Centrálny depozitár cenných papierov SR, a.s. (CDCP) and Národný centrálny depozitár cenných papierov, a.s. (NCDCP) concluded an agreement on transfer of client assets from NCDCP to CDCP. Conclusion of the agreement is the next step towards creation of a single central securities depository in Slovakia, about what the involved parties informed in February the last year. For that reason Národný centrálny depozitár cenných papierov, a.s. at the end of the last year submitted a notice on the intention to waive the authorisation to act as a central securities depository to the National Bank of Slovakia. The aim of this transaction is to create a single, advanced central securities depository that shall provide the services efficiently and on a highly professional level. Therefore the single central securities depository – CDCP – will operate and provide services in Slovakia with ambition to continuously comply with requirements of the European legislation and the international standards.
On the basis of concluded agreement Národný centrálny depozitár cenných papierov, a.s. shall transfer all client assets to Centrálny depozitár cenných papierov SR, a.s., thereby CDCP taking over all clients to which NCDCP provides its services. „Transfer of assets of NCDCP clients will not impact the existing clients of CDCP, whether these are participants, issuers or account owners,“ according to Martin Wiedermann, the Managing Director and the Chairman of the Board of Directors of Centrálny depozitár cenných papierov SR, a.s. „The services provided to them by our central depository will not be impacted in any way.“
„We made another crucial step to accomplish creation of the single central depository in Slovakia“, says Peter Dávid, the Managing Director and the Chairman of the Board of Directors of Slovenská záručná a rozvojová banka, a.s., that is the sole shareholder of NCDCP.
Clients of NCDCP
NCDCP shall send information on planned transfer of client assets to CDCP to all its clients with concluded agreement on provision of central depository services. „We want to assure you, that until the moment of the assets transfer, NCDCP will continue to fulfil all its duties and provide you professional services as it does today. The NCDCP clients will not be required to make any active steps in connection with this transaction“, says Ing. Ľubor Jenis, the Managing Director and the Chairman of the Board of Directors of Národný centrálny depozitár cenných papierov, a.s. In relation to the assets transfer, CDCP as the receiving central depository commits itself, from the day of assets transfer, to fulfil all duties of central depository towards NCDCP clients whose assets will have been transferred to CDCP. „From the day following the assets transfer we will provide clients of NCDCP with services in scope and under conditions laid down in the regulations of Centrálny depozitár cenných papierov SR, a.s.,“ says Martin Wiedermann. „We want to amend also our Rules of Operation in order to ensure continuous provision of services to clients whose assets will be transferred from NCDCP to CDCP.“ Specific information and requirements applicable to provision of services after the assets transfer will be communicated by CDCP directly to clients of NCDCP in sufficient time prior to execution of assets transfer.
Date of the assets transfer
Currently, both depositories started intensive preparations of the technical part of client assets migration. Precise date of the assets transfer should be agreed in three months from the agreement date. The depositories expect that the transfer will take place in the fourth quarter of this year. Concrete date will be announced to the public in advance. The central depositories shall set the date of the asset transfer in cooperation with the European Central Bank, that provides securities settlement services to both depositories via the Target 2-Securites platform. The entire process of NCDCP clients’ assets transfer is supervised by the National Bank of Slovakia, and provisions of the Act on Securities and Investment Services, as well as provisions of the Regulation of the European Union on central depositories apply to the transfer.
Questions from clients
The clients may find further information with respect to assets migration in the Frequently Asked Questions published by both depositories on their web sites. FAQ can be found at:
CDCP: Assets transfer of NCDCP clients – CENTRÁLNY DEPOZITÁR CENNÝCH PAPIEROV SR, a.s.
NCDCP: Assets transfer of NCDCP clients – Národný centrálny depozitár cenných papierov, a. s.
Centrálny depozitár cenných papierov SR, a.s. in its activity continuously took up activities of preceding Stredisko cenných papierov SR, a.s. (the Securities Centre of the Slovak Republic, jsc.), registered in the Business Register of SR at the end of 1992. Effective from 16 March 2006 the company Burza cenných papierov v Bratislave, a.s. (the Bratislava Stock Exchange, jsc) has become a 100-percent shareholder of the central depository.
Národný centrálny depozitár cenných papierov, a. s. (The National Central Securities Depository, joint-stock company) as a legal entity, was established in May 2014 and registered in the Business Register of the Slovak Republic on 1 November 2014. The founder and sole shareholder is Slovenská záručná a rozvojová banka, a.s.(the Slovak Guarantee and Development Bank).