Implementation of the conditional transaction (repo) clearing service


What is the timeframe for the implementation of the conditional transaction (repo) clearing service by KDPW_CCP?

As regards conditional transactions, clearing will be mandatory for classic repos. Buy-Sell-Back and Sell-Buy-Back, Tri-party repo and Trade Registration transactions will not be cleared by the CCP.

The timetable for the implementation of repo clearing in the CCP is as follows:

30 September 2021 The Participants are notified about the modifications to the KDPW_CCP IT systems planned for 2022 (see also: KDPW_CCP presentation)
22 November 2021 Changes in the clearing and collateralisation of conditional transactions (repos) concluded on TBSP are released in kdpw_stream’s TSTB environment
10 January 2022 Start of testing of repos concluded on BondSpot (TBSP) and cleared by KDPW_CCP
The kdpw_stream TSTB test environment will be available as of 3 January (modifications will be implemented in kdpw_stream TSTA two weeks before the roll-out date, as usual)
15 February – 15 April 2022 Update of TBSP Participant documentation (CCP membership certificate and changes to the Participant Card)
23-24 April 2022 Roll-out of the KDPW_CCP clearing service for repos concluded on Treasury BondSpot Poland
25 April 2022* Launch of the repo clearing service

* Subject to approvals to be obtained by the CCP and BondSpot

Will the rules for conditional (repo) transactions change?

Yes. Following the launch of the repo clearing service, the trading hours in the conditional transaction segment will change (08:30-16:45, including 08:30-14:15 for ON trades). The start time of trading will change from 07:45 to 08:30. The end time of trading will remain unchanged (16:45). The change is due to the current schedule of payments to the CCP (margins, funds) where the accounts of payer banks of Clearing Members are to be debited 15 minutes before the session opens (in practice, transfers are executed as of 08:00), followed by credit transfers.
In addition, repo trading (as opposed to BSB/SBB) will be completely anonymous (the other trading party will not be identified because KDPW_CCP acts as counterparty after novation).
Clearing instructions for classic repos will be presented for clearing in KDPW_CCP on-line immediately after the transaction is concluded.

What are the technical requirements to enable repo clearing in the CCP?

Margin requirements are communicated in the following messages: colr.mrg.001.03, colr.mrs.001.03. However, the structure of those messages does not accommodate the specificity of repos, which is why new message versions will be released with the implementation of solutions supporting the clearing of repos concluded on BondSpot/TBSP:

colr.mrg.001.04 Margin payment details
colr.mrs.001.04 Transaction limit status report

In addition to the existing fields: InitlMrgn, MtM, LCMrgn, WWRMrgn, the new version of the messages will include additional fields applicable only to repos:
1) WR (marking to market for repos, which may be negative)
2) DZR (repo rate margin).

The level of data aggregation will remain unchanged, i.e., aggregation at clearing account level. The new fields will be optional to ensure that only those clearing members who execute repos need to align with changes to the standard messages. In order to maintain the correct break-down of the overall margin requirement, information on margins for repos at clearing account level will be presented in a separate section (margin requirement at clearing account level in the repo market) in addition to the existing sections: CshMktSttlmSafAcct (margin requirement at clearing account level in the cash market), DrvtvMktSttlmSafAcct (margin requirement at clearing account level in the derivative market).

Details concerning the system messages are available on the KDPW_CCP website under

What are the necessary steps to testing transactions?

In order to start testing :
Be sure that you are connected to test environment through transaction application.
If you use MMF Client you should check: General Setting -> Connection (Direct) -> Test
Member using other application should contact with appropriate provider to configurate test environment.

The following is configuration of the Access Points dedicated to MMF Market

Front End 1
Front End 2
Front End 3
Front End 4

Then you should contact in order to enter info testing transactions.

If you choose:
REPO profile – you can test only repo classic transaction
BOTH profile – you can test bsb/sbb and repo classic
BSB profile – you can test only bsb/sbb

KDPW test environment: B