Settlement solutions to help KDPW

KDPW Group is launching two solutions to improve trade clearing and settlement systems and reduce the cost of operations.

In the clearing sector, KDPW_CCP has introduced a securities netting mechanism which will allow them to generate one settlement instruction for securities and/or cash settlement for all operations which credit and/or debit is a designated settlement account.

Iwona Sroka, CEO and president of KDPW_CCP, said: “The implementation of netting and aggregation (directional netting) of debits and credits in securities, arising from cleared transactions concluded on the regulated market or in an alternative trading system, implies improved operating standards of the clearing process resulting in a significant reduction of the number of instructions sent for settlement while reducing the cost of trade settlement.”

At the same time, KDPW is offering the automatic partial settlement functionality to optimist the trade settlement process.

The automation of partial settlement enhances the liquidity of settlement by optimising trade in KDPW and improving liquidity clearing in KDPW_CCP.

Sroka added: “Partial settlement will reduce the volume of settlement suspensions and consequently charges to KDPW participants. Furthermore, KDPW participants will be able to use the assets in their accounts to the maximum.”