KDPW_CCP is a modern clearing house and clears transactions using a range of mechanisms which reduce the risk of counterparty default on a systemic basis. Thanks to its new tools (including securities netting, development of the clearing guarantee system, and KDPW_CCP’s participation in securities lending as the loan return guarantor), KDPW_CCP is ready to compete effectively with European clearing houses. The standardised solutions used by the KDPW_CCP clearing house support dynamic development of the scope and areas of provided services. The creation of KDPW_CCP has made a positive impact on the international position of the Polish capital market and has been welcome by rating agencies, especially owing to reduced counterparty risk. The implemented modifications have been strongly supported by the Polish financial market infrastructure community. The creation of KDPW_CCP follows a decision of the Polish Financial Supervision Authority (KNF) approving the position of KDPW_CCP’s capital in the clearing guarantee system and a cap imposed on clearing members’ liabilities under additional contributions to the clearing fund. The capital of KDPW_CCP may be used to support the clearing of transactions executed on the regulated market. As of its launch, KDPW_CCP has been equipped with important features of a clearing house:

Separate legal entity 

In line with international standards, as risks of a CCP clearing house are different than risks of the core business of a central securities depository (KDPW), it was necessary to establish a separate legal entity to provide clearing house services: KDPW_CCP.

Guaranteeing the clearing of transactions

As an important feature, KDPW_CCP is equipped with capital which can be used in the clearing guarantee system, thus reinforcing the safety of clearing. KDPW_CCP’s capital is PLN 100 million and can be used as one of the resources of the clearing guarantee system.

Capped additional contributions of members to the clearing fund

The creation of KDPW_CCP allows to cap maximum additional contributions to the clearing fund at 110% of the member’s basic contribution. The cap allows members to assess the risks of participation in the clearing guarantee system.