KDPW_CCP in co-operation with KDPW operates a negotiated securities lending and borrowing system designed to improve the liquidity of clearing and settlement of securities in the systems operated by KDPW_CCP and KDPW. The negotiated securities lending service is complementary with KDPW’s automatic lending system but compared to it ensures greater flexibility for the parties to define the terms of loans.
The role of KDPW_CCP is to clear loans and organise a clearing liquidity guarantee system including guarantees of the return of securities by the borrower and the return of contractual collateral by the lender based on the resources of the negotiated loan clearing liquidity guarantee system including own resources of KDPW_CCP. The function of KDPW is to match parties interested in a loan agreement and to perform resulting settlements.
The objective of the negotiated securities pending system is to prevent the suspension of settlement or elimination of suspension of settlement of transactions concluded in organised trading and to ensure the return of securities loaned in the automatic lending system. In view of the foregoing, the system is addressed to entities which also hold the status of clearing member in the transaction clearing system operated by KDPW_CCP S.A. or act as the settlement agent for participants holding such status in the system.
Participation in the negotiated securities lending system is voluntary.
The negotiated securities lending and borrowing service is available as of 1 October 2014.