Rules of Transaction Clearing (non-organised trading)

In connection with the decision of the Polish Financial Supervision Authority (KNF) of 27 October 2023 on the approval of the amendments to the Rules of Transaction Clearing (non-organised trading) made by Resolution No. 27/606/23 of the Supervisory Board of KDPW_CCP S.A. of 25 September 2023, the amendments came into force on 1 January 2024.

The amendments to the Table of Fees in Appendix 1 to the Rules of Transaction Clearing (non-organised trading), concern the fee for management and administration of assets paid in by clearing members as margins and contributions to the OTC fund, and are as follows:

1. in the case of the fee for management and administration of cash assets paid to the OTC fund and assets paid as margins – the variable fee has been reduced from 20% to 18% of income generated on behalf of the participant from the management of the collateral;
2. in the case of the fee charged for cash contributions in EUR:

• if the deposit interest rate published by the European Central Bank is positive or nil – the participants will pay fees equal to the EUR equivalent of the product of 1/360, a rate of 0.2%, and the basis used for the calculation of the fee, where the fee amount is no less than the equivalent of EUR 50 for a given calendar month;  
• if the deposit interest rate published by the European Central Bank is negative – the provisions in the Table of Fees are not amended.

Further to the decision of the Polish Financial Supervision Authority of 14 October 2021 approving amendments to the Rules of Transaction Clearing (non-organised trading) adopted in Resolution No. 50/533/21 of the Supervisory Board of KDPW_CCP S.A. dated 13 September 2021 the amendments entered into force on 1 January 2022.

The amendments in the Table of Fees defined in Appendix No. 1 to the Rules of Transaction Clearing (non-organised trading) concern fees for the management and administration of assets posted by clearing members as margins and contributions to relevant funds. The amendment is designed to introduce a fee structure which is universal regardless of the macroeconomic situation and interest rates. As a result, the structure and amount of the fee for the management and administration of assets contributed to the relevant fund and assets posted as margins has been modified and will consist of a fixed part calculated on the value of collateral deposited in cash, equal to 0.07% (a reduction from the current level of 0.1% per quarter) multiplied by the basis for calculating the fee in a given quarter, as well as a variable part in the amount of 20% of profits generated for the participants from the management of the collateral. The fee charged on posted securities will be reduced from 0.1% to 0.07% per quarter.

Temporary reduction of the fee for the management and administration of assets posted as contributions to the OTC guarantee fund and asstes posted as margins (point 5.1 of the Table of Fees)
The reduction of the fees applied from 1 January 2021 to 31 December 2021.
Resolution No. 11/494/21 of the KDPW_CCP Supervisory Board dated 29 March 2021 amended by Resolution No. 31/514/21 of the KDPW_CCP Supervisory Board dated 29 June 2021

Reduction of the fee for the participation type of “non-clearing member”. The fee for the year 2021 shall be PLN 5,000, If a participation agreement for the participation type of “non-clearing member” is concluded in the first half of 2021, the fee for the year shall be equal to the full amount of the reduced fee (PLN 5,000), and if in the second half of 2021, the fee shall be equal to ½ of the reduced fee (PLN 2,500). (point 1.2 of the Table of Fees)
Resolution No. 13/496/21 of the KDPW_CCP Supervisory Board dated 29 March 2021.

Temporary reduction of the fee for management and administration of cash assets (other than cash assets in EUR) paid in as contributions to the OTC guarantee fund and posted as margins (point 5.2 of the Table of Fees)
The reduction of the fees applied from 1 July 2021 to 31 December 2021.
Resolution No. 33/516/21 of the KDPW_CCP Supervisory Board dated 29 June 2021.

Temporary reduction of the fee for the management and administration of cash posted as contributions to the OTC guarantee fund and cash posted as margins (point 5.2 of the Table of Fees)
The reduction of the fees applied from 1 July 2020 to 31 December 2020.
Resolution No. 28/436/20 of the KDPW_CCP Supervisory Board dated 15 May 2020.

In connection with the decision of the Polish Financial Supervision Authority of 23 October 2020 approving amendments to the Rules of Transaction Clearing (non-organised trading) adopted in Resolution No. 8/416/20 of the Supervisory Board of KDPW_CCP S.A. dated 4 March 2020 amended by Resolution No. 54/462/20 of the Supervisory Board of KDPW_CCP S.A. dated 6 August 2020 the Management Board of KDPW_CCP S.A. announces that the amendments entered into force on 1 December 2020. The amendments of the Rules of Transaction Clearing (non-organised trading) under those Resolutions aim to:

• introduce an additional channel of electronic communications (GUI system) to the regulations, which not only gives users access to the clearing system but also supports the submission of information and declarations in electronic format in the system as referred to in the Rules of Transaction Clearing (non-organised trading) or regulations issued thereunder, including in particular orders to open or close clearing accounts, orders concerning collateral, and (at a later date) orders concerning position transfers. The GUI system in its proposed form (i.e., including the aforementioned functionalities) will be available on the KDPW_CCP S.A. website under a dedicated agreement to be proposed by KDPW_CCP (the content of the new agreement and the new access request applications required to join the GUI system in its proposed form will be communicated at a later date). It should be noted that the SWI system will continue to operate as the mandatory communication system for participants while the GUI system, including the functionalities defined in the KDPW_CCP regulations and operated via the KDPW S.A. system, will be optional;
• introduce provisions governing the terms and conditions of communications in special circumstances, including in the event of a contingency or other significant threats, such as the current epidemic threat. Consequently, in such circumstances, derogations will be allowed from the requirements of the Rules of Transaction Clearing (non-organised trading) or regulations issued thereunder regarding the format of documents containing declarations or information, subject to mutual consent of KDPW_CCP and the participant. The Management Board of KDPW_CCP S.A. may, in its Resolution, define circumstances where declarations or information should be submitted in electronic format via the SWI system or the GUI system or in writing;
• introduce provisions authorising the use, in the event of default of a clearing member participating in more than one clearing system organised by KDPW_CCP, of any surplus which:
  • remains after the payment of the member’s debits due by virtue of its participation in another system organised by KDPW_CCP;
  • represents such member’s own funds; or
  • has been contributed by that member as collateral securing all transactions cleared by such member or transactions concluded and cleared on the member’s account. In that case, in accordance with ESMA guidance, KDPW_CCP should freely pay any debits arising from the clearing of transactions by using also such own funds of the member rather than returning such funds and using contributions of other members posted in the fund. Consequently, such funds should constitute part of the of each transaction clearing liquidity guarantee system. Therefore, such surplus will, once posted in the relevant account managed for KDPW_CCP, constitute financial collateral contributed as initial deposit to each of the systems;
• introduce other amendments of editorial nature.

In connection with the decision of the Polish Financial Supervision Authority of 15 June 2020 approving amendments to the Rules of Transaction Clearing (non-organised trading) adopted in Resolution No. 26/434/20 of the Supervisory Board of KDPW_CCP S.A. dated 15 May 2020, entered into force on 1 July 2020.

The amendments concern the Table of Fees laid out in Appendix 1 to the Rules of Transaction Clearing (non-organised trading), including:

• fees for the management and administration of cash posted as contributions to the relevant fund and cash posted as margins (excluding cash in EUR) – change of the minimum fee threshold;
• fees charged on posted securities – reduction of the fee from 0.2% to 0.1% per quarter and removal of maximum and minimum fee amounts.

In connection with Resolution No. 28/436/20 of the Supervisory Board of KDPW_CCP S.A. dated 15 May 2020, the fee for the management and administration of cash posted as contributions to the OTC guarantee fund and cash posted as margins, referred to in point 5.2 of the Table of Fees, will be reduced from the effective date of the amendments of the Table of Fees under Resolution No. 26/434/20 of the Supervisory Board of KDPW_CCP S.A. to 31 December 2020 as follows: if the amount of the fee equal to 0.1% times the basis for the calculation of the fee in a quarter is more than 100% of the income earned for the participant in the quarter, the fee charged to the participant for the quarter will be equal to 100% of such income.

Temporary reduction of the fee for the management and administration of assets deposited as contributions to the OTC guarantee fund and assets posted as deposits or margins (point 5.1 of the Table of Fees))
The reduction of the fees applied from 1 January 2019 to 29 February 2020.
Resolution No. 4/351/19 of the KDPW_CCP S.A. Supervisory Board dated 31 January 2019 amended by Resolution No. 49/396/19 of the KDPW_CCP Supervisory Board dated 23 September 2019.

Temporary waiver of the fees clearing of EUR transactions in KDPW_CCP (point 2.1 of the Table of Fees)
The waiver of the fee applied from 1 January 2019 to 29 February 2020.
Resolution No. 5/352/19 of the KDPW_CCP S.A. Supervisory Board dated 31 January 2019 amended by Resolution No. 56/403/19 of the KDPW_CCP Supervisory Board dated 23 September 2019.

Amendments of the Rules of Transactions Clearing (non-organised trading) entered into force on 1 October 2019 following the decision of the Polish Financial Supervision Authority (KNF) of 5 September 2019 approving the amendments adopted under Resolution No. 43/345/18 of the KDPW_CCP S.A. Supervisory Board dated 21 December 2018, as amended by Resolution No. 38/385/19 of the KDPW_CCP S.A. Supervisory Board dated 17 June 2019 and Resolution No. 47/394/19 of the KDPW_CCP S.A. Supervisory Board dated 12 August 2019.

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 (non-organised trading):

• clearing members’ required contributions to the OTC guarantee fund 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,
• additional margins will no longer be required,
• the maximum value of the fund will no longer be determined,
• the first (initial) contribution to the fund will be adjusted,
• a single institution code will be used for the purposes of participation in the fund,
• 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.