Eastern Europe Builds Trade Infrastructure

Terry Flanagan

Poland expands DMA and clearing capabilities.

Eastern European trading companies and exchanges are building out their infrastructures to accommodate new classes of automated trading apps.

ARQA Technologies, for example, has developed the trading interface enabling Warsaw Stock Exchange market participants to get access to the WSE trading system for sending transactions and receiving market data about the trading process, Yury Voronov, CEO of ARQA Technologies, told Markets Media.

ARQA Technologies is a leading Russian software company in creating and developing comprehensive solutions and technologies for end-to-end automation of banks, asset management and investment companies operations at financial markets, Voronov said.

“The key product among the company’s products and services is QUIK DMA system, which provides access to all the Russian and more than 20 international exchanges trading platforms via the Internet,” said Voronov.”It’s a leader among front-office software solutions in Russia and Ukraine.”

This line consists of front-office QUIK, middle-office midQORT and back-office backQORT. Also, the company provides outsourcing, hosting and backup services of QUIK program complex and its modules based on its own technical centers located in Moscow, Novosibirsk and Kyiv.

The clientele of the company includes more than 270 financial organizations from Russia, Ukraine, Kazakhstan, Great Britain and Estonia. Among them are the Russian “daughters” of international banks and the upper Russian buy-side and sell-side firms.

Separately, Poland’s National Depository for Securities (KDPW) is transferring its clearing functions for transactions executed in the regulated market and alternative trading system, as well as the management of clearing liquidity guarantee system to KDPW_CCP.

The clearing of transactions will be carried out by KDPW_CCP, while the settlement of these transactions (transfers between depository accounts) will be performed by KDPW.

The establishment of KDPW_CCP is one of the key projects crucial to the development of the Polish market under the KDPW Strategy 2010-2013. KDPW_CCP will operate as a clearing house in the Polish market using the central counterparty (or CCP) model.

In order to eliminate the risk of uncleared transactions, the clearing house will use a state-of-the art recently implemented risk management system based on the globally recognized SPAN methodology. KDPW_CCP also has its own capital of PLN 100 million, which it can use to guarantee clearing liquidity, if necessary.

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