Dear Client,
The Central Depository House ( KELER Ltd.) published its revised General Business Rules that incorporate changes among others that are due to the upcoming shortened settlement cycle for the Equities Section of the Budapest Stock Exchange.
As it was earlier communicated with effective date of 6 October 2014 the migration from the current T+ 3 settlement cycle applicable in the Equities Section of the Budapest Stock Exchange and BETa Market to T+2 will take place .
With effective date of 6 October 2014, in line with the changes of the General Business Rules of KELER Ltd., the “cum date“ will be shifted from the current E-8 to E-7 for equities listed on the Budapest Stock Exchange. Consequently, E-7 will be the last day of trading when ownership rights related to the corporate event are bought and sold together with the securities. “E” is equal to the date of the corporate event and the calculation is made based on business days.
The revised General Business Rules of KELER Ltd. are still subject to approval of the supervisory authority: the Central Bank of Hungary. They will be official once the approval is obtained.
Impact on investors: Subject to the approval of the Central Bank of Hungary of KELER Ltd.‘s revised General Business Rules effective as of 6 October 2014, the “cum date” will be shifted from the current E-8 to E-7 ( “E” equals the date of the corporate event) for equities traded on the Budapest Stock Exchange, thus E-7 day will be the last day prior to corporate event when investors can still trade with securities with the entitlement rights.