Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 4

Each market must have clear rules assuring investor protection by safeguarding participants from the financial risks of failed settlement and ensuring that listed companies are required to follow sound policies on corporate governance, transfer of economic benefits and shareholder rights.

1.	Does the depository or the market have securities lending and borrowing schemes in place, and are these open to all market participants and their settlement agents?	The Merval has a securities lending and borrowing scheme in place. Direct access is reserved for Merval members; customers of broker-dealers and brokerage firms to have indirect access thereto.
2.	Does the settlement system mark fail trades to market and collect margin from the failing counterparty to protect the innocent counterpart's interest?	The Merval Settlement System calculates margins to be covered by the defaulting party.
3.	Does the market operate a guarantee fund or have an equivalent procedure to protect against the cost of failed transactions; and which sectors of the market does it cover?	The Merval has a Guarantee Fund which covers settlement between broker-dealers and brokerage firms, and a Special Fund which covers failed transactions by broker-dealers and brokerage firms vis-a-vis their customers.
4.	Are the stock transfer agents (share registrars) linked electronically to the depository?	Yes. The Merval has, in its capacity as trade settlement agent, electronic linkages in place with the Depository.
5.	Is there a legal maximum time period to complete ownership transfers in the books of the issuer? If so, does market practice adhere to the deadline?	Not applicable. Movements between participant accounts have no effect on the underlying records of the issuer.
6.	Are investors entitled to all benefits arising on a security from the point of purchase; and how are any rules enforced?	Yes, through the trade execution system which allows to register securities ownership by buyer and seller; such register being in charge of the Depository.
7.	Is proxy voting permissible in the market and can such proxies be lodged by post or other remote delivery method?	Proxies are permissible.
8.	Are there binding rules in the market stating the minimum and maximum lapsed time between the announcement and completion of key events, including registration, the calling of shareholder meetings, the payment of dividends or interest, rights issues, tender offers and other voluntary corporate actions?	Yes, binding rules in the market are provided for in Law 19550 (Companies Act), CNV registration requirements and BCBA stock-exchange listing requirements.
9.	Are all voluntary corporate actions advised through a central mechanism assuring consistent information to all investors?	The Bolsa de Comercio receives information on corporate events from all issuers, which later discloses and makes available to investors and other market players .
10.	Is information on corporate actions available electronically, and is the minimum lapsed time for responding to such actions sufficient to enable all domestic and foreign investors to respond in a timely and considered fashion?	The Bolsa de Comercio de Buenos Aires website contains the following information: real time prices, index, corporate events, financial statement events, etc.