KDPW_CCP clears first OTC trades in PLN 29 May 2015Warsaw Reporter: Becky Butcher
Image: Shutterstock
KDPW_CCP has cleared the first inter-bank market over-the-counter trades denominated in PLN between Citi Handlowy and mBank.
The launch of the OTC derivatives and repo clearing service was required under European Market Infrastructure Regulation, whereby all OTC trade in derivatives certain classes must be cleared in an authorised central counterparty (CCP).
KDPW_CCP was authorised in April 2014.
Iwona Sroka, CEO and president of KDPW_CCP and KDPW, commented: “KDPW_CCP has 14 participants of OTC clearing including the largest and most active banks on the Polish market. It should be noted that the banks use the OTC clearing system even before the start date of the clearing obligation.”
Hans-Dieter Kemler, vice president of the management board for financial markets at mBank, added: “The clearing of liquid OTC derivative trades in a central counterparty clearinghouse is a key pillar of the financial market reform and will soon be mandatory in the EU member states.”
“We believe that KDPW_CCP can handle the vast majority of such trades between Polish banks and in the future add active foreign banks to its pool of participants.”
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one asset servicing news source this
year, make sure it is your free subscription to Asset Servicing Times
Image: Shutterstock 