Growing activity of KDPW and its participants in international markets requires on-going alignment of KDPW systems with the global standards and market practice applicable to the exchange of settlement messages. In the National Market Practice Group (NMPG PL), KDPW in co-operation with representatives of market participants develops a range of settlement practices to apply in the Polish market. The practices are then gradually implemented in kdpw_stream. Standardisation efforts are on-going due to continuous market development and modifications of international standards.
The work to date has implemented among others the following functionalities:
- provision of the error code of instruction matching;
- modification of the instruction expiry rules;
- improvements of matching with settlement value tolerance including new matching mode ‘0’;
- final rejection of incorrect settlement instructions;
- introduction of ISO codes designating error reasons of settlement instructions;
- instruction status depending on the actual settlement date;
- modifications of the designation of suspended instruction status;
- modifications to the settlement instruction matching rules at client level enabling automation of matching on KDPW participant side (STP);
- clarification of the rules of application of market codes in settlement instructions;
- introduction of the designation of the volume of financial instruments for debt instruments as face amount instead of quantity in units;
- modifications to the processing of repo and sell/buy-back transactions: integration of two existing models, alignment with the CSDR requirements and introduction of partial settlement;
- new simplified model of linking settlement instructions;
- new feature allowing to transfer settlement instructions between real-time settlement system (RTGS) and multibatch.
Implementation of ISO15022/20022 settlement operation codes is scheduled for September 2019. Testing will start in March 2019. The detailed materials have been published in June 2018:
Identifiers of settlement transaction types under ISO 15022/20022 in kdpw_stream: specification of business requirements
Identifiers of settlement transaction types under ISO 15022/20022 in kdpw_stream: mapping table
How to use MyStandards?
The KDPW Group joined the ISO20022 Harmonisation Charter in September 2016. In line with the Charter’s recommendations, KDPW has published on MyStandards in 2017 the documentation of its ISO messages used in communications with counterparties in Corporate Actions (ISO20022), Settlement and Reconciliation (ISO15022 and ISO20022), Clearing (ISO20022).
As of November 2017, ISO20022 settlement and reconciliation messages are available in kdpw_stream system in addition to its proprietary XML messages and SWIFT ISO15022 messages. The message structures and the accompanying user guide document have been published on MyStandards.