Rules of reporting by WCCH to the Repository of KDPW S.A.

Transcription

1 Attachment No 1 to the Resolution No. 303/71/10/2016 adopted by the Management Board of Warsaw Commodity Clearing House dated on the day of October the 7 th Rules of reporting by WCCH to the Repository of KDPW S.A. Rules come into force on the day of November the 2 nd 2016.

2 1. The reporting obligation The Regulation (EU) No 648/2012 of the European Parliament and of the Council (referred to as the Regulation hereinafter) on OTC derivatives, central counterparties and trade repositories (EMIR) burdens the central counterparties (CCP) clearing houses and counterparties being a party of trading in derivatives not only in an organized trading system (ETD), but in OTC trading system as well with specified reporting obligations. The obligation of reporting all classes of derivatives came into being on the day of February the 12 th Delegating the obligation to report information regarding transactions 2.1. Warsaw Commodity Clearing House Joint Stock Company (WCCH) provides the service of reporting information about transactions, the financial instrument being quoted on the Polish Power Exchange (POLPX) are subject of which, pursuant to the Regulations of Trading on the Financial Instruments Market (FIM); the information is reported to the Transactions Repository being run by the Krajowy Depozyt Papierów Wartościowych S.A. (National Depository of Securities Joint Stock Company) (referred to as the Repository hereinafter) At present WCCH does not have the CCP status (in meaning of EMIR) The reporting obligation is delegated on the grounds of a written statement according to appropriate order of Clearing Participants of the House as well as their clients, through the agency of the Clearing Participant of the House. The fore-mentioned entities are obliged to submit the statements, prepared according to the model specified by WCCH. In the statement the entities may indicate WCCH as an entity that will submit the reports to the Repository, if such obligation to submit the reports to the repository results from relevant law regulations. The statement model has been presented on WCCH web site ( In order to assure proper transaction reporting to the Transactions Repository, till the moment of obtaining the CCP status by IRGiT, Clearing Participants of the House as well as clients of them shall be obliged to submit to IRGiT a written request concerning disclosing data of another party of a transaction by IRGiT; in the request the submitting entity shall give its consent for disclosing its data to another party of the transaction In order to avoid doubled reporting the delegation of obligation to report information about transactions to WCCH shall be tantamount with such situation that the entity delegating the reporting obligation to WCCH shall not report the transactions to the Transaction Repository in its own capacity All the fees reckoned by the Repository and regarding LEI codes of the Clearing Participants of the House and clients of them shall be re-invoiced to the Clearing Participants of the House. The re-invoice shall be issued in breakdown into LEI codes of the entities, the fees concern which. In case when the House makes the position transfer, all the fees reckoned by the Repository and resulting from the transaction reporting process, which make up the position being transferred, in behalf of both

3 parties of the transaction, shall be borne on the grounds of an appropriate accounting document by the entity that has placed the order for making such transfer WCCH sends the transaction reports to the Repository on the working day following the day of clearing of given transaction Access to the information, being passed by WCCH within the framework of the reporting agency service, shall be possible through access to the TR system of KDPW, only the Repository Participants have access to which. Information pieces regarding terms of participation in the Transaction Repository run by KDPW have been presented on web site with the following address 3. LEI Codes 3.1. Legal Entity Identifier (LEI) is a unique number identifying entities, which are parties of transactions being entered into on financial markets In accordance with provisions of the regulations delegated on the grounds of the Union EMIR Regulation, having an appropriate number identifying given entity is indispensable for needs of passing the information, regarding the concluded derivatives contracts, to the Transaction Repository. In this connection all the Clearing Participants of the House as well as their clients are obliged to pass their LEI or pre- LEI codes to WCCH Information regarding the LEI code or the pre-lei code is passed only once in the statement about delegating the reporting obligation The LEI code given by KDPW for WCCH is as follows: XUEWROVM8SP More information regarding LEI codes given by KDPW is accessible on the web site 4. TRN transaction code 4.1. All the transactions being reported to the Repository shall be marked with a unique identifier TRN (Transaction Reference Number). According to relevant requirements the TRN identifier shall include no more than 40 characters. Table 1. The algorithm of creation of the TRN identifier. Fields No Length Description Value Characters E02 E WCCH identifying code (LEI) XUEWROVM8SP Date of entering into the transaction Date format: YYMMDD Transaction No The unique transaction number given by WCCH 40 1 The tag O for original transaction K if the transaction has been entered into in result of breakdown operation (cascading) T if the transaction has been entered into in result of transfer P for creation of positions

4 5. UTI code and the reporting chain 5.1. UTI code (Unique Trade Identifier) is designed for identification of a pair of reports. In accordance with relevant regulations the code shall include 52 characters. The UTI code shall come into being after adding additional characters to the TRN code; the additional characters shall be designed for mirroring the report location in the reporting chain. The algorithm of creation of the code has been presented in Table 2 as well as Table 3. Table 2. The algorithm of creation of UTI code. Fields No Length Description Value The transaction identifier TRN Max 12 UTI code extension 00X 5.2. Till the moment of obtaining the CCP status by IRGiT the reporting chain shall take only two parties of the transaction (the counterparties) into consideration. Table 3. The algorithm of creation of UTI code depending on the position in the reporting chain. The entity obliged to report The counterparty of the party obliged to report UTI code extension The counterparty The counterparty 004 TRN004 UTI code In case of reports submitting positions on the level of individual instruments the UTI code extension takes form of Information for Clearing Participants of the House 6.1. In case when the counterparty, which is not a financial counterparty in the meaning of Article 2 paragraph 8 and paragraph 9 of the Regulation, exceeds the threshold referred to in Article 10 paragraph 2 of the Regulation, the Clearing Participant of the House of that counterparty (that client) shall be obliged to send information about exceeding the threshold through electronic mail at the following address repozytorium@irgit.pl In order to assure proper reporting resulting from delegating it to WCCH, the Clearing Participants of the House shall be obliged to submit information regarding collaterals lodged by their clients The fore-mentioned information is submitted through sending the file in.xlsx file format by electronic mail at the following address repozytorium@irgit.pl. The file should include information about the collaterals lodged by the clients of given Clearing Participant of the House, in breakdown into clearing account codes of those clients The value of the fore-mentioned collaterals is calculated as a sum of all pecuniary- and non-pecuniary resources lodged by the client to the Clearing Participant of the House

5 in order to meet the margin-related requirements for the positions, which remained opened on T day WCCH passes the reports to the Repository on condition that relevant information is submitted till a.m. on working day following the day, given transaction was entered into on which (T+1 day) The model of the.xlsx file regarding the collaterals lodged by clients of Clearing Participants of the House has been presented on WCCH web site ( 7. Reporting pricing and collaterals 7.1. The collaterals, submitted by the Clearing Participant of the House or by the client of the Clearing Participant of the House on the margin accounts, shall be reported by WCCH on the portfolio level The pricing shall be reported by WCCH for the series of the instrument being quoted on the FIM run by POLPX. 8. Reporting transactions, which come into being in result of breakdown (cascading) 8.1. The transactions, which come into being in result of breakdown of year- or quarter contract positions shall be reported as transactions, which have been entered into newly. At the same time all the transactions, which have been entered into on contracts, which were subject to the breakdown, shall be automatically terminated in the Repository If the breakdown operation (cascading) takes place on a non-session day, the transaction, which have come into being in result of the breakdown shall be reported to the Repository on the first session day following the day of the breakdown. The document revision table No Description 1 Version No 1 October the 5 th Changing the reporting model transactions, which have been entered into by Participants of the House shall be considered as bilateral contracts. Adding the obligation to submit a request for disclosing another party of the transaction. Removing provisions regarding netting of position in the Repository. Adding the provision regarding fees by the right of position transfers. October the 7 th 2016