The Central Securities Depository of Poland KDPW September

The Central Securities Depository of Poland (KDPW) September 2014

Overview of the Polish Capital Market Financial Supervision Authority (KNF) WSE Main Market, Bond. Spot, Catalyst, New. Connect, OTC KDPW_CCP Institutional investors National Bank of Poland Financial institutions and intermediaries Issuers Individual investors 2

join the celebrations of the 25 th anniversary of economic freedom in Poland __________________ was established in 1991 was separated in 1994, as an independent, join stock company was created in 2011 3

KDPW and KDPW_CCP 33% WSE NBP Treasury KDPW: § Trade repository service – EMIR compliant. One of the first 4 trade repositories in UE. ESMA registration of KDPW_TR (7 Nov. 2013) § LEI – one of the 14 agencies in the world allocating LEIs 33% KDPW_CCP: § Established: July 2011 § 100% of shares owned by KDPW 100 % § KDPW_CCP own capital: PLN 223 M (ca. EUR 53 M) § Central counterparty functionality through novation § Reporting to KDPW_TR (non mandatory) § KDPW_CCP the 3 rd authorised clearing house in Europe 4

Main responsibilities of KDPW and KDPW_CCP 100% Settlement Regulated Market ATS Cash OTC Central Securities Depository Managing Deposit Accounts Registering and Safekeeping of Securities Corporate Actions Operational Links with Foreign CSDs Clearing Database Management Numbering Agency (ISIN, LEI) Regulated Market Investor Compensation Scheme SPAN Guarantee Fund Va. R Collateral Management OFE Transfer Payments Exchange Clearing House (GIR KDPW) REPO OTC Derivative OTC Risk Management Asset Management Trade Repository ATS PLN Govt. Bonds T-Bills WIG 20 Companies

Central Securities Depository of Poland The functions and tasks of KDPW are set out in the Act on Trading in Financial Instruments of 29 July 2005. Main task: To organise, operate and supervise the depository-settlement system for trade in financial instruments in Poland Pursuant to Article 48. 7 of the Act on Trading…, KDPW may outsource, under a contract, the performance of specific tasks to a subsidiary. In line with this provision, KDPW has outsourced to the clearing house KDPW_CCP the performance of tasks including trade guarantees and clearing.

Main Tasks of KDPW § Managing Participants’ depository accounts in which securities are registered as electronic records § Registration and safekeeping of dematerialised financial instruments in Participants’ depository accounts § Settlement of transactions executed on regulated markets (WSE and Bond. Spot) and transactions executed outside of regulated markets (New. Connect, Bond. Spot) § Monitoring the number of securities in trading to ensure it corresponds with the number of securities issued § Corporate actions – performance of issuers’ obligations to securities holders (e. g. , dividend payment, merger of shares) § Assigning ISIN and LEI to Polish issues of financial instruments (KDPW is the national institution responsible for assignment of ISIN and LEI)

Number of Securities Accounts 1, 600, 000 1, 477, 419 1, 497, 609 1, 508, 519 1, 503, 490 1, 509, 158 2010 2011 2012 2013 08. 2014 1, 132, 602 996, 565 853, 333 1, 028, 962 908, 926 800, 000 0 2005 2006 2007 2008 2009 8

Operational Links with CSDs KDPW maintains 19 operational links with foreign depositories: 9 direct links between KDPW and a foreign depository and 10 indirect links via an international depository (Clearstream Banking Luxembourg, Euroclear Bank) or a custodian bank (Bulgaria). KDPW has both a direct and an indirect link with Slovakia. 9

Trade Repository § A trade repository is a set of information which fulfils the requirements of the Regulation of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories. § The KDPW Trade Repository became operational on 2 November 2012. § It operates under the Trade Repository Rules. 14 November 2013: KDPW_TR was registered by ESMA as one of the four first regarded TRs. 10

Registered TRs in UE (as of 12. 09. 2014) 1. DTCC Derivatives Repository Ltd. (DDRL) 14 November 2013 1. Krajowy Depozyt Papierów Wartościowych S. A. (KDPW) 14 November 2013 1. Regis-TR S. A. 14 November 2013 1. Una. Vista Limited 14 November 2013 2. CME Trade Repository Ltd. (CME TR) 5 December 2013 2. ICE Trade Vault Europe Ltd. (ICE TVEL) 5 December 2013 11

LEI Assigning On 19 August 2013, KDPW has been assigned a prefix (2594) necessary to assign identifiers – future LEI – to legal entities. According to the provisions of regulations delegated under EMIR, a relevant identifier is necessary in order to report derivative trades to a trade repository. The prefix has been assigned by the ROC Secretariat (Regulatory Oversight Committee Secretariat) and will identify codes assigned by KDPW in the global LEI system (GLEIS). The KDPW prefix has been requested by the Polish Financial Supervision Authority, which acts as a sponsoring authority in the process of ROC’s authorisation of a local unit as an LOU (pre-LOU) within the global LEI system. 12

www. kdpw. eu 13