The National Depository for Securities (KDPW) is following it's corporate Strategy 2010-2013. The key task of the Management Board is to prepare KDPW for increased foreign competition and market consolidation. The Strategy is aimed at building the regional position and competitiveness of KDPW. It is a proactive growth strategy.
Competitive Environment
The main threats in the competitive environment include: aggressive operation of new pan-European MTFs (electronic trading platforms) and their clearing houses; formation of a capital group around the Vienna Stock Exchange; and consolidation of European depositories. Market developments resulting, among others, from the implementation of MiFID are also impacting the CEE region. They bring about new threats but also offer opportunities of KDPW's entry to new markets and active participation in niche markets in this part of Europe.
KDPW Vision
The KDPW vision is to build a robust Capital Group by 2013: to anticipate competitive challenges; to build a service portfolio based on state-of-the-art, innovative technologies and solutions creating value for capital market participants; and to support the development of a regional centre in Warsaw in active co-operation with other Polish and foreign market participants with KDPW as the main depository-settlement institution in Central and Eastern Europe.
Strategic Goals
The KDPW Strategy 2010-2013 is pursued through actions built around 8 strategic goals:
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Introduction of a new KDPW business model - development of a holding structure. The biggest and most complex project was the spin-off of a Central Counterparty Clearing House (CCP). The project reduced the risk and burden to Polish capital market participants. The first stage was a spin-off of a settlement guarantor as a separate company with the single task of supporting the liquidity of settlements of regulated market transactions with its own funds. The next phase was the creation of KDPW_CCP clearing house with a modern risk management system based on SPAN technology. Finally, in 2012 KDPW_CCP will be equipped with the transaction netting functionality reducing the cost of settlement thanks to significant reduction of settlement instructions submitted to the Depository.
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Positioning KDPW as the main depository-settlement institution in Central and Eastern Europe - stimulating the activity of Polish market participants in the region as an opportunity to grow the Polish capital market. The goal includes a joint foreign listing policy pursued together with the WSE and other market participants; improvement of the profitability of existing interoperability with depositories in the region and development of new transborder interoperability; and leveraging of KDPW experience of KDPW_CCP development in order to offer settlement services in the markets of the region.
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KDPW integration with European structures - reducing the barriers to EUR payments and transborder settlement of securities. The two main projects include: Target2 (KDPW will join the real-time EUR cash settlement system in EU Member States organised by the central banks of France, Germany and Italy) and Target2Securities (technical readiness to outsource domestic and foreign securities settlement infrastructure to the T2S platform operator).
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Launch of new services growing the value of the Capital Group - leveraging the key competences of KDPW as an infrastructure institution in order to enter new market segments by developing central solutions and introducing standards reducing the cost of many systems currently used by market operators. Activities will focus on implementation of Electronic Trade Confirmation; development of OTC settlement services; and implementation of transborder settlement services - Delivery versus Payment (DvP).
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Improved quality and scope of existing services - building KDPW participant loyalty by active improvement of settlement solutions. This goal includes the following projects: Omnibus account services for foreign CSDs; hold-release mechanism for matching settlement instructions; development of a securities lending system; development of corporate actions services.
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Optimisation of operational processes in the Capital Group in order to implement the Strategy and ensure effective operation of all Group companies.
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Strengthening the commitment and competences of Capital Group staff to implement the KDPW Strategy 2010-2013 - continuous development of staff skills and competences in order to improve the organisational culture and a proactive approach to business as a factor growing the competitiveness of KDPW.
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Promoting the image of the KDPW Capital Group and its service offering through corporate communications - building the KDPW brand as a leading depository-settlement institution providing state-of-the-art technological services according to high security and reliability standards and at a low cost.
For more information about the KDPW Strategy 2010-2013, see the attached presentation
KDPW Strategy 2010-2013