KDPW is latest CCP to do securities lending
01 October 2014 Warsaw
Image: Shutterstock
KDPW_CCP has launched a negotiated securities lending and borrowing system in Poland.
The Polish central counterparty and the country’s central securities depository, KDPW, said that securities lending within the negotiated lending system is designed to prevent or eliminate the suspension transaction settlement in organised trading.
It will also ensure the return of securities loaned in the automatic lending system, they added.
The objective of negotiated securities lending is to enable system participants to conclude loans and to ensure their comprehensive processing, including loan management, clearing and settlement from the conclusion of an agreement to the final termination of the loan.
The lending system will support the functions of posting the need for a loan, negotiating terms, and concluding agreements. Loan duration and fees will be open to negotiation. Loans can also be fixed or open.
Under the system, parties will be anonymous before, during and once a loan is complete. KDPW_CCP will guarantee loaned securities and any collateral through a separate liquidity clearing system.
The Polish central counterparty and the country’s central securities depository, KDPW, said that securities lending within the negotiated lending system is designed to prevent or eliminate the suspension transaction settlement in organised trading.
It will also ensure the return of securities loaned in the automatic lending system, they added.
The objective of negotiated securities lending is to enable system participants to conclude loans and to ensure their comprehensive processing, including loan management, clearing and settlement from the conclusion of an agreement to the final termination of the loan.
The lending system will support the functions of posting the need for a loan, negotiating terms, and concluding agreements. Loan duration and fees will be open to negotiation. Loans can also be fixed or open.
Under the system, parties will be anonymous before, during and once a loan is complete. KDPW_CCP will guarantee loaned securities and any collateral through a separate liquidity clearing system.
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