KDPW_CCP Equity Raised to PLN 200 Million
Supervisory Board Appoints Management Board for a New Term
The General Meeting of Shareholders of the clearing house KDPW_CCP has decided to increase the Company’s share capital to PLN 200 million. This means that the equity of the clearing house is increased by PLN 100 million – additional resources supporting the multi-tier clearing guarantee system operated by the clearing house. The Supervisory Board has appointed the Company’s Management Board for the next term of office. Iwona Sroka has been appointed President of KDPW_CCP, Sławomir Panasiuk – Deputy President, and Michał Stępniewski – Management Board Member; they served in these functions during the previous term.
KDPW_CCP has been equipped with PLN 200 million of equity as an important step in the implementation of a project enabling KDPW_CCP to serve a new segment: the banking sector. It is also a measure preparing the company to obtain the status of qualified central counterparty (CCP) within the meaning of the Capital Requirements Directive (CRD) and to have the company authorised as a central counterparty under the draft Regulation of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories (EMIR). As of January 2013, the clearing house is planning to initiate the clearing and guaranteeing of OTC trade in derivatives and repos. “The new service addresses market demand and European Union regulations which provide for clearing of standard derivatives on the interbank market via CCP clearing houses,” said KDPW_CCP President Iwona Sroka.
KDPW_CCP in co-operation with the biggest Polish banks is preparing a new model of clearing and guaranteeing trade on the OTC derivatives market. “The project has entered the key implementation stage: in February, KDPW_CCP acquired from Nasdaq-OMX a risk management and OTC trade clearing module; we have also selected the confirmation platforms of banks’ OTC trade,” explained Iwona Sroka. The work on the final version of regulations governing the new services as well as technical (IT) documentation is approaching completion.
In the first phase, as of January 2013, KDPW_CCP will clear forward rate agreements (FRA), interest rate swaps (IRS) cleared in PLN, as well as repo transactions. As of January 2014, further classes of OTC derivatives will be cleared including fx swaps, fx options, interest rate options, and currency interest rate swaps (CIRS).
The clearing house KDPW_CCP was spun off from KDPW structure as a separate legal entity in July 2011. Its functions include the clearing of trade in cash instruments and derivatives on the regulated market and in the alternative trading system. In addition, KDPW_CCP manages clearing risk by means of a multi-tiered clearing guarantee system using among others the equity of the clearing house. The clearing guarantee mechanisms used by KDPW_CCP on the regulated market and ATS will also apply to trade in selected OTC derivatives sent for clearing to KDPW_CCP. This will greatly improve the safety of trade clearing and help to mitigate risks on the inter-bank market.