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The Polish Financial Supervision Authority (KNF) has extended the authorisation of the clearing house KDPW_CCP to cover new classes of instruments and categories of acceptable collateral as of August 9, 2016.
KNF’s decision allows KDPW_CCP to offer new services: the clearing of EUR-denominated instruments in organised trading (exchange market and ATS) and in OTC trade (interbank market), as well as the clearing of PLN-denominated OTC debt instruments. The extended authorisation of the clearing house allows it to accept collateral in EUR, including both cash and bonds.
KNF’s decision follows a positive opinion of the Authorisation College and allows KDPW_CCP to clear new instruments:
- EUR-denominated interest rate derivatives in non-organised trading (FRA, IRS, OIS, Basis Swap);
- EUR-denominated debt and equity instruments in organised trading;
- PLN-denominated debt instruments in non-organised trading.
The College included representatives of the Polish Financial Supervision Authority (KNF), the National Bank of Poland (NBP), the European financial supervision authority ESMA, the French and Belgian supervisors (AMF, NBB), and the European Central Bank.
Iwona Sroka, President & CEO of KDPW_CCP, commented:
The decision of the Polish Financial Supervision Authority, which follows a positive opinion of the international College, allows us to build national competences in EUR OTC derivatives clearing. KDPW_CCP provides banks participating in OTC trade with a comprehensive and tailored offering of transaction clearing here, in Poland, in an authorised clearing house, both in the local currency and in EUR.
Our advantages include offering such requirements for clearing house participants which are matched with the size of the local market, as well as compliance with European standards, high safety of clearing, and top quality of service which meets the international regulatory requirements.”
The Polish clearing house was authorised in April 2014 to clear PLN-denominated equity and debt instruments in organised trade and derivatives on the regulated and OTC market.
The participation of the top 16 banks in the OTC clearing system proves that the solutions offered by KDPW_CCP are attractive for entities active in the interbank market. The extension of KDPW_CCP’s authorisation to include EUR-denominated instruments opens the opportunity to further activate the OTC market as it enhances the transparency of trade and helps to foster confidence in the interbank market.