Poland: Polish CSD introduces an additional fee for late instructions
Effective
1 March 2015
the Polish CSD, Krajowy Depozyt Papierow Wartosciowych (KDPW), will introduce a new “late instruction fee” to all same day settlement instructions submitted to the CSD after 10:30, for trades related to on-exchange equities trades (settled as per Article 121 of the Law on Trading in Financial instruments). This additional fee will be 25 PLN (the equivalent of 6.8 EUR).
Impact on customers
There is no impact for transactions in T-bonds which are all processed OTC and the small part of equities which are settled OTC.
There will be no change to the customer instruction deadline for settlement of equities against payment. Currently Clearstream Banking1 offers customers a deadline of SD 10:25 for transactions of this nature.
In order to optimise the pre-matching process, we strongly encourage customers to send their equities on-exchange settlement instructions by 08:55 on SD, to ensure that our depository will be able to do the pre-matching with the local counterparty before sending the instruction to KDPW. This pre-matching process still happens via phone and requires time.
For the time being, Clearstream has decided not to pass on these additional costs to customers. Should this situation change, customers will be informed accordingly.
Note: All times in this document are Central European Time (CET). The deadlines shown above are valid provided that the customer's instructions are complete, accurate and eligible for straight-through processing (STP) in CBL and in the local market. Customers must also ensure that any necessary provision is available. If any of these criteria are not met, CBL cannot guarantee timely settlement.
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.