KDPW processes the settlement of securities in the kdpw_stream system in multi-batch mode and in real-time mode (RTGS).
Settlement is processed as DvP (Delivery versus Payment: KDPW ensures simultaneous settlement of securities against cash) or FoP (Free of Payment: KDPW only transfers securities between members’ accounts).
According to applicable international standards, cash settlements are processed in the money of the central bank (PLN). Settlements in multi-batch mode are based on multi-lateral netting of balances while RTGS uses a gross settlement method (one transaction after another).
KDPW processes settlements according to instructions presented by KDPW members, the clearing house KDPW_CCP or documents with the terms of transactions presented by the operator of a regulated marker or the organiser of an alternative trading system.
Instructions are accepted for settlement as XML messages or MT messages under ISO15022.
Messages available from KDPW are in user-friendly format (XML or MT). Following the presentation of settlement instructions, a member receives status messages (upon each change of status) and a final statement after settlement. The kdpw_stream system also processes instruction status queries, balance queries, booking list queries.
In addition, the kdpw_stream system offers:
- default values of selected fields provided by the system;
- settlement of transactions under a toleration limit;
- pre-matching of instructions enabling parties to match the terms of transactions on a preliminary basis prior to settlement;
- processing of standing orders;
- processing of enriching instructions used to modify previously presented settlement instructions;
- processing of complex transactions: members may set conditions for the settlement of two or more transactions;
- settlement of instructions dedicated to a specific batch.
In order to optimise settlements, KDPW enables automatic lending in case of a shortage of securities in a registration account of the relevant clearing member necessary to settle a transaction.