Dear Customers,
Hereby, we would like to inform you that KELER Ltd. will be opening its direct CSD link to the Polish Central Securities Depository, KDPW.
KELER’s Polish link opening will trigger change in its service related to Polish securities effective from 28th May 2018.
Hereby, we would like to summarise you the main changes.
The new service model
Transactions of the dematerialised securities issued in KDPW will be settled directly on KELER’s securities account held in KDPW.
The cash leg of the DVP settlements (PLN), the corporate actions and taxation processes in relation to Polish securities are managed by the selected local partner, Societe Generale S.A.
In KELER’s direct link with KDPW, high level of security provided by the direct CSD relationship couples with the local knowledge and the professionality represented by KELER’s new custodian.
Changes in relation to client transactions
1. Transition process:
KELER’s clients’ current securities portfolio held by KELER’s current custodian, SIX SIS (and its Polish subcustodian) will be transferred to KELER’s account held in KDPW with value date as of 25th May, 2018.
Please note that KELER will apply shorter cut-off time being 14:00 on KID for the Polish instructions on that day.
Following the above cut-off – between 14:00 and 18:00 - KELER’s systems will undergo setup changes and the settlement of the Polish securities will be put on hold temporarily.
Transactions with intended settlement date of 28th May, 2018 or later will be settled on KELER’s account held in KDPW.
We would like to ask you to please forward KELER such instructions after 18:00 on 25th May, 2018.
The last settlement date at SIX SIS that you can instruct will be on 25th May, 2018. Pending trades which are forwarded to SIX SIS but are not settled until 25th May, 2018, will not be cancelled and will be still settled at SIX SIS after 25th May, 2018.
2. New settlement information (SSI):
As the result of the change in KELER’s custodian new settlement information will be applied after 28th May, 2018 for securities settled in KDPW:
Securities account holder: Krajowy Depozyt Papierów Wartościowych S.A. (KDPW)
- Place of Settlement BIC: KDPWPLPW
- Receiving/Delivering Agent BIC: KELRHUHB
- KELER’s KDPW Participant ID: 0871
PLN cash correspondent bank: Societe Generale S.A. Branch in Poland
- BIC: SOGEPLPW
- IBAN: PL76184000072170816008101619
- Account number: 708160081016
Following the change in KELER’s Polish custodian, please provide the cover of the money transfer initiated to the KELER PLN cash account to the above cash account held by Societe Generale (instead of the one held by SIX SIS).
3. Improved cut-off times
As a consequence of the change in KELER’s custodian, more favourable cut-off times will apply to the securities transactions performed in KDPW.
- DVP transactions: SD 09:00 (instead of SD-1 17:00)
- FOP transactions: SD 17:00 (instead of SD 11:00)
- PLN pre-advice and foreign currency transfers: VD 13:00 (no change)
4. Required contents of client instructions
The following information is required to be instructed on the Polish settlement transactions when initiating in KID.
- KDPW participant number of the receiving / delivering agent of the securities (4 digits)
- Field ’Place of trade’ needs to contain the type of the transaction. The value may be a matching criteria on the local market as well as it serves as basis of potential stamp duty obligation.
- EXCH/XWAR: if post-trade or „broker to custodian” type of transaction, i.e. it is connected to an on-exchange transaction
- OTCO: if the trade is a standard OTC trade (not related to an on-exchange transaction)
- KDPW/INXX: in case of FOP portfolio transfer (no change in the beneficial owner)
5. Launch of Relief at Source and Quick Refund services
As a new service in connection to the Polish securities, KELER launches Relief at Source (application of reduced tax rate on the basis of obtaining beneficial owner documents) as well as Quick Refund (collection and transmission of documents to KDPW for tax reclaim in accelerated process) tax services.
KELER’s tax reclaim service will be launched in a later phase. KELER may assist its clients in obtaining tax declaration(s) per event and per beneficial owners.
Please contact your relationship manager for fees of KELER’s Polish tax services.
6. Compulsory account segregation
KELER is obliged to comply with the applicable regulations of the Polish CSD whereas segregation of securities positions owned by legal entities and natural person clients (beneficial owners) is a requirement. Opening a dedicated subaccount aggregated on client level for securities positions owned by natural person client is required. Securities of legal entities can be held on the account holder’s existing omnibus and client sub-accounts, too.
7. Update to depository announcements
Depository announcements updated with the above changes are published on KELER’s website.
Please note that settlements of Polish T-bills in the Polish National Bank (Narodowy Bank Polsky, BIC NBPLPLPW) will be further completed via SIX SIS!
For further information, please turn to KELER’s Account Management Department () for settlements and Corporate Action and Issuer Services Department () for corporate actions and taxation services.
Kind regards,
KELER Ltd.