KDPW_CCP’s First Foreign Clearing Member ABN AMRO Clearing Bank N.V. live on the Warsaw Stock Exchange
ABN AMRO Clearing Bank N.V., KDPW_CCP’s first foreign participant, has started to clear transactions on GPW’s cash and derivatives market. As a general clearing member of the KDPW_CCP, ABN AMRO will open access to the Polish capital market for investors using the bank’s global post-trade services. Increase in the number of active investors on the Polish capital market will help to improve liquidity on GPW and grow the trading volume.
“The clearing of transactions on GPW by ABN AMRO Clearing will expand the pool of clients interested in trading instruments listed on GPW. We expect that the new clients will help to improve liquidity on the market to the advantage of all investors. ABN AMRO Clearing is a leader in the domain of post-trade services. The presence of GPW’s partners of its class on the Polish capital market proves the growing importance of our market to investors world-wide,” said Małgorzata Zaleska, President of the Management Board of GPW.
International investors have demanded access for non-domestic clearing entities to the clearing house KDPW_CCP and the Warsaw Stock Exchange and to align with international clearing practice. To address investor needs a major project was put into place which now allows ABN AMRO Clearing to process cleared transactions on the Polish market.
ABN AMRO Clearing is a global leader in the domain of clearing and a provider of post-trade services, and has a strong client base of active liquidity providers and principal trading groups.
“ABN AMRO Clearing Bank enters the Polish market owing to development initiatives implemented by KDPW_CCP mainly in order to improve the scale and liquidity of the market. The Polish authorised clearing house already offers attractive professional services based on the highest international standards,” said Iwona Sroka, President of the Management Board of KDPW_CCP.
“Becoming a general clearing member in KDPW_CCP is the result of strong client demand. The clearing of Polish securities and derivatives adds to our global offer of post-trade services. Investing to bring new trading opportunities to our clients underpins our commitment to make our clients globally competitive,” said Jan Bart de Boer, Global Chief Commercial Officer and member of the Board at ABN AMRO Clearing.
The activity of ABN AMRO on the Polish market is possible owing to a range of implemented development projects. These developments have launched post-trade services on the Polish market in line with the international regulations and practice of well-developed capital markets. The clearing house KDPW_CCP has among others increased its capital to PLN 228 million, introduced financial instrument netting, developed a clearing guarantee system and put in place international communication standards. KDPW_CCP is now well prepared for competition with European clearing houses.
“With a view to the growth of the capital market and all its members, the KDPW Group launched the netting functionality last year. As a result, the cost of clearing for KDPW participants decreased by approximately PLN 20 million. The goal of the change was to stimulate investor activity, enhance market liquidity and the volume of trade, including in particular the development of domestic investment firms,” said Iwona Sroka.
Last year, KDPW_CCP in collaboration with GPW launched the Risk Management Access (RMA) application created by GPW for all entities which clear transactions on the exchange. RMA allows all clearing members and brokers who provide clearing services to define maximum limits on the value of orders entered by an exchange member whose transactions it clears. The RMA application allows users to configure filters and offers a Kill Switch functionality which blocks new orders of an exchange member and cancels the member’s orders already on the order book.