Responsibilities

The National Depository for Securities (KDPW) is the central institution responsible for the management and supervision of the depository-settlement system in relation to trading in financial instruments in Poland. Trading is based on the highest global standards including full securities dematerialisation.

The principle responsibilities of the National Depository for Securities include:

• The clearing and settlement of transactions executed in the public securities market Following the execution of a transaction, the National Depository carries out domestic and cross-border transfers of securities between participants' depository accounts and performs cash transfers between participants' accounts in the settlement bank. Clearing and settlement may be defined as follows:
  • Determining the values of cash and non-cash obligations following trade execution,
  • Debiting or crediting the depository accounts or securities accounts of participants that are parties to the trade.
• The registration and safekeeping of dematerialised financial instruments
  The National Depository manages depository accounts for participants of the depository-settlement system, on which securities are registered,
• Monitoring the size of the securities issue actually in trading
  The National Depository monitors the number of securities registered on all participant accounts to ensure it corresponds with the number of securities issued by the issuer,
• The processing of corporate actions
  The National Depository acts as intermediary between issuers and their owners for dividend payments (in the case of shares) and processes the following corporate events on behalf of Polish and foreign issuers: assimilations, exchanges, conversions and share splits, pre-emptive rights issues, and the conversion of convertible bonds into shares,
• The management of the Settlement Guarantee Fund,made up from participants? contributions, which is used to secure transaction settlement in the event of a shortage of cash on the participant?s account necessary to settle the transaction. The contributions to the separate parts of the Settlement Guarantee Fund are updated on a daily basis. The separate parts of the Settlement Guarantee Fund include:
  • The Guarantee Fund for the Settlement of Stock Exchange Transactions;
  • The Guarantee Fund for the Settlement of CeTO Market Transactions;
  • The Guarantee Fund for the Settlement of Stock Exchange Futures Transactions;
• The management of the compulsory Investor Compensation Scheme
  The National Depository manages the Investor Compensation Scheme, created for the purpose of guaranteeing cash and securities registered on investment accounts in the event of the insolvency of a broker or bank performing brokerage activities. The Scheme has been in operation since 1 January, 2003 and the highest value of compensation for assets covered will be increased consistently each year to the equivalent of 22,000 EUR from 1 January 2008.
  The operation of the Scheme is regulated by the Law on Trading in financial instruments of 29 July 2005 and the KDPW Rules of Operation of the Investor Compensation Scheme
• Duties relating to the social security system
  The National Depository is responsible for the processing of transfer payments between open-ended pension funds following the decision of a participant to change pension funds, or in cases where the assets collected by the participant are to be reallocated; the National Depository also manages the compulsory Pension Guarantee Fund, made up of contributions from Pension Fund Corporations, which safeguards pension payments to fund members.