KDPW_CCP - general information

Report
KDPW_CCP
Company Presentation
September 2014
Overview of the Polish Capital Market
Financial Supervision Authority (KNF)
WSE Main Market,
BondSpot, Catalyst,
NewConnect, OTC
KDPW
KDPW_CCP
Institutional
investors
National Bank of
Poland
Financial
institutions and
intermediaries
Issuers
Individual
investors
2
join the celebrations
of the 25th anniversary
of economic freedom
in Poland
___________________________________
was established in 1991
was separated in 1994,
as an independent,
join stock company
was created in 2011
3
KDPW_CCP
33%
33%
WSE
KDPW:
NBP
 Trade repository service – EMIR compliant. One of the
first 4 trade repositories in UE. ESMA registration of
KDPW_TR (7 Nov. 2013)
Treasury
33%
 LEI – one of the 14 agencies in the world allocating LEIs
KDPW_CCP:
 Established: July 2011
100 %
 100% of shares owned by KDPW
 KDPW_CCP own capital: PLN 218 M (ca. EUR 52 M)
 Central counterparty functionality through novation
 Reporting to KDPW_TR (non mandatory)
 KDPW_CCP the 3rd authorised clearing house in Europe
4
Main responsibilities of KDPW and KDPW_CCP
100%
Settlement
Regulated Market
ATS
Cash OTC
Central Securities Depository
Managing Deposit Accounts
Registering and Safekeeping
of Securities
Corporate Actions
Operational Links with Foreign CSDs
Clearing
Database Management
Numbering Agency (ISIN, LEI)
Regulated Market
Investor Compensation Scheme
ATS
REPO
OTC
Derivative OTC
Risk Management
Asset Management
SPAN
VaR
Guarantee Fund
Collateral Management
OFE Transfer Payments
Trade Repository
Exchange Clearing House (GIR KDPW)
PLN
Govt. Bonds
T-Bills
WIG20
Companies
KDPW_CCP Milestones
2009
2010
• New Development Strategy of KDPW
• Creation of KDPW_CLEARPOOL Clearing Guarantor – first step to CCP
•Establishing of KDPW_CCP clearing house:
• Separate legal entity
2011
• New clearing guarantee system
July 2011
• SPAN
• CCP’s own capital
2012
2013
2014
• Introducing novation to the Polish legal system
• Introduction of OTC clearing service
Nov. 2012
• Application for authorisation
• EU Authorisation of KDPW_CCP
8.04.2014
6
Authorised CCPs in UE (as of 12.09.2014)
No.
CCP
Country
Date
1
Nasdaq OMX Clearing AB
Sweden
18.03.2014
2
European Central Counterparty N.V.
Netherlands
1.04.2014
3
KDPW_CCP
Poland
8.04.2014
4
Eurex Clearing AG
Germany
10.04.2014
5
Cassa di Compensazione e Garanzia S.p.A.
Italy
20.05.2014
6
LCH.Clearnet SA
France
22.05.2014
7
European Commodity Clearing
Germany
11.06.2014
8
LCH.Clearnet Ltd
United Kingdom
12.06.2014
9
Keler CCP
Hungary
4.07.2014
10
CME Clearing Europe Ltd
United Kingdom
4.08.2014
11
CCP Austria, Abwicklungsstelle für Börsengeschäfte
GmbH
Austria
14.08.2014
12
LME Clear Ltd
United Kingdom
3.09.2014
7
KDPW_CCP - Markets & Products
CASH MARKET
Regulated
ATS
- Warsaw Stock
Exchange (WSE)
- BondSpot
- NewConnect
- Catalyst
- BondSpot
shares, bonds,
subscription rights,
allotment
certificates,
investment &
structured
certificates, index
participation units,
mortgage bonds,
warrants, ETFs
shares,
allotment
certificates,
bonds,
mortgage
bonds
DERIVATIVES MARKET
OTC
Regulated
- Matching
Engine
for REPO
- Warsaw Stock
Exchange (WSE)
T-bonds
futures
contracts,
options, index
participation
units
OTC
- OTC
(MarkitWire,
SWIFTAccord)
Forward Rate
Agreements,
Interest Rate
Swaps,
Overnight Index
Swaps, Basis
Swaps
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About KDPW_CCP

KDPW_CCP operates as a CCP (central counterparty) within the meaning of Regulation (EU)
No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC
derivatives, central counterparties and trade repositories, performing the clearing of
transactions executed in the cash and derivatives markets, both in on-exchange and offexchange (OTC) markets.

In accordance with KDPW_CCP regulations (the Rules of Transaction Clearing (Organised
Trading) and the Rules of Transaction Clearing (Non-Organised Trading)) KDPW_CCP
becomes the counterparty for all transactions accepted for clearing.

This is performed using the mechanism of clearing novation, introduced on the basis of
the Law on Trading in Financial Instruments.
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Regulated Market and Alternative Trading
System
KDPW_CCP guarantees clearing of transactions executed on the regulated cash and derivatives
market.
Regulated cash market trading platforms
Regulated derivatives market trading platform
KDPW_CCP guarantees clearing of transactions executed on the cash market in the alternative
trading system.
ATS cash market trading platforms:
10
OTC Clearing in KDPW_CCP
Since the end of 2012 KDPW_CCP has operated an OTC derivatives trade clearing system including a clearing
liquidity guarantee system.
Main functionalities of the OTC trade clearing system:

clearing of trades accepted to the OTC clearing system and intermediation in settlement arising from clearing

risk management

collateral management

function of central counterparty (CCP) through novation

reporting to the Trade Repository (service offered by KDPW)
Bank A
Confirmation
platforms*
Communication
SWIFT
EMIR
compliant
National Bank of
Poland
Trade Repository
(KDPW)
Bank B
SWI
CSD (KDPW)
• repo settlement
• safekeeping
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OTC Clearing: Cleared Instruments





FRA
IRS
OIS
Basis Swaps
REPO
PLN
KDPW_CCP has focused on OTC
derivatives denominated in PLN
 In the future: instruments denominated in EUR
 and other currencies – with regard to market demand.
12
OTC Clearing: Confirmation Platforms
KDPW_CCP clears trades on the basis of clearing instructions delivered
by an electronic platform operator (MarkitWire, SWIFT Accord or
proprietary matching solution for REPO).
 MarkitWire
 SWIFT Accord
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Reporting to Trade Repository
 In addition to compliance with its reporting obligations as a CCP, KDPW_CCP
has developed the service of reporting derivative contracts to the Trade
Repository operated by KDPW (KDPW_TR) on request of Clearing Members.
 Reporting can be delegated both by Clearing Members and through them by
their Clients and entities concluding derivative transactions on request of
their Clients (Brokers).
EMIR
compliant
 On 7 November 2013 The European Securities Market Authority (ESMA) has
registered the KDPW Trade Repository, confirming that it fulfills all trade repository
requirements under EMIR.
 The KDPW Trade Repository (KDPW_TR) was one of the first four such institutions to
be registered in Europe.
 KDPW_TR is approved to register all derivative contracts classes, both from the
regulated and OTC market.
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_CCP:
Clearing Guarantee System
– Default Waterfall
Credits of the defaulting member
Margins:
initial deposit > initial margin > additional margin
Resources of the relevant default fund
Contributed by the defaulting member
Dedicated resources of KDPW_CCP
(in the amount corresponding to at least 25% of the capital requirements taking into account
the allocation of the resources in relation to the size of the fund)
Contributions of other KDPW_CCP clearing members to the relevant
default fund
Own funds of KDPW_CCP
(up to 110% of the capital requirements)
Additional contributions of other KDPW_CCP clearing members to the
relevant default fund
EMIR
compliant
(not more than 50% of the last existing contributions according to the lates update)
Remaining own funds of KDPW_CCP
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Capital Requirements for Clearing Members
Organised Trading:
 General clearing member:
 the amount of PLN 50 M (ca. EUR 12 M) and the sum of
PLN 5 M (ca. EUR 1.2 M) for each entity represented by the
clearing member in any scope for the clearing of
transactions performed by KDPW_CCP – for banks;
 the amount of PLN 15 M (ca. EUR 3.5 M) and the sum of
PLN 2 M (ca. EUR 0.5 M) for each entity represented by the
clearing member in any scope for the clearing of
transactions performed by KDPW_CCP – for brokerage
houses;
OTC Market:
 General clearing member:
 PLN 100 M (ca. EUR 25 M);
 Individual clearing member:
 PLN 50 M (ca. EUR 12.5 M);
 Clearing house:
 PLN 100 M (ca. EUR 25 M).
 Ordinary (direct) clearing member:
 PLN 25 M (ca. EUR 6 M) for banks;
 PLN 4 M (ca. EUR 1 M) for brokerage houses;
 Clearing house:
 PLN 15 M (ca. EUR 3.5 M).
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www.kdpwccp.eu
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