Poland's KDPW_CCP launches negotiated securities lending system

The negotiated securities lending and borrowing system organised by KDPW_CCP in co-operation with KDPW has launched on 1 October 2014.

Securities lending within the negotiated lending system is designed to prevent the suspension of settlement or eliminate suspension of settlement of transactions concluded in organised trading and ensure the return of securities loaned in the automatic lending system.

The objective of negotiated securities lending is to enable system participants to conclude securities 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 supports the functions of posting the need for a loan, negotiating the terms of loan agreement, and concluding securities loan agreements. Certain parameters of loan agreements are negotiated including among others the duration of the loan and the fee for the lender.

Securities loans in the system can be concluded:

  • for a fixed term,
  • without a fixed term.

The parties to a loan are mutually anonymous. The lender and the borrower are mutually anonymous both prior to the conclusion of a loan agreement and within its term.

The return of a loan concluded in the system, i.e., the return of securities to the lender and the return of the provided contractual collateral to the borrower, is guaranteed with the resources of a separate negotiated loan clearing liquidity guarantee system managed by KDPW_CCP.

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