Hungary: Update on KELER’s system replacement

UniCredit Bank Hungary Zrt.
Summary: 
The go-live date of KELER’s new system has been further delayed from 3 October to 21 November 2016. This decision came after KELER's meeting today with the members of the Beta Test Working Group.
Tue, 06/09/2016

KELER, the Hungarian CSD held a meeting for the members of the Beta Test Working Group and informed them about the results of the market acceptance test (MAT):

  • approximately 50% of the system problems are related to statements: process of statement generation is unstable, statements contain errors, BaNCS is yet unable generate certain types of statements;
  • majority of the remaining 50% of system problems are related to transaction settlements mainly with repos, multinet settlements (the clearing process itself), corporate action management and blocking;
  • KELER does not plan on implementing BaNCS without the support and agreement of market participants

Prior to the Beta Test Working Group meeting, KELER’s Management had already been advised regarding the “no-go proposal”.

KELER’s Board is expected to meet tomorrow, on 7 September, where an official decision will be made on the BaNCS go-live date.

According to the proposal, the current implementation date of 3 October would be postponed to 21 November 2016.

KELER will grant a new market acceptance test period for market participants prior to the start of the code freeze; the detailed roadmap is expected to be published by KELER this week.

According to KELER, the delay of the new system enrolment will not impact the T2S accession of KELER. However, KELER does have a BCP solution if BaNCS were not go live before 6 February 2017, the details of which are expected to be shared during September.

Further updates on KELER’s system replacement will be provided as soon as a decision is announced by KELER’s Board.

Impact on investors: KELER’s new system BaNCS is expected to go live on 21 November instead of 3 October 2016.