Raiffeisen Bank Polska S.A. has become the first member of Polish clearing house KDPW_CCP to participate in OTC derivatives clearing.
KDPW_CCP began offering the service January 2. It is offering promotional terms to institutions that become OTC clearing participants by March 29. Clearing members that join by that date do not have to pay the entry fee in the register of participants (PLN50,000, or EUR12,500) and the 2013 participation fee (PLN20,000 or EUR5,000).
In the first phase, KDPW_CCP will offer clearing of trades in the Polish zloty including interest rate forwards, interest rate swaps, overnight index swaps, basis swaps and repos (in Polish Treasury bonds). By 2014, the clearing house will also offer clearing of derivatives in other currencies.
Parties to trade in OTC derivatives can confirm trades on either MarkitWire or SWIFT Accord, which then sends clearing instructions to the clearing house. KDPW_CCP performs novation and clearing of trade in the system kdpw_otc.
(CG)