Business operation of WSE associates

National Depository for Securities (KDPW) and KDPW_CCP

The KDPW Group is responsible for clearing and for operation of the depository-settlement system which supports trade in financial instruments in Poland.

National Depository For Securities (KDPW)

The main function of the National Depository for Securities (KDPW) is to operate and supervise the depository-settlement system which supports trade in financial instruments in Poland.

The main tasks performed by KDPW include:

  • keeping in deposit dematerialized securities and registration of financial instruments;
  • settlement of transactions in dematerialized securities and transactions in other financial instruments;
  • monitoring compliance of the issue size with the number of outstanding securities;
  • performing the issuers’ obligations towards securities holders, among others, intermediation between issuers and their shareholders or bondholders in the payment of dividend and interest and, on behalf of domestic and foreign issuers, among others, assimilation, exchange, conversion and split of shares, exercise of the pre-emptive right, conversion of convertible bonds into shares;
  • management of the obligatory compensation system created with a view to guarantee money and securities entered in investment accounts if a brokerage house or bank performing brokerage activities is insolvent;
  • administration of the basic part of the Guarantee Fund referred to in the Act on Pension Funds;
  • tasks related to the social security system, including handling transfer payments between open-ended pension funds as a result of a participant having changed the pension fund or the division of funds gathered by the participant;
  • operation of a derivatives trade repository.

KDPW_CCP

KDPW_CCP, a subsidiary of KDPW, performs functions involving the clearing of transactions and the operation of a clearing liquidity system. The business of KDPW_CCP is to clear transactions concluded on the markets operated by WSE and BondSpot and to manage clearing risks of such transactions.

In its activity, KDPW_CCP uses a clearing risk management model based on SPAN® methodology, applied by the world’s leading clearing houses, which supports the calculation of margins and the assessment of risks under any market scenarios. KDPW_CCP is equipped with own capital of PLN 200 million as a part of the clearing guarantee system.

As of December 2012, KDPW_CCP provides a new service: clearing and guaranteeing the clearing of OTC derivatives and repo transactions (OTC_CLEARING). As a result, KDPW_CCP has started to support interbank market transactions aiming mainly to mitigate the risk of default of trading counterparties and, consequently, to stimulate growth of this market segment.

WSE holds 33.33% of shares in KDPW’s share capital, which gives the right to exercise 33.33% of votes at the general meeting. Currently, WSE, the State Treasury and the National Bank of Poland each own one-third of the shares of KDPW.

Centrum Giełdowe

“Centrum Giełdowe” S.A. was established in 1995. The company administers, manages and runs the Exchange Centre located at ul. Książęca 4 in Warsaw and leases premises located therein. The company acts also as a substitute investor and manages real estate on commission from other entities.

WSE holds 24.79% of shares in the company’s share capital, which gives the right to exercise 24.79% of votes at the company’s general meeting. The other shareholders are Krajowy Depozyt Papierów Wartościowych S.A. (15.72% shares and voting rights) and Centrum Bankowo-Finansowe “Nowy Swiat” S.A. (59.49% of shares and voting rights).

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