KDPW and KDPW_CCP In 2012
In 2012, KDPW Group focused on the launch of new services expanding the offer available on the Polish financial market: OTC derivatives clearing by KDPW_CCP and KDPW’s trade repository. Last year also brought a new electronic communication channel for issuers, two further operational links with foreign securities depositories, and the launch of the hold-release service.
Towards European Regulations
The European Regulation EMIR has introduced the obligation to clear specific classes of OTC derivatives in specialised institutions: CCP clearing houses, as well as the obligation to report trade in derivatives to trade repositories. To address these regulations and market needs, the KDPW Group has designed solutions which comply with the requirements of EMIR.
The Transaction Clearing Rules (Non-organised Trading) came into force on 2 January 2013 when the service of clearing and guaranteeing OTC derivatives and repo trade was launched. The project which developed the service took almost two years and was conducted in close co-operation with Polish banks. In connection with its entry to a new market and clearing of a new range of transactions, the clearing house KDPW_CCP increased its capital from PLN 100 to 200 million, which allows it to safely manage risks including the new segment of the interbank market.
The clearing house KDPW_CCP offers promotional terms to those institutions which decide to join the clearing house in OTC trading by 20 March 2013. Those clearing members that become participants of the OTC clearing system by 29 March 2013 will be relieved of the Fee for an entry in the register of participants (PLN 50 thousand) and the Participation fee for the year 2013 (PLN 20 thousand).
The comprehensive launch of the new services required, among others, amendments of Polish legislation enabling the clearing house KDPW_CCP to operate as a central counterparty (CCP). Provisions of the Act on Trading in Financial Instruments effective as of 4 August 2012 have for the first time introduced the concept of novation in clearing to the Polish legal system. Thanks to novation, the clearing house becomes the central counterparty (CCP), i.e., the buyer for every seller and the seller for every buyer, taking over the mutual rights and obligations of the original parties to a trade.
Another important service is the recently launched trade repository which collects information on trade in derivative instruments. The trade repository went live on 2 November 2012.
Electronic Communication with Issuers
A dedicated online application available in the Issuer Service System since 14 May 2012 supports electronic exchange of corporate action information between KDPW and issuers of securities.
The new service covers selected corporate actions involving payment of entitlements from securities including dividend pay-out, advance dividend pay-out, payment of income from a closed-ended investment fund without redemption of investment certificates, interest payment, redemption of debt securities.
Appointment of the Management Board
The Ordinary General Shareholders Meeting of the National Depository for Securities convened on 19 June 2012 appointed Dr Iwona Sroka as President of the KDPW Management Board for a new term. Iwona Sroka was first appointed President of the KDPW Management Board on 30 July 2009. The Supervisory Board of KDPW also held a meeting on 19 June 2012. At the meeting, by motion of the President of the Management Board Dr Iwona Sroka, the Supervisory Board appointed to the Management Board of KDPW Sławomir Panasiuk as Deputy President of the Management Board and Michał Stępniewski as Management Board Member.
The Supervisory Board of the clearing house KDPW_CCP also appointed the Management Board of the Company for a new term. Iwona Sroka was appointed as President of KDPW_CCP, Sławomir Panasiuk as Deputy President, and Michał Stępniewski as Management Board Member; they all served in the same functions during the previous term.
The year 2012 brought two new operational links with foreign securities depositories: SIbex Depository in Romania and Latvian Central Depository in Latvia. KDPW now operates 19 links. The National Depository for Securities also signed a Memorandum of Understanding with the Central Securities Depository of the Azerbaijan Republic (RCDCB).
The kdpw-stream system offers a new functionality, hold-release, since 2 July 2012. The implementation of hold-release facilitates the process of matching settlement instructions, enables early matching and acknowledgement of the terms of clearing irrespective of the availability of cash or securities and, in case of participants for whom the availability of cash or securities is not critical, settlement will only require a single instruction.
Awards and Distinctions
The 18th year in business brought new awards and distinctions: the National Depository for Securities received the WEKTOR 2011 award for 20 years of perfect operation and supervision of the depository-settlement system and the targeted growth strategy which addresses current challenges. KDPW was named a top Polish innovator in the WPROST Weekly Innovator 2012 ranking while KDPW President and CEO Iwona Sroka was named a top three woman manager of 2012 in a WPROST Weekly ranking.