A developed post-trade infrastructure supports the development of the Polish capital market

Luc Williams

If you look at the National Depository itself, it has been providing services in the field of registration of securities and handling clearing and settlement of transactions since the beginning of the capital market in Poland, i.e. since 1991. And it continues to perform these basic functions to this day. Already from the first session, there was a need for efficient, safe and timely settlement of concluded transactions, as well as maintaining a securities register.

In 1994, Krajowy Depozyt became an independent company and over the last 30 years it has come a long way from an entity providing depository and clearing and settlement services to the most developed infrastructure institution in this part of Europe, which, in addition to the basic services provided by central depositories and clearing houses, also offers a whole package of additional solutions to the market. And among them there are: EMIR and SFTR trade repository, i.e. services related to the collection and storage of data regarding transactions concluded in derivative instruments and financial transactions using securities. We offer the ARM service (which involves transmitting information to the supervisory authority about the details of transactions concluded in trading in financial instruments) and a numbering agency assigning the following codes: LEI, ISIN, CFI, FISN. We keep a register of issuers' liabilities, provide access to a lot of market information through the Data Portal, and support the creation of loyalty programs for shareholders thanks to applications for their identification. We operate a compensation system to protect investors. We create and manage operational connections with foreign depositories, thanks to which it is possible to list foreign companies in Warsaw in the dual-listing formula.

Over recent years, in a dynamically changing market and regulatory environment, the KDPW Group has created a complementary package of services that meets the contemporary requirements of the most developed financial centers, obtained appropriate authorizations for its services and successfully expanded its offer abroad. And their scope will be expanded to include new solutions that will be available to customers also this year.

For the last 30 years, we have been developing and creating new services with our participants in mind: brokerage houses and offices, banks, issuers, investment and pension funds, and investors.

Recently, there have been many discussions and debates about the future of the capital market and ways to increase its role in financing the country's economic development. One conclusion emerges from them – the capital market requires support. Support from many sides. In my opinion, for the development of the capital market in Poland, it is necessary to include it in the country's economic development strategy. If the capital market is not involved in important economic or social processes, such as pension security, financing the energy transformation, etc., it will be difficult to push it towards development.

In the context of a discussion about the future of the market, during one of the recent interviews, I was asked why there is so much talk about the capital market in Poland needing support, and in the case of infrastructure institutions such as KDPW or KDPW_CCP, no one talks about the need for support. Why this discrepancy, since the KDPW Group is an important part of the market? Then I remembered the situation from five years ago. During the celebration of the 25th anniversary of the establishment of the National Depository for Securities, someone nicely said that the National Depository for Securities is the heart of the capital market. You can have a healthy heart, but if other parts of your body are unhealthy, it won't function properly. This is the case with our market. His heart works properly, but other areas require support so that the body can be fully functional and perform its tasks.

The KDPW Group creates capital market infrastructure. And the infrastructure should, above all, be efficient, safe and cheap. For this to be possible, it must be based on technological solutions.

The infrastructure should also be adapted to local market needs. Both KDPW and the KDPW_CCP clearing house provide such solutions: a response to international standards and regulations, and at the same time tailored to the participants of the Polish capital market.

In order to play an important role on a European scale, the Polish capital market must offer a full range of services, also in the post-transaction sphere. Therefore, the KDPW Group is constantly developing its offer, providing the market with new solutions and adapting to international standards and regulations. This has been the case for the last 30 years and I can assure you that we have no intention of changing our approach.


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