The year 2022 was a challenging time for both the capital market and the economy as a whole as a result of the war that has been going on since 24 February in Ukraine. The biggest geopolitical changes since the end of the World War II are unfolding before our eyes, affecting the global economy and, consequently, the financial market. However, there is a spark of hope on the horizon for an end to the war and for plans to rebuild Ukraine, and the capital market should have a big role to play in this process.
Likewise, the year 2022 was a full of challenges and new projects for the KDPW Group, and both companies KDPW and KDPW_CCP successfully delivered.
In February 2022, changes were introduced to bring the KDPW Group in line with the settlement discipline requirements of the CSDR. A new system was implemented for calculating cash penalties for late settlement under the CSDR. This was a very complex undertaking, organisationally and technologically, involving all central securities depositories in Europe.
In recognition of the importance of information and data in today’s world, the KDPW Group Data Portal is constantly being developed and makes available a range of reports and statistics, including their automated distribution. Six new types of reports were offered to market participants this year. As a result, 28 statistical reports are now available, covering the KDPW Group’s activities as a central securities depository, clearing house, trade repository, and numbering agency.
KDPW’s EMIR Trade Repository (RT), which accepts reports on derivatives transactions, developed extensively over the past year. Both the number of entities reporting to KDPW and the number of recorded trades are systematically increasing. The number of foreign participants in the EMIR TR increased by 30 percent and the number of accepted reports by 40 percent in 2022. According to the latest available data as at September 2022, KDPW accounted for 13 percent of new reports accepted into trade repositories in the European Union, compared to 8.7 percent as at the end of March 2022.
On 29 December 2022 KDPW and Національний депозитарій України (National Depository of Ukraine, NDU) have signed an agreement establishing a direct operational link with the Ukrainian market. The agreement concluded between CSDs is part of the support for the Ukrainian financial market and it paves the way for Ukrainian local governments to issue municipal bonds on international markets.
On 25 April 2022, the clearing house KDPW_CCP started clearing repo transactions concluded on the Treasury BondSpot Poland platform. The new service is one of the projects under the Capital Market Development Strategy. The clearing of repo transactions is yet another step in the development of the services of the KDPW_CCP clearing house. The safety of clearing will be significantly improved for market participants, improving liquidity on the market.
As of 19 December 2022, KDPW_CCP operates OTC derivatives clearing in a new system. It functions as one of the clearing modules of kdpw_stream and makes the Polish market independent of foreign solution vendors for OTC derivatives clearing.
The Warsaw Stock Exchange (GPW) launched the GlobalConnect market on 4 November 2022. The KDPW Group is responsible for the clearing and settlement of such transactions in the same process as other securities registered in the KDPW depository system as an investor CSD (secondary CSD).
GlobalConnect transactions are cleared in KDPW_CCP and settled in KDPW according to the timetable applicable to the Polish market. Trade is settled in PLN.
The number of brokerage accounts increased by 210,000 between January and November 2022.