KELER is on its way to becoming CSDR compliant. By Beáta Szőnyi, Senior Relationship Manager, GSS Hungary
The Hungarian CSD KELER published new information on the CSD Regulation (CSDR) and presented a timetable on how it plans to receive the necessary authorisation to be CSDR compliant.
Currently the regulatory technical standards (RTS) and the implementing technical standards (ITS) are still being finalised and accordingly the authorisation deadlines are not yet final as they should be within six months after the publication of the final RTS/ITS. According to KELER, it plans to submit its application to the Central Bank of Hungary (the local supervisory authority) by August 2017, so that the necessary authorisation would be granted to KELER in Q1 2018. KELER holds a license as a special credit institution under the Hungarian legislation, thus it will need to be authorised as a central securities depository as well as a credit institution in line with CSDR.
KELER has also started a project with the aim to become CSDR compliant and within the framework of this project, together with CBH, KELER is examining the impacts of CSDR. Besides the above mentioned EU level depository authorisation, these are, among others, the key measures of CSDR - mandatory dematerialisation, introduction of Intended Settlement Date, mandatory buy-ins, penalties for late settlement, uniform rules on the provision of services offered by central securities depositories, uniform prudential rules to ensure the solvency of depositories and the mandatory creation of User Committees.
Regarding the latter, in early December 2016 KELER already set up a User Committee comprising of representatives of various industry associations. Additionally, the RTS governing mandatory buy-in and late settlement sanctions is expected to be finalised by February 2017, at which time KELER will provide further information and details to the market participants.
Beáta Szőnyi
Senior Relationship Manager
GSS Hungary
beata.szonyi@unicreditgroup.hu