KDPW, the Polish trade repository and central securities depository (CSD), has gained approval for its buy-in reporting messages from SWIFT ISO20022 ahead of the Central Securities Depositories Regulation (CSDR) go-live in February 2022.
CSDR’s settlement discipline regime will bring in mandatory buy-ins in response to failures to settle trades, along with cash penalties.
KDPW will implement the buy-in reporting ISO20022 messages in the second phase of alignment with the CSDR settlement discipline requirements in February 2022.
As the first messages ever to be registered, they set the buy-in reporting standard, developed from scratch in ISO20022, KDPW says.
The standard defined by KDPW and approved by ISO20022 will apply internationally.
The messages will also be available in the SWIFT network as of the next standard release scheduled in November 2021.
The ISO20022 registration followed a complex process including an application, justification, documentation, gathering support, and consultations with international institutions and organisations including SWIFT, the Securities Market Practice Group, Keler, Euroclear, National Bank of Belgium, VP Securities.
The process also required the blessing of the ISO20022 registration management group, ISO200222 registration authority, ISO20022 CSDR evaluation team, and ISO20022 standards evaluation group.
KDPW processes ISO20022 settlement messages in addition to proprietary XML messages and SWIFT ISO15022 messages since 2017. The list of supported ISO20022 messages is steadily growing.
KDPW was licensed to act as a CSD under CSDR by the Polish market authorities in March 2020.
The European Commission recently concluded a market consultation on CSDR including the settlement discipline regime where multiple stakeholders called for the
buy-ins to be made a discretionary decision in the case of settlement failure.
The commission's response to the review is expected in Q3.
