Rules of the WSE BondSpot ATS guarantee fund

Acting pursuant to Article 57 of the Act of 16 August 2023 amending certain acts in connection with ensuring the development of the financial market and the protection of investors on that market (the “Amending Act”), amendments to the Rules of the GPW BondSpot ATS Guarantee Fund, aiming to adapt this regulation to the provisions of Articles 65 and 66 of the Act on Trading in Financial Instruments as amended by the Amending Act, came into force on 14 August 2024.
The amendments to the Rules of the GPW BondSpot ATS Guarantee Fund amend §§ 31-36 of the Rules to temporarily adapt the Rules to the amended provisions as per above. The existing §§ 31-36 were amended so that they was replaced by the content of the new §§ 31-32, which are contained in the amended regulation document.
KDPW_CCP S.A. will adopt the Rules in a new wording pursuant to Article 66(2) of the Act on Trading in Financial Instruments, and they will come into force upon approval by the Polish Financial Supervision Authority and at least two weeks after KDPW_CCP S.A. makes them available to participants. As of the effective date of the Rules in the new wording, the Rules in the current wording will become null and void and the legal basis for the regulation will change.

Amendments of the the Rules of the GPW BondSpot ATS Guarantee Fund entered into force on 25 April 2022 following the decision of the Polish Financial Supervision Authority of 3 March 2022 on the extension of the authorisation to provide clearing services as a CCP to the extent of activities connected with the clearing of repo transactions concluded in organised trading.

The amendments to the regulation are designed to support the start of the clearing of conditional repo transactions which will be concluded in organised trading. KDPW_CCP S.A. will accept for clearing classic repo transactions in Treasury securities registered in KDPW, excluding index-linked bonds. Repo transactions will be covered by the existing transaction clearing liquidity guarantee system organised by KDPW_CCP S.A. from the moment of their acceptance into the KDPW_CCP S.A. clearing system (transactions concluded in organised trading operated by BondSpot S.A. will be covered by the existing GPW BondSpot ATS guarantee fund).

On 5 October 2020 the amendments of the the Rules of the WSE BondSpot ATS Guarantee Fund entered into force. The amendments are designed to align the Rules with the planned central clearing of Treasury BondSpot Poland transactions in KDPW_CCP S.A. Central clearing will ensure full anonymity of Treasury BondSpot Poland transactions, mitigate the risk of transaction clearing, and eliminate the issue of counterparty risk limits.

As a result, Treasury BondSpot Poland transactions will be covered by the existing guarantee fund securing the clearing of transactions concluded in the alternative trading systems organised by the Warsaw Stock Exchange and BondSpot S.A. KDPW_CCP S.A. will cover such transactions with standard risk management measures used in organised trading.

On 1 October 2019 the amendements to the Rules of the WSE BondSpot ATS Guarantee Fund entered into force. The amendments are aimed at adjusting the provisions of the Rules of the WSE BondSpot ATS Guarantee Fund to the amendments to the Rules of the clearing fund and include, i.e. the introduction of a process of daily updating of clearing members' required contributions.

The following modifications are to be expected as a result of the entry into force of the aforementioned amendments to the Rules of Transaction Clearing (organised trading), the Rules of the Clearing Guarantee Fund and the Rules of the WSE BondSpot ATS Guarantee Fund:

• clearing members’ required contributions to the clearing fund and the relevant guarantee funds managed by KDPW_CCP will be updated on a daily basis,
• the methodology of calculating the fund value and the participants’ contributions will be modified as follows,
• additional margins will no longer be required,
• the maximum value of the funds will no longer be determined,
• the minimum contribution to each fund will be adjusted,
• a single institution code will be used for the purposes of participation in the funds,
• certain matters concerning clearing member default will be clarified in the regulations,
• the amount of the flat-rate withholding tax charged to non-resident clearing members will be defined,
• clause will be added authorising clearing members to terminate the participation agreement unilaterally, together with all transactions, in the event of KDPW_CCP default.