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)
- clarification of the terms of application of the market code in settlement instructions,
- introduction of the volume of financial instruments for debt instruments specified as face amount instead of units,
- modification of the processing of repo and sell/buy-back transactions: integration of two existing models, harmonisation with CSDR requirements, introduction of partial settlement.
To address the needs communicated by KDPW participants and in view of CSDR requirements, KDPW is working to introduce operation type codes and market codes under ISO.
The specific solutions are consulted with market participants in S&R NMPG PL. Another standardisation area under consultation is the improvement of the terms of combining settlement instructions (complex transactions).
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).