New participants at CDCP

Centrálny depozitár cenných papierov SR, a.s. (CDCP) admitted three new foreign participants to its securities settlement system. The Austrian Erste Group Bank AG and international central securities depositories Euroclear Bank SA/NV based in Belgium and Clearstream Banking S.A. based in Luxemburg have been added to the list of participants since the beginning of this year.

Granting the access to new participants was conditioned by demonstrating compliance with required participation criteria pursuant to the Rules of Operation of CDCP. Today CDCP has a total number of 25 participants.

„Admission of new participants to the securities settlement system shows that CDCP is a credible and stable institution accepted also by foreign entities,“ stated Mr Martin Wiedermann – the Managing Director and Chairman of the Board of Directors of CDCP.

In case of international CSDs (ICSDs), along with granting access, CDCP established a standard link according to Regulation (EU) No 909/2014 (Regulation). Therefore, the ICSDs had to meet some additional requirements applicable to the CSD link pursuant to Regulation. Before granting the access to both ICSDs, CDCP assessed all possible risks resulting from the link, amongst other information confidentiality in connection with operation of the link, existence of functional operational risk management system, business continuity or information security. CDCP conducts similar risk assessment also in case of other entities requesting access to its securities settlement system. Moreover, relevant provisions of Regulation apply to account reconciliation processes in case of link arrangements. „It is guaranteed that the links satisfy European standards as complex requirements relevant to the creation of the link had to be met. This means an enhancement of the current level of security for foreign owners as regards holding of securities issued by the Slovak issuers,“ added Ms Dagmar Kopuncová – the Commercial Director of CDCP.