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The settlement cycle for instructions sent by KDPW_CCP for settlement to KDPW will change from T+3 to T+2 as of 6 October 2014. The change of the settlement cycle to the T+2 standard harmonises the Polish market with the standards under implementation in the European Union and follows from the harmonisation of the rules applicable on the Polish market with CSDR (Regulation of the European Parliament and of the Council on improving securities settlement in the European Union and on central securities depositories).

The introduction of the uniform rules on the T+2 settlement cycle in the European Union is an element of a far-reaching reform aiming to eliminate barriers in order to improve the efficiency of clearing and settlement and to mitigate counterparty risk. The new rules will apply to transactions concluded on the exchange regulated market and in the alternative trading system (ATS) secured with the clearing guarantee system.

Financial instruments subject to the T+2 settlement cycle (previously T+3):
  • Shares,
  • Rights to shares,
  • Depository receipts,
  • ETFs,
  • Investment certificates.
The settlement cycles of other instruments remain unchanged.
 
Timetable of the change of the settlement cycle for instructions sent by KDPW_CCP for settlement to KDPW:
Transaction date                                Settlement date                     Settlement cycle

2 October (Thursday)

7 October (Tuesday)

T+3

3 October (Friday)

8 October (Wednesday)*

T+3

6 October (Monday)

8 October (Wednesday)*

T+2

7 October (Tuesday)

9 October (Thursday)

T+2


*Settlement instructions for transactions concluded on 3 October and 6 October, respectively, will be sent by KDPW_CCP for settlement to KDPW with a settlement date of 8 October. For KDPW_CCP participants, the change implies a shorter period of maintaining margins for clearing positions. The shorter settlement cycle will also have a positive impact on investors. Transactions will be closed within a shorter period of time: investors will receive securities (buyers) and cash (sellers) sooner. The new settlement cycle will also have an impact on processes of the exercise of rights attached to securities, which will be transferred 1 day earlier than before. The same concerns the purchase/sale of shares on the last settlement days of the year where such operation affects tax returns.
For dual-listed companies, a settlement cycle on the Polish market which is identical to that used in most European markets will have a positive impact on the record dates of payments from securities, in particular dividends. Thanks to the synchronised settlement cycle, securities will be marked as “ex-date” on the same day on the Polish market and on foreign trading platforms. Consistent information is crucial to the perception of the Polish market by investors present on more than one market, especially involved in arbitrage in such stocks.

Last modified: 26-05-2014 Go up