Polish clearing house KDPW_CCP has applied for authorisation under the European market infrastructure regulation (EMIR) from the Polish Financial Supervision Authority.
KDPW_CCP says it has been working to introduce novation into the Polish legal system as part of its efforts to become authorised. It has also upgraded its procedures and technology.
Novation will allow the clearing house to take over the rights and obligations of the original counterparties to trade once it has been accepted for clearing.
Iwona Sroka, president and CEO of KDPW_CCP, said: "The key modifications which we have put in place in the clearing house and in its legal environment included our efforts to introduce novation into the Polish legal system, to increase the own capital of KDPW_CCP adequate to the size of the served markets, to change the default system waterfall, and to set up a Risk Committee."
KDPW_CCP has increased its own capital to PLN 209.5 million, which it believes will be adequate to serve the market under the requirements set out in EMIR.
It has also appointed a risk committee on 12 June, made up of key organisations including brokers, bank and investors, which give its views on transaction clearing rules.
KDPW_CCP has also applied to become a qualifying CCP under the draft capital requirements regulation, which gives it a reduced risk weight for trades to which they become a counterparty.