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Extension of Authorisation of the Clearing House KDPW_CCP

The Polish Financial Supervision Authority (KNF) has extended the authorisation of the clearing house KDPW_CCP to cover new classes of instruments and categories of acceptable collateral as of 9 August 2016. KNF’s decision allows KDPW_CCP to offer new services: the clearing of EUR-denominated instruments in organised trading (exchange market and ATS) and in OTC trade (interbank market), as well as the clearing of PLN-denominated OTC debt instruments. The extended authorisation of the clearing house allows it to accept collateral in EUR, including both cash and bonds.

KNF’s decision follows a positive opinion of the Authorisation College and allows KDPW_CCP to clear new instruments:

  • EUR-denominated interest rate derivatives in non-organised trading (FRA, IRS, OIS, Basis Swap);
  • EUR-denominated debt and equity instruments in organised trading;
  • PLN-denominated debt instruments in non-organised trading.

 

The College included representatives of the Polish Financial Supervision Authority (KNF), the National Bank of Poland (NBP), the European financial supervision authority ESMA, the French and Belgian supervisors (AMF, NBB), and the European Central Bank.

“The decision of the Polish Financial Supervision Authority, which follows a positive opinion of the international College, allows us to build national competences in EUR OTC derivatives clearing,” said Iwona Sroka, President & CEO of KDPW_CCP. “KDPW_CCP provides banks participating in OTC trade with a comprehensive and tailored offering of transaction clearing here, in Poland, in an authorised clearing house, both in the local currency and in EUR. Our advantages include offering such requirements for clearing house participants which are matched with the size of the local market, as well as compliance with European standards, high safety of clearing, and top quality of service which meets the international regulatory requirements,” said Iwona Sroka.

The Polish clearing house was authorised in April 2014 to clear PLN-denominated equity and debt instruments in organised trade and derivatives on the regulated and OTC market.
The participation of the top 16 banks in the OTC clearing system proves that the solutions offered by KDPW_CCP are attractive for entities active in the interbank market. The extension of KDPW_CCP’s authorisation to include EUR-denominated instruments opens the opportunity to further activate the OTC market as it enhances the transparency of trade and helps to foster confidence in the interbank market.

KDPW_CCP statistics

Number of KDPW_CCP participants (as at 30.06.2016):

  • Regulated market: 35
  • OTC: 16 (currently, 11 banks clear transactions in the OTC_Clearing system)
Trade cleared in H1 2016 – regulated market:
Cash market:
  • Number of cleared transactions: 9,374,863
  • Value of cleared transactions: PLN 87.68 billion (EUR 19.78 billion)
Derivatives market:
  • Number of cleared transactions: 1,645,641
  • Value of cleared transactions: PLN 97.34 billion (EUR 21.96 billion)
Trade cleared in H1 2016 – OTC:
  • Number of cleared transactions: 731
  • Value of cleared transactions: PLN 85 billion (EUR 19.11 billion)

 

Scope of KDPW_CCP services after the extension of authorisation - chart
Prepared by: KDPW_CCP

Extension of KDPW_CCP’s authorisation for EUR-denominated instruments: benefits for the market

Development of the national post-trade infrastructure (organised trade and OTC, PLN and EUR instruments), available to investment firms and banks active on the Polish market
Quality of service up to European standards, confirmed with European authorisation
Creation of EUR OTC derivatives clearing competences in Poland
High safety, effective systems of clearing and guaranteeing the clearing of transactions supported by functionalities of the authorised clearing house: KDPW_CCP becomes a counterparty to each transaction through novation; multi-layer transaction clearing guarantee system; risk management system
Mitigation of credit risks of OTC trade. According to the EU package: the Capital Requirements Regulation (CRR) and the Capital Requirements Directive IV (CRD IV), banks can apply lower capital requirements to transactions cleared in an authorised clearing house
Comprehensive offering of the Polish clearing house tailored to the needs of Polish banks: requirements and conditions for participants adequate to the size of the local market
Clearing of EUR-denominated instruments in KDPW_CCP: OTC derivatives, i.e., FRA, IRS, OIS, Basis Swap
EUR and eurobonds accepted as collateral in the clearing guarantee system
Reporting of derivatives trade to the KDPW_TR trade repository in the OTC_Clearing service (free of charge)
EUR OTC derivatives clearing services available throughout the European Union

 

The KDPW Group offers the broadest scope of post-trade services in the CEE Region, which is the same as that offered on developed markets and extends beyond traditional depository and clearing services. The KDPW Group offers services including registration of financial instruments, clearing and settlement, corporate action processing, data maintenance (including the trade repository), as well as numbering agency services (ISIN, FISN, CFI and LEI). It provides a complete, attractive service to Polish investment firms and foreign entities active on the Polish financial market. The confidence in the quality of service provided by the KDPW Group is best demonstrated by the first global participants of KDPW and KDPW_CCP:

  • Raiffeisen Bank International of Vienna, which was the first foreign participant to open an omnibus securities account with KDPW;
  • ABN AMRO Clearing Bank N.V., which was the first foreign entity to become a participant of the KDPW_CCP clearing system on the regulated market, opening access to the Polish capital market for investors who use the bank’s post-trade services globally.

 

Last modified: 22-08-2016 Go up