same or better circumstances.

    Agents shall refrain from acting or behaving in a manner tending to or allowing price or volume manipulation of marketable securities, forward contracts, or MAE negotiations, or defrauding any of those market players.

    Inherent Risks to Agent's Non-Compliance:

    It should be noted that the relationship between Client and Agent is based on trust, ensuing from characteristics considered by the Investor, such as Agent's experience, background, equity responsibility, management, customized service, etc.

    The risk to the Investor could be that the Agent does not carry out the instruction received from the Client, or if fulfilled, the Agent does not comply with the deposit of marketable securities or funds in Client's sub-account.

    In every case, the Agent is solely liable for his own equity.

    Client's Rights - Claim in Case of Non-compliance by the Agent - Sanctioning Regime:

    Should the Investor notice non compliance by the Agent with regard to instructions given to conduct operations, the Client can lodge a complaint with MAE, on San Martin 344, Piso 18, Ciudad Autonoma de Buenos Aires, where the Client shall state the name of the Agent, prove his status as a Client, and submit a summary of the claim and evidence provided. MAE shall start a case to determine the facts, and basis of the complaint, and if applicable shall summon the Agent to correct his omission or non compliance.

    Should MAE detect any conduct that is contrary to the Regulations, MAE can conduct a preliminary investigation pursuant to Art. 104 of MAE Regulations, and sanctions provided therein can be applied: a) Warning; b) Fine; c) Up to 2 years suspension; d) Cancellation of registration as MAE Agent.

    MAE can, through the Board of Directors or the President of the Board of Directors, if applicable, and at the request of MAE Market Control and Supervision Commission or MAE Ethics Commission, apply without commencing proceedings measures set forth in Art. 105 of MAE Regulations, e.g.: a) Warnings; b) Notice to regularize non compliance situations within a fixed time limit to be set according to specific characteristics of every case; c) The requirement to adapt to a framework that shall be verified and controlled by independent auditors.


    (Agentes / Emisores pueden enviar desde aquí las Solicitudes Membresía- Negociación – Avisos – Información General)


    Registro de Contratos OTC
    (Registro de Contratos OTC – art. 10 Capítulo V, Título VI Normas de la Comisión Nacional de Valores (TO 2013))



    Cpa/Vta   Repo   Forex  
     


    Last 10 instruments traded*



    Get complete list » 
    * Prices per 100 of par value. ** Prices are denominated in the trading currency.


    MAE ARS Rate
    FechaIndiceValor
    23/05/2019 15:00PPN45.1067

    Ver Mas..

    Fideicomisos Financieros Obligaciones Negociables CEDEARs Títulos Públicos Acciones


    © 1997-2014 Mercado Abierto Electrónico S.A.

    Did you find a technical problem? report it Please, help us to improve our site