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growth in this market sector.
KDPW_CCP hasn added new
types of acceptable collateral to the
collateral management service, in-
cluding collateral posted as margins
or contributions to funds, both in
organised and non-organised trade.
The new functionalities added to
the existing collateral management
structure include contributing cash
in EUR, as well as bonds denomi-
nated in EUR as collateral.
The Polish clearing house offers
a netting mechanism, which allows
KDPW_CCP to generate one settle-
ment instruction sent to KDPW or
another settlement institution (for
securities and/or cash settlement)
for all operations which credit and/
or debit a designated settlement
account. The implementation of
netting and aggregation (directional
netting) of debits and credits in se-
curities arising from cleared trans-
actions concluded on the regulated
market or in an alternative trading
system, implies improved operating
standards of the clearing process,
resulting in a significant reduction
of the number of instructions sent
for settlement while reducing the
cost of trade settlement.
Trade Repository Services
KDPW_TR was one of the first
trade repositories in Europe to be
registered by the European Securi-
ties and Markets Authority (ESMA)
in confirmation of compliance with
all international standards which
guarantee the highest quality of
service.
KDPW_TR has participated in
the implementation of EMIR from
the very beginning and is engaged
in active dialogue with all market
participants, such as regulators,
other trade repositories, as well as
reporting participants. KDPW_TR
aligns its services with the legal
requirements and the ESMA
guidelines and follows the needs
of market players covered by the
reporting obligation.
The strengths of KDPW_TR are:
secure certified access to the ap-
plication; a user-friendly intuitive
website interface with reporting
functionalities and direct access to
maintained data; global communi-
cation standards (XML messages,
dedicated message queues MQ);
easy access to support of our highly
qualified experts; existing proce-
dures applicable in the event of
contingencies, solutions ensuring
the highest security standards and
business continuity in data collec-
tion and maintenance (including a
back-up site).
KDPW_TR offers the reporting of
derivative trades via a user-friendly
secure website interface or over
automatic direct connections.
Derivatives trades are reported in
messages developed in line with
the scope of information required
under the EMIR Technical Stan-
dards. They include all data nec-
essary for the Trade Repository to
identify trades and process reports
as required by ESMA.
The ARM service
On 3 January 2018, KDPW
launched its Approved Reporting
Mechanism (ARM) service. The
ARM service consists of sending
trade data to the relevant super-
visory authority on transactions
executed as part of trading in
financial instruments on behalf of
entities obliged to report such data
under EU Regulation No. 600/2014
(MIFIR). Owing to delays in the
implementation of EU Directive
No. 2014/65 (MIFID II), KDPW
will be offering ARM services on
the basis of provisions of national
law incorporated in legislation
on the distribution of insurance
services, until KDPW obtains offi-
cial authorisation from the Polish
Financial Supervision Authority.
An ARM is authorised to provide
services throughout the whole EU.
Reports are sent by the ARM to the
relevant supervisory authorities,
depending on the domicile of the
entity with the obligation to submit
reports.
KDPW currently performs the
role of intermediary in sending
reports to the following superviso-
ry authorities: The Polish Financial
Supervision Authority, The Malta
Financial Services Authority, The
Portuguese Securities Market
Commission, and The Financial
Conduct Authority (UK). KDPW
will enter into agreements with
other supervisory authorities,
depending on client demand.
LEI assigning
According to the ROC’s decision of
27 December 2013, KDPW became
an LOU authorised to issue LEIs.
Since then, KDPW has issued
approximately 16. thousand codes
to entities.
The main advantages of the
KDPW LEI service include: cus-
tomer service in English and Polish;
very competitive fees for the issu-
ance and renewal of LEIs; prompt
processing of orders; individually
dedicated account manager for each
order, available to the client at every
step of the application verification
process; automatic communicating
of all events in the processing of
orders; highly competent staff ded-
icated to customer service and an
excellent understanding of the spec-
ificity of the Polish capital market
including local legal requirements.
Access to LEI management
services: filing applications for the
issuance or transfer of an LEI with
KDPW; review and processing of
issued LEIs, including data updates
and corporate actions; review of
order history including payment
details; downloading invoices; and
user account management.
Issue 58 // TheTradeNews.com // 67