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Poland

On January 1 1998, new regulations of the National Securities Depository of KDPW (Krajowy Depozyt Papierow Wartosciowych) entered into force. These new regulations became necessary due to the new Public Trading and Securities Act, published on October 3 1997 and which entered into force at the beginning of the year (see International Financial Law Review, May 1998 page 58). The regulations of the National Securities Depository describe the basic conditions of the deposit and clearing procedures in the field of public securities trading.

In its first part (section 1 to 7), the regulations contain definitions of terms used in the regulations and identify the regulations as an integral part of any contractual agreement between the National Securities Depository and the Stock Exchanges involving the use of KDPW for clearing purposes.

The second part (section 8 to 31) deals with the membership requirements of the National Securities Depository. The membership can be obtained through a regular membership agreement (only certain counterparties are eligible) or, under certain circumstances, in a special direct or indirect agreement (section 12).

The third part (section 32 to 80) contains provisions on the depository system, describing the proceedings and its supervision. Sections 45 to 54 deal with the clearing procedure; sections 55 to 80 describe the guarantee system which ensures that clearing transactions are carried out in the case of insolvency of one of the counterparties. Parts six (section 81 to 84) and seven (section 86) deal with various types of securities transactions (except clearing procedures, dealt with in part three) and with the issue of certificates of deposit. The provisions concerning transaction fees can be found in part eight and in the annex.

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