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Repo

Comprehensive processing of repo, buy-sell-back and sell-buy-back transactions (“repo”) by KDPW_CCP takes place in kdpw_otc, a clearing system dedicated to OTC trade.

Repo transaction - means a repo agreements or a sell/buy-back agreement, which fulfils the standard terms and conditions set out in the Detailed Rules of the OTC Clearing System, determined on the basis of a clearing instruction within the meaning of the Rules of transaction clearing (non-organised trading), consisting of an opening transaction and a closing transaction, under which one party transfers the ownership of specific securities within the meaning of these rules and subsequently buys them back while the other party pays for the securities and subsequently transfers the ownership of the securities back.

As a part of the service, KDPW_CCP working in partnership with the biggest Polish banks:
  • has developed an OTC trade clearing and guarantee model,
  • put in place an OTC trade clearing system,
  • launched the repo Confirmation Platform available to KDPW_CCP clearing members in OTC trade.
Repo transactions accepted for clearing are novated. From the moment of novation, KDPW_CCP becomes the buyer to each seller and the seller to each buyer.

Repo transactions accepted for clearing in KDPW_CCP are covered by a multi-tier clearing guarantee system which ensures effective repo settlement also in case of counterparty default. The OTC trade clearing guarantee system includes mainly individual margins, resources of the OTC default fund, as well as own capital of the clearing house KDPW_CCP.