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:
- sending the reason code of instruction matching; failure
- modifications of instruction expiration rules;
- improvement of the matching system with tolerance of the settlement amount, including a new matching mode ‘0’;
- definitive rejection of erroneous settlement instructions;
- introduction of ISO codes for settlement instruction errors;
- instruction status depending on the actual settlement date;
- modifications of suspended instruction status identifiers;
- modification of settlement instruction matching at client level automating matching on KDPW participant side (STP).
To address the needs communicated by our new participants and in view of the CSDR requirements, KDPW has initiated work to report volumes of debt financial instruments as notional amount instead of quantity, as well as operation types and market codes under ISO. The detailed solutions are consulted with market participants in the S&R NMPG PL. The timetable of this work will be closely related to the timetable of harmonisation with the CSDR (we are planning the testing of the new solutions in Q4 2016 and the implementation of the solutions in the 2017 spring implementation window).
In December 2015, S&R NMPG PL approved a modification of the terms of matching of settlement instructions, eliminating the KDPW identifier as a counterparty identifier from the matching process. The modification will be implemented in kdpw_stream during the upcoming implementation window scheduled in early April 2016.