Polish Financial Supervision Authority Authorises KDPW as ARM
On 31 July 2018, the Polish Financial Supervision Authority (KNF) authorised Krajowy Depozyt Papierów Wartościowych (KDPW, The Central Securities Depository of Poland) to provide transaction reporting services as an Approved Reporting Mechanism (ARM). As an ARM, KDPW is authorised to provide transaction reporting services in the European Union.
The ARM is a mechanism of reporting details of transactions in financial instruments on behalf of clients to supervisory authorities under the requirements of MiFIR.
From 3 January 2018 until the date of the KNF authorisation, KDPW operated an ARM under transitional regulations and reported transactions for 53 investment firms. The KDPW ARM reported more than 34 million transactions in financial instruments on behalf of clients over that period.
“KDPW offers flexible reporting models tailored to clients’ needs as necessary to report the complete range of required data via ARM, including data reported to the trade repository and transaction data from the markets operated by the Warsaw Stock Exchange (GPW) and BondSpot. Simplified transaction reporting models allow participants to largely reduce the volume of transmitted data in compliance with MiFIR,” said Sławomir Panasiuk, Vice-President of the KDPW Management Board.
“The ARM authorisation comes as a part of KDPW’s strategic efforts to develop an integrated portfolio of services supporting the functioning and growth of the Polish financial market. Like all our key services, ARM is offered to clients across the European Union. The ARM reports transaction details to the competent supervisory authority of the country the entity with the reporting obligation. At this time, KDPW reports transactions on behalf of clients to the Polish Financial Supervision Authority as well as the FSAs in Malta, Portugal and the United Kingdom, and may in the future report to other supervisory authorities depending on clients’ needs,” said Michał Stępniewski, Vice-President of the KDPW Management Board.
KDPW’s competitive advantage as an ARM
Benefits of KDPW_ARM services for clients
- Long-time experience in the provision of certified post-trade services.
- Rational business model based on existing relations with local and foreign supervisory authorities including processing, availability and quality of reported data.
- Automated secure communication interface supporting regular and uninterrupted compliance with the reporting obligation.
- Low and competitive fees.
- Synergies for existing clients of KDPW Group.
- Comprehensive post-trade service.
- Simplified model of reporting market transactions.
- Concurrent compliance with the reporting obligations under the requirements of MiFIR and EMIR.
- Use of existing technical infrastructure.
Polish and foreign entities which have the reporting obligation and use KDPW’s ARM service benefit from:
- KDPW’s experience and complementary services
KDPW has provided trade repository services under EMIR since 2013, building experience and developing technologies and procedures in collecting and maintaining details of transactions in derivatives.
KDPW offers reporting models tailored to clients’ needs, including data reported to the trade repository and transaction data from GPW and BondSpot.
KDPW offers an automated secure communication interface and a robust model of relations with supervisory authorities and members. It ensures regular and uninterrupted compliance with the reporting obligation. As an ARM, KDPW accepts legal liability for incomplete and late reporting on behalf of clients to supervisory authorities.
- Broad range of validation
The ARM service offers mechanisms ensuring complete and correct reporting, including the detection of obvious errors and omissions. The mechanisms are a set of formal and content checks performed by the ARM.
What types of transactions are reported by KDPW ARM?
KDPW offers reporting of all types of transactions and all types of financial instruments covered by the reporting obligation under the requirements of MiFIR. Reporting uses data including data sourced from:
- trading venues – GPW and BondSpot,
- reporting to the trade repository KDPW_TR,
- direct reporting of investment firms to the ARM.
Figure 1. KDPW Group’s certified services offered under EU law