Summary of the KDPW Group Strategy 2017-2021
The KDPW Group is comprised of two companies: KDPW S.A. and KDPW_CCP S.A. In addition to typical infrastructure services, such as: clearing of transactions on the organised market, management of the clearing liquidity guarantee system, settlement of transactions, operation of a central securities depository, it also provides value-added services closely related to the core business of the Group. The core services and the value-added services make up a comprehensive offer for Polish and foreign financial market participants active in Poland. The value-added services include: OTC derivatives clearing, reporting of transactions in all classes of derivatives to the trade repository KDPW_TR, issuance of LEIs, processing of repos.
The KDPW Group’s development strategy for 2017-2021 was approved by the KDPW S.A. Supervisory Board in December 2016.
Mission of the KDPW Group
To offer effective and reliable services that ensure the safety of trading on the financial market, and cover:
- depository and settlement;
- reporting to a trade repository;
Vision of the KDPW Group
- other services in business segments closely related to the core activities of the Group including the implementation of solutions supporting the functioning and development of the Polish financial market.
To create an organisation which:
Strategic goals of the KDPW Group in 2017-2021
GOAL 1: To maintain and develop the position of the KDPW Group as a first-choice provider of post-trade services for the Polish financial market in view of market challenges posed by EU regulations
- uses innovative technologies to build an integrated portfolio of post-trade services and value-added services in a comprehensive offer for financial market participants;
- works for the stability of the Polish financial system in active co-operation with Polish and foreign market participants;
- addresses market needs and challenges of competition as a post-trade infrastructure institution of first choice for Polish entities active on the local and international market and for foreign entities active in Poland.
by means of:
GOAL 2: To diversify revenues by offering value-added services of the KDPW Group derived from business and regulatory opportunities and the needs of participants of the Polish financial market and trading organisers
- ensuring competitive services to market operators, participants, issuers and investors in view of changing regulatory and market conditions by providing core services in the following areas:
- registration of securities as well as operation of a central registration system and a settlement system (KDPW);
- clearing of transactions on organised markets in different classes of assets (KDPW_CCP);
- obtaining authorisations of services in compliance with EU regulations;
- maintaining the position of a first-choice institution for Polish:
- trading venues in the clearing and settlement of listed financial instruments;
- issuers (KDPW as the issuer CSD),
- clearing system participants in the clearing of transactions on organised markets;
- participants of the settlement system for securities deposited in KDPW as the issuer CSD.
by means of:
GOAL 3: To strengthen the importance of the KDPW Group in offering cross-border services for foreign entities active on the Polish market and Polish entities active on foreign markets
- developing a comprehensive offer of value-added services of the KDPW Group complementary to the core services, aligned with the changing needs of participants, both on the organised and OTC markets, and tailored to the needs of trading operators;
- obtaining the necessary authorisations for value-added services of KDPW Group, including potential capital adjustments;
- removing barriers to the development of services for financial markets in Poland in co-operation with market participants and related entities.
by means of:
GOAL 4: To improve the efficiency of the KDPW Group in view of market and technological challenges while maintaining the infrastructural profile of the institution
- removing barriers to the access of foreign clients to clearing and settlement in Poland and access of Polish investors to clearing and settlement of securities on foreign markets via the KDPW Group;
- implementing recognised international technologies and harmonising solutions to support effective cross-border exchange;
- leveraging business and regulatory opportunities of co-operation between the KDPW Group and foreign infrastructure institutions;
- representing by the KDPW Group companies the interests of the Polish capital market in the development of opinions and positions on draft international regulations and standards through the work of international industry organisations of CSDs and CCP clearing houses, working groups and fora.
by means of:
The strategic goals will be pursued by means of initiatives, among others:
- improving the efficiency of technologies including:
- prioritising standard operational and technological solutions compliant with the international market practice;
- development of the KDPW Group’s IT systems;
- offering new methods of access by participants to the KDPW Group’s IT systems;
- raising the excellence of maintenance standards and change management of the KDPW Group’s IT systems;
- improving risk management to support the security of information communication technology in line with the latest standards and market practice;
- developing the KDPW Group’s fee policy taking into account:
- low margins on offered services;
- the size of the market, changing trends in the competitive environment, regulatory requirements;
- effective management of resources based on:
- existing and new competences by building human capital;
- research and development policies matched with the needs and goals of the organisation.
- Implementation of ARM solutions under MIFID/MIFIR;
- Harmonisation of the trade repository with SFTR;
- Identification of opportunities for KDPW_CCP to provide CCP services in other markets including foreign markets; potential participation in the integration of clearing services in the CEE Region;
- Implementation of OTC derivatives risk management optimisations;
- Extension of KDPW_CCP services dedicated to clients of clearing members (client clearing);
- Co-operation with trading venues to initiate clearing and guarantees of transactions in bonds and repo transactions on the OTC market;
- Development of services related to KDPW’s omnibus accounts for foreign entities;
- Co-operation with Eurozone CSDs which use operational links with KDPW in order to obtain the ECB eligible status for the links;
- Review of the position on the decision concerning KDPW joining TARGET2-Securities;
- Simplification of participants’ access to the KDPW Group’s IT systems;
- Identification of opportunities for business applications of new technologies (DLT).