As elaborated in our previous communication from 18 September 2013, last year KELER launched the System Modernisation Programme (SMP) with the aim of replacing its almost twenty-year-old account management system and ensuring that the new application becomes fully compliant with the T2S functionalities by September 2016. Last month KELER announced Tata Consultancy Services as the vendor chosen for that implementation after going through an extensive multistage selection process.
As a next stage, KELER called for a meeting with the key market participants, customers of KELER, to create SRFG and the establishment meeting was held on 4 October 2013, during which the following key topics were discussed:
- Detailed description of the vendor selection process, including brief introduction of the vendor and of the system TCS Bancs - Market Infrastructure Solution
- Services that will be reworked as part of the introduction of the new system (e.g. cash and safekeeping account management, corporate actions handling, securities lending, ISIN and dematerialisation services, collateral management)
- Implementation plan for the system, including client communication and testing:
- finalisation of the system specifications - by December 2013
- preparation for the client testing and preparation of the applicable rules - planed for between March 2014 and July 2014
- testing period (including client testing) and migration - starting in August 2014,
- introduction of the new system - scheduled for October 2014
- Creation of "working groups" among participants of KELER and clients of KELER in relation to the system change – with special focus on the specification, testing, preparation, regulation and migration parts of the project
With the establishment of SRPG, KELER's aim is to provide for active dialogue with its clients and hence the clients of KELER are able to deliver during the regular meetings their needs and perceptions, discuss the open questions, share their opinions on professional documents and complete related questionnaires.
In line with KELER's system implementation plan, the first phase is the specification, which is scheduled to last until the end of 2013. As part of this phase KELER will provide preliminary information about the envisaged new services by 15 October 2013. The next SRFG meeting will be held on 18 October 2013, when the perceptions and the needs of KELER's clients with respect to the new services can be discussed and the next steps formulated.
Impact on investors: In the autumn of 2016, as part of the third migration waive, KELER and the Hungarian securities market will join T2S and by that time KELER must have a new account management system that is fully compliant with the settlement platform's functionalities. With the implementation of the new account managements system KELER takes the opportunity to enhance its services and with that in mind established the SRFG to assess the market's needs for such services.
Related newsflashes: KELER to replace its Account Management System