Krajowy Depozyt Papierw Wartościowych (KDPW), Polands national securities depository, said its main priority for 2012 is the implementation of OTC derivatives clearing. The project follows the launch of KDPW_CCP clearing house, which developed the OTC clearing model, in July 2011.
The main benefit of the project is to release credit limits, which banks impose on their counterparties. This in turn may improve liquidity on the interbank market, which is so much needed these days, said Iwona Sroka, president and CEO of KDPW . The CSD will also adopt SWIFTs Accord for Treasury for matching these transactions.
KDPW said the creation of the clearing house was a highlight of 2011. As a result, the Polish market complies with global standards of clearing houses and central securities depositories, it said in a press release. These are projects key to the development of the Polish capital markets.
Among other plans for 2012, KDPW is finalizing work on an application which will allow issuers of securities to exchange corporate actions information over a website. The modifications will be implemented in the first quarter of this year. Information on upcoming payments of benefits required under applicable regulations, which issuers previously provided to the National Depository in paper form, will now be entered by issuers solely via the internet application, said.
Other active projects crucial to the Polish market include the creation of a securities loans platform, and implementation of the hold-release mechanism necessary to steer the sending of instructions for clearing according to international recommendations in order to reduce the cost of settlement.
Other highlights in 2011 include the opening of KDPWs 17th operational link with the Slovenian market. As a result, Slovenian companies can be listed on the Warsaw Stock Exchange.
The KDPW also successfully migrated euro settlement to TARGET2 on Nov. 21 2011. First operations have already been performed on the TARGET2 platform.
(JDC)