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Fees

Fees charged for the negotiated securities lending and borrowing service are set out in the Table of Fees attached to the KDPW Rules. The below information is an extract from these Rules and is indicative only. The final version will be published two weeks before the implementation of the system.

Fees charged for the negotiated securities lending and borrowing service

The structure of fees charged in the negotiated lending and borrowing system reflects the nature of negotiated loans which, unlike automatic loans, are not loans of last resort.

  1. The fee due to the lender is not charged at a fixed rate set in the KDPW Table of Fees but is negotiated individually for each loan agreement between the parties. This allows for differentiation of the fee under the terms of a loan agreement depending on parameters including the current liquidity and the volatility of prices of loaned securities. Fee will be set as a yearly rate (%), and calculated based on the current loan value.
    The interest due to the borrower, who delivered cash collateral to the lender, will be based on the current POLONIA rate and the current loan value.
  2. The main fees due to KDPW for processing of loans concluded in the negotiated lending and borrowing system include:
    • fee for registration of a loan agreement, and
    • fee for accruing interest or a fee.
  3. Disciplinary fees
    • Fee charged for withdrawal of a party from a loan agreement.
    • Disciplinary fees include the fee charged where a borrower is in default under the obligation to pay a fee due to the lender or where the lender is in default under the obligation to pay interest to the borrower.
    • A similar role is played by the fee for failure to return a loan concluded in the negotiated lending and borrowing system or to refund the contractual cash collateral of a loan in due time.
Last modified:07-07-2014 Go up