Abstract. In this paper, the variability of the Antarctic Circumpolar Current system produced by purely intrinsic nonlinear oceanic mechanisms is studied through a sigma-coordinate ocean model, implemented in a large portion of the Southern Ocean at an eddy-permitting resolution under steady surface heat and momentum fluxes. The mean transport through the Drake Passage and the structure of the main Antarctic Circumpolar Current fronts are well reproduced by the model. Intrinsic variability is found to be particularly intense in the Subantarctic Front and in the Argentine Basin, on which further analysis is focused. The low-frequency variability at interannual timescales is related to bimodal behavior of the Zapiola Anticyclone, with transitions between a strong and collapsed anticyclonic circulation in substantial agreement with altimeter observations. Variability on smaller timescales shows clear evidence of topographic Rossby-wave propagation along the eastern and southern flanks of the Zapiola Rise and of mesoscale eddies, also in agreement with altimeter observations. The analysis of the relationship between the low- and high-frequency variability suggests possible mechanisms of mutual interaction.