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Argentina tightens cap on bond trading used for FX

3 Min Read BUENOS AIRES, July 12 (Reuters) - Argentina’s securities regulator tightened rules on some bond trades on Monday, lowering a weekly limit on trading of local and international bonds amid a wider clampdown on alternative channels used to access foreign exchange. The measure from the National Securities Commission (CNV), published in the official gazette, halved the cap on weekly trades per account to 50,000 local law bonds and to the same level for international law bonds. In an easing move, it reduced the amount of time traders must hold the securities before reselling them to two business days, from three days previously, for “negotiable securities with settlement in foreign currency and in a foreign jurisdiction”.

UPDATE 2-Argentina stocks slide led by energy, banks after MSCI downgrade

(Updates index move) BUENOS AIRES, June 25 (Reuters) - Argentina’s S&P Merval stock index closed down some 2.7% on Friday after MSCI yanked the country’s emerging market status and reclassified it a “standalone” market over continued tough capital controls limiting accessibility for investors. Index provider MSCI said on Thursday it would reclassify the MSCI Argentina Index from Emerging Markets to Standalone Markets status during its November index review, due to the “prolonged severity of capital controls with no resolution.” Indices can funnel billions of dollars of tracking funds into developing economies. A status downgrade can spark forced selling by funds, hitting locally listed companies hard.

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