Poland: Direct access to Polish CSD KDPW for EUR denominated mortgage bonds and DVP settlement in EUR via TARGET2 account
Effective
30 January 2017
Clearstream Banking1 will deposit EUR denominated mortgage bonds on its direct account at the Polish CSD KDPW and allow customers to settle all against payment transactions on those securities in EUR through its account at TARGET2.
This direct account will enable future service upgrades and will continue to be operated by our agent on the Polish market Citi Handlowy.
The link to Poland for securities other than EUR denominated mortgage bonds remains unaffected by the changes.
Impact on customers
Settlement process
The instruction formats, reporting and service level will not change.
Pending transactions
All pending instructions will be converted automatically to our direct account at KDPW. No action will be required from customers.
Settlement deadlines and times
Settlement deadlines for against payment in EUR and free of payment EUR denominated mortgage bonds will be as follows:
EUR denominated mortgage bonds | |||||||
Instruction | Provisioning | Deadline for receipt of valid instruction | Expected settlement results | ||||
start | end | from | to | value | |||
Receipts | FOP | 12:00 | 15:55 | 13:55 | 11:30 | 17:00 | |
AP (OTC) a | 04:30 | 13:55 | 11:55 | 11:30 | 17:00 | SD | |
AP (SE) a | 04:30 | 10:25 | 08:25 | 11:30 | 17:00 | SD | |
Deliveries | FOP | 12:00 | 15:55 | 13:55 | 11:30 | 17:00 | |
AP (OTC) a | 04:30 | 13:55 | 11:55 | 11:30 | 17:00 | SD | |
AP (SE) a | 04:30 | 10:25 | 08:25 | 11:30 | 17:00 | SD | |
a. Against payment settlement is not available for EUR-denominated Polish covered, corporate and municipal bonds.
b. For free of payment trades in covered, corporate and municipal bonds, customers are recommended to send their instructions before 14:30 on SD.
Note: There is no change to the settlement deadlines applicable to against payment transactions in Polish Zloty.
Procedure for domestic counterparties
Please advise your domestic counterparties to instruct as follows for the settlement of EUR denominated mortgage bonds as from the effective date:
Deliver to: Clearstream Banking S.A (BIC CEDELULL or Clearstream code 0864 in KDPW (Polish CSD)).
For mirror account of: Clearstream Banking S.A. in Bank Handlowy (CITIPLPX) account number 0502343100.
In favour of: name and account number of CBL customer
Tax
Please refer to Announcement A17032, dated 31 January 2017, detailing the applicable tax relief procedures and the documentation requirements for EUR denominated mortgage bonds.
Further information
The Creation Link Guide – Poland will be updated in due course.
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 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, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.