How to become a clearing member - OTC

Eligible as KDPW_CCP participants in non-organised trading are:

• investment firms,
• domestic banks,
• foreign investment firms
• other legal entities, provided that that are eligible as a participant under the relevant legislation in force in the Republic of Poland and, pursuant to the provisions of the Rules, their participation is aimed at cooperating with KDPW_CCP with respect to activities performed in the OTC clearing system,
• entities registered outside the territory of the Republic of Poland which perform tasks concerning the clearing of securities transactions,
• entities authorised to provide clearing services as a CCP.

TYPES OF PARTICIPATION:

• CLEARING MEMBER is an entity which is liable to KDPW_CCP for the proper performance of its obligations arising from the clearing of transactions registered in a clearing account maintained in the OTC system for the member, including obligations related to the creation and operation of a transaction clearing liquidity guarantee system,
  and its participation may be of one of three types:
  • GENERAL CLEARING MEMBER,
  • INDIVIDUAL CLEARING MEMBER,
  • CLEARING HOUSE,
• NON-CLEARING MEMBER - a clearing member’s client entitled to require KDPW_CCP to perform operations to the extent of securing positions arising from transactions concluded by the non-clearing member and measures securing such positions.

How to become a KDPW_CCP participant?

• Conclusion of a participation agreement: submission of an application (Template 1 – clearing member, Template 2 – non-clearing member) with enclosures set out in § 23 of the Rules of Transaction Clearing (non-organised trading)

Simplified procedure for the participants of KDPW_CCP
Where an applicant is a participant of a separate clearing system operated by KDPW_CCP, in place of documents mentioned above as appendices, it may submit a declaration confirming their application to participation in the OTC clearing system (Template 34)

• Access to a confirmation platform;
• Tests in the test environment;

• Payment of a contribution to the clearing guarantee system (initial contribution to the OTC guarantee fund: ≥ PLN 1 mn, initial deposit ≥ PLN 1 mn);
• Financial requirements:

• Technical requirements – maintaining technical and technological infrastructure necessary to set up connections with the KDPW_CCP IT system dedicated to the operation of the OTC clearing system;
• KYC requirements;
• Production roll-out;