The Central Securities Depository of the Slovak Republic, a.s. (“CDCP SR”) provides its services in a highly regulated environment that is constantly evolving to meet strategic objectives set at both the European and domestic levels. Recent examples of these requirements include the mandatory implementation of partial settlement, preparation for providing services to central banks for collateral management within the ECMS system, reporting of securities accounts to the Central Register of Accounts, and the implementation of requirements under the Digital Operational Resilience Act (DORA). The sector in which CDCP SR operates is dynamic, highly reliant on technology, and subject to its rapid development. CDCP SR exclusively serves the Slovak capital market; however, it faces competition from other, particularly international, central securities depositories in terms of securities issues registration, as well as from banks regarding the provision of financial resources for business development.
The Slovak economy, influenced by external factors collectively termed a “polycrisis,” has experienced an extraordinary rise in inflation over the past three to four years, with inflation rates reaching double digits in 2022–2023. Operating within the Slovak market, CDCP SR is affected by the country’s economic situation just as any other business entity.
In delivering its services and developing new services, CDCP SR respects the requirements of its key clients, that are its participants and major issuers. CDCP SR has met issuers’ requests for price reduction for securities issues registration and introduced fee discounts in June 2020. At the same time, CDCP SR is keen to provide services cost-effectively and to this end is implementing automation to streamline its processes. Given the need to consider the aforementioned factors, CDCP SR has decided to revise its Scale of Fees and restructure the fees for selected services, particularly those related to the registration of book-entry securities issues and maintenance of all types of accounts. A draft of the revised Scale of Fees will be submitted to the CDCP User Committee members for discussion in the first quarter of 2025. The expected effective date of the CDCP’s Scale of Fees in new structure is 1 January 2026.
Author: Dagmar Kopuncová
