Poland: Partial settlement service
Effective
15 November 2015
Clearstream Banking1 will offer an optional partial settlement service for domestic instructions based on the conditions described below.
According to the Polish CSD KDPW request (§58 of KDPW’s rules), customers will be informed regarding the specific rules applicable to partial settlement as described in §57 of the aforementioned rules.
The rules applicable to the partial settlement cover both DVP (against payment) and FOP (free of payment) trades (subject to the limitation described hereinafter).
However, partial settlement will not be applicable to:
- Repo and buy-sell-back trades; or
- FOP transactions, that are not so called Art. 121 FOP trades.2
Thresholds applicable to partial settlement
Partial settlement for OTC transactions is applied if the original instruction has a minimum settlement amount of at least PLN 20,000,000 (around EUR 5,000,000) and where a minimum trade value of PLN 5,000,000 (around EUR 1,250,000) can be settled during the first partial settlement process.
Partial settlement is applied during each RVP/DVP KDPW settlement batch (currently at 10:30, 13:00 and 15:30 CET).
Clearstream Banking will not accept any standing instruction at customer level to request partial settlement on a systematic basis. Partial settlement is an optional service provided upon special and express request of the customers in accordance with KDPW’s rules.
Impact on customers
Partial settlement service is offered only if it is expressly requested by the customers and their counterparty on their side.
For customers instructing via SWIFT
If a customer wants to specify in the original instruction that partial settlement is allowed, the settlement condition indicator :22F::STCO//PART must be used.
For customers instructing via CreationOnline
The “allow partial” option must be selected.
Note: The partial settlement service is subject to an additional charge by KDPW (currently 5 PLN per each partial settlement). This charge is included in the settlement cost.
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.
2. Article 121 of the Law on Trading in Financial instruments.