Market Link Guide - Poland

08.10.2021

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect via Bank Handlowy S.A., Warsaw to:

  • National Bank of Poland (NBP),

Direct Operated via Bank Handlowy S.A., Warsaw to:

  • Krajowy Depozyt Papierów Wartościowych (KDPW) for EUR denominated mortgage bonds

a. CSD Regulation (EU) No 909/2014, Article 2(29).

CSD

Custodian/Account Operator

Name

National Bank of Poland (NBP)

Krajowy Depozyt Papierów Wartościowych (KDPW)

Bank Handlowy S.A., Warsaw

FATCA GIIN

NBP: Not available

KDPW: 02JM6C.00000.LE.616

NXUTG8.00324.ME.616

LEI

NBP: not available

KDPW:  259400L3KBYEVNHEJF55

XLEZHWWOI4HFQDGL4793

Country of incorporation

Poland

Poland

Account type

Omnibus account

Omnibus account/mirror omnibus account for account operator service

Legal account name/holder

NBP: Bank Handlowy S.A. as participant holds an individually segregated account for Clearstream Banking S.A.

KDPW (indirect link): Bank Handlowy S.A. as participant holds an individually segregated account for Clearstream Banking S.A.

KDPW (direct operated link): Clearstream Banking S.A.

Clearstream Banking S.A.

Operational arrangements

Yes/NoRemarks
Settlement in T2S

No

Settlement free of payment

Yes

 Stamp duty may be applicable.

Settlement against payment

Yes

Stamp duty may be applicable.

Eligible settlement currencies: Polish Zloty (PLN); Euro (EUR) only for EUR denominated mortgage bonds.

Equities/warrants/rights: Stock exchange and OTC settlement.
T-bills: OTC settlement.
T-bonds: Stock exchange (if traded on the WSE) and OTC settlement.
Covered, corporate, mortgage and municipal bonds both for stock exchange (if traded on the WSE) and OTC settlement.

Settlement against payment in central bank money account of CBL/CBL customers

No/Yes

CBL holds a cash account at the custodian for against payment settlement in PLN that takes place on the cash account of Bank Handlowy S.A., Warsaw at National Bank of Poland.

Against payment settlement in EUR (only for EUR denominated mortgage bonds) takes place on CBL's account in TARGET2.

Bridge settlement

No

 
Shaping facility

No

 
Partial settlement

Yes

Upon request from customer and with the agreement of the counterparty.

Settlement penalty fees

No

 
Pre-matching

Yes

 
Back-to-back processing

No

 
Allegements

Yes

 
Automatic compensation

No

Only if transactions are executed with local broker or remote dealer on the WSE and are suspended by KDPW, KDPW will process automatic compensation.

Registered securities

No

 
Multi Market Securities

Yes

 
Lending and borrowing

Yes

ASL only.

Proxy voting

Yes

 
Investment Funds

No

 
Liquidity Hub Connect

No

 
Sale and purchase of rights

No

 
Repo services

Yes

Government bonds only.

Market restrictions

Yes

See holding restrictions.

FTT

No

 
Daily reconciliation

Yes

 
Link eligible for use in Eurosystem credit operations

No

 
Moment of entry of instructions

NBP: Operations on T-bills are registered on the basis of orders entered and approved by the participant in the NBP system. Upon approval of the order by the participant, the order shall be deemed entered in the NBP system.

KDPW: Settlement instruction is considered to have been introduced to the depository system from the moment it has been delivered to KDPW according, as appropriate, to the requirements defined in KDPW rules.
Irrevocability of instructions

NBP: When orders from  buyer and seller are entered and approved by participants in the NBP system and if there is sufficient number of relevant T-bills, not blocked due to any title, on the deposit account of a participant acting as the seller, order cannot be revoked by participant.

KDPW: The settlement instruction, introduced to the depository system by direct participants, may not be cancelled from the system from the moment KDPW has determined that the instruction matches with the corresponding instruction introduced to the depository system by a direct participant acting as the settlement counterparty.
Finality of instructions

NBP: When orders from buyer and seller are submitted to NBP system, system matched them and where there is sufficient number of relevant T-bills on the deposit account of a participant acting as the seller, it generates payment instruction and passes it to  the system of current accounts. When there is enough money  on buyer’s cash account, T-bills are moved in NBP system from seller’s deposit account to buyer’s deposit account. The transfer is final.

KDPW: Settlement is final when the securities are transferred to the buyer’s account at KDPW and the cash is transferred to the selling participant’s account at the NBP.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 27 September 2021 (indirect link) and 13 September 2021 (direct operated link).

The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

No insolvency proceedings against the custodian/account operator

Confirmed.

Liability for negligence

Confirmed.

The CSD is liable for lost profit if such loss results from the CSD's willful misconduct or gross negligence.

Book-entry regime with in rem rights

CBL has no right in rem on the securities credited to the omnibus account at the CSD (direct operated link) or the custodian (indirect link). The persons indicated by CBL to the custodian as being entitled to the securities will be considered as the person having a right in rem.

No entitlement of the account operator/CSD  

Confirmed in respect of securities credited to direct account of CBL

Recognition as direct CSD account-holder

Confirmed in respect of securities credited to direct account of CBL.

Recognition of nominee concept

Confirmed.

No right of retention to the custodian/account operator

Confirmed.

Segregation of assets at the custodian/account operator/CSD

Confirmed  in respect of securities.

No right of use

Confirmed.

No upper-tier attachments

Confirmed.

Insolvency of the custodian /agent with no impact on CBL's rights 

Confirmed.

Shortfall pro-rated among holders

There are no clear provisions regulating shortfall.

Record keeping period of at least 10 years

Local law requirements of five years.

Settlement finality in case of insolvency

Confirmed.