Over the days of 12 – 14 November 2021 Centrálny depozitár cenných papierov SR, a.s. (CDCP) in cooperation with Národný centrálny depozitár cenných papierov, a.s. (NCDCP) executed migration of the entire assets of NCDCP clients to the register of CDCP. Thus, starting from 15 November, CDCP provides the services of central depository to all clients whose assets were transferred from NCDCP to the register of CDCP. Thereby the procedure of creation of the single central depository, providing services on the Slovak capital market, was finalised.
Migration of assets was executed in compliance with applicable legislation and the Agreement on transfer of NCDCP clients´ assets executed by CDCP and NCDCP on 23 July 2021 in connection with the intention of NCDCP to waive the licence for operations of central depository, announced by both central depositories in July this year. „Both depositories had been intensively working on preparation for migration of assets of clients for several months prior to its execution. The aim was to achieve migration without any issues and that would allow CDCP to start servicing the clients of NCDCP from the very first day after migration of assets,“ explains Mr. Martin Wiedermann, the Managing Director and the Chairman of the Board of Directors of CDCP.
For NCDCP the migration of assets of all clients also means termination of its participation in the pan-European securities settlement system Target 2-Securities (T2S) operated by the European Central Bank (ECB). In order to ensure the smooth migration of assets and termination of NCDCP’s participation in T2S, both depositories performed two rounds of migration testing. „NCDCP met all requirements of the ECB related to termination of its participation in T2S; this was confirmed by the ECB by approving the date of NCDCP’s exit from T2S,“ details Mr. Ľubor Jenis, the Managing Director of NCDCP.
Upon migration of assets of clients of NCDCP and in compliance with concluded agreement, CDCP shall provide its services also to the clients of NCDCP based on the licence for operation of the central depository and under conditions laid down by CDCP regulations. The detailed information on provision of services related to assets transferred from NCDCP was published by CDCP on its web site.
Creation of the single central depository serving the entire Slovak capital market shall translate primarily into the increased efficiency of the market infrastructure and simplification of procedures for all participants of the capital market that had previously used the services of both depositories.
CDCP, as the single central depository, intends to provide services to participants of the capital market effectively and on a high professional level. „CDCP makes preparation for further implementation of digitalisation of services to additional groups of clients and is working towards improved efficiency of internal procedures. This shall enable CDCP to create a better position for potential future reduction of fees and provision of services based on advanced technological level,“ concludes Mr. Wiedermann.
