Newly-established Polish clearing house and central counterparty, KDPW_CCP, has adopted a new OTC derivatives clearing solution to meet global standards.
The move comes as Group of 20 member countries begin to fall in line with a G20 mandate to centralise the clearing of OTC derivatives and to bring as many as the instruments as possible on exchange for trading. While Poland is not a member of the G20, it is increasingly looking to modernise its markets in line with global standards.
KDPW_CCP's new clearing solution and Sentinel Risk Manager product was selected from exchange group Nasdaq OMX.
KDPW_CCP is the new Polish clearing house which launched in July 2011, separate to Krajowy Depozyt Papierów Wartosciowych (KDPW), Poland’s national securities depository. KDPW plans to implement OTC derivatives clearing this year. A key part of KDPW_CCP’s role is to act as a separate clearing house that could develop a working OTC clearing model, based on global standards.
“It was important to select a solution that easily integrates with KDPW’s legacy CCP infrastructure and provides to connectivity and information required by our clearing members,” said Iwona Sroka, president and CEO of KDPW_CCP. “Nasdaq OMX”s Sentinel solution meets those requirements by providing the trade lifecycle and risk information required by KDPW and its members to clear OTC trades.”
Sentinel Risk Manager is part of Nasdaq OMX’s multi-asset clearing solution for OTC and listed derivatives. The solution provides real-time risk management that lets the CCP offer cross-margin benefits.
Nasdaq OMX said Sentinel Risk Manager was compliant with pending G20-endorsed European and US legislation, including EMIR in Europe and the Dodd-Frank Act in the US.
KDPW is finalising work this quarter on an application which will allow issuers of securities to exchange corporate actions information over a website. The securities depository is also working on a securities loans platform and technology to reduce the cost of settlement by clearing according to international recommendations.