KELER Group issued a press release about its results and development projects that were launched or expanded last year. At KELER’s General Meeting held on 15 May 2013, KELER informed its shareholders that a profit was made in 2012, which was above expectations since the turnover of the stock exchange and the activity of the securities market decreased last year. In line with the resolution passed at the General Meeting KELER will transfer the entire profit of HUF 2.03 bn into retained earnings. The solid capital position of KELER provides an adequate basis to innovatively expand and modernise its services. Thirteen high priority development projects were launched or expanded last year. The Strategic Modernisation Programme is a significant project that aims at replacing the current account management systems of KELER and simultaneously taking into account the T2S project during the course of the next few years of development. Furthermore, the new system will open up a new window of opportunity for KELER to play a regional role as well. Additional developments were also finalised, among others, enabling the online creation of dematerialised securities in addition to increasing the standardisation and efficiency in the investment fund market with the launch of a new order routing system, called WARP (Wide Application Routing Platform).
KELER CCP’s financial report was also approved at the CCP’s General Meeting with a net loss of HUF 76.14 mn.
In line with the resolution passed at both General Meetings, KELER as a majority shareholder of KELER CCP will increase its share capital by HUF 4 bn before 1 July 2013. Thus the share capital of KELER CCP will exceed HUF 5 bn in order to comply with the provisions of the European Market Infrastructure Regulation (EMIR), which is KELER CCP’s top priority project. Simultaneously with an increase in capital, the amount of liabilities undertaken by KELER in favour of KELER CCP will be reduced to HUF 4 bn from the current 8 bn. In order to obtain the licence required to continue clearing activities, according to EMIR requirements, KELER CCP will have to submit its request to the Hungarian Financial Supervisory Authority (HFSA) within a few months. KELER CCP launched other EMIR based projects that serve both capital market harmonisation and energy market expansion. Finally, in line with EMIR requirements the General Meeting of KELER CCP established a Supervisory Board through the modification of its Articles of Association.
Related Newsflash: Newsflash Hungary - AGMs of KELER and KELER CCP
Impact on investors: With renewal and innovation, the shareholders of KELER Group fortified their commitment to the Group’s future. In the coming months KELER CCP aims at becoming an EMIR compliant CCP.