According to § 111 of the Rules of Transaction Clearing (Non-organised Trading), a participation agreement may be terminated:
- on request of a clearing member, effective two weeks from the date of the request, subject to performance of obligations under open positions or balances arising from the clearing of transactions registered in clearing accounts maintained for a participant;
- by agreement of the parties;
- on request of KDPW_CCP, effective immediately, in case of occurrence of an event of default.
According to § 113 of the Rules of Transaction Clearing (non-organised trading), in case of occurrence of an event of default on the part of the defaulting participant, KDPW_CCP is entitled to:
- terminate the participation of the defaulting participant;
- refrain from carrying out the participation agreement concluded with the defaulting participant in the procedure defined in § 121 of the Rules of Transaction Clearing (non-organised trading);
- refuse to accept further transactions for clearing where the defaulting participant would participate in clearing unless another participant holds the status of clearing member for such transactions and has been designated for their clearing;
Credits of KDPW_CCP and the participant whose participation has been cancelled, arising from the clearing of transactions accepted for clearing in the clearing system, to which the participant is a clearing counterparty, as well as in respect of its participation in such system, shall be netted by KDPW_CCP according to the rules and to resolutions of the Management Board of KDPW_CCP adopted under the rules. As a result of netting of mutual credits, KDPW_CCP shall have credits or debits, respectively, due to or from the participant in the amount outstanding after the performance of all actions aimed at meeting the liabilities of the participant in the system. Credits shall be cancelled at the instant that KDPW_CCP performs such netting and registers its result in its systems.
- on request of a clearing member, effective immediately, in case of occurrence of any of the following events:
- KDPW_CCP has not made a clearing payment or replacement payment within 45 calendar days after the day on which KDPW_CCP becomes obliged to make the payment to the clearing member (§ 111 subpara. 1 point 4 letter a) of the Rules of Transaction Clearing (non-organised trading),
- bankruptcy of KDPW_CCP has been declared or a motion for bankruptcy has been dismissed,
- the Management Board or the liquidator of KDPW_CCP has filed a motion for declaration of bankruptcy of KDPW_CCP,
- an entity which is a creditor of KDPW_CCP has filed a motion for declaration of bankruptcy of KDPW_CCP,
- KDPW_CCP is in liquidation,
- the Polish Financial Supervision Authority has decided to cancel the authorisation given to KDPW_CCP for the provision of clearing services as a CCP and the time limit for appeal measures has expired or such measures have been exhausted.
Participation agreement termination request Form No 17