KELER is adapting to CSDR requirements to be compliant with relevant European-level regulations. By Dario Mariotto, Relationship Manager, GSS Hungary
Achieving CSDR authorisation is an important milestone for KELER. Therefore, KELER has set up a project in close cooperation with the Central Bank of Hungary, while at the same time also preparing the necessary documentation package.
KELER needs to be licensed as a credit institution and as a central securities depository under CSDR. The final authorisation deadlines are yet to be set and will depend on the completion of the Regulatory Technical Standards (RTSs)/ Implementing Technical Standards (ITSs). Based on the latest available information, KELER will submit its application by August which should grant it an authorisation no later than Q1 2018.
KELER also established a User Committee in order to create a forum for issuers and participants of its Securities Settlement System and to ensure compliance with the principles of the CSDR. The first meeting was held on 13 December 2016. KELER invited different industry associations to join the forum, such as the Association of Hungarian Investment Fund and Asset Management Companies (‘BAMOSZ’), the Association of Investment Service Providers (‘BSZSZ’), the Hungarian Banking Association, the Budapest Stock Exchange, the Investor Protection Fund (BEVA), the Hungarian Independent Transmission Operator Company, MAVIR and KELER CCP.
Having identified the weak spots following the latest financial crisis, European regulators have been keen on covering the complete chain of financial services on the capital market with regional-level rules and regulations. These rules and regulations such as MIFID (the regulation of trading platforms) and EMIR (the regulation on financial derivatives incorporating a reporting obligation for clearing houses and central counterparties) have been completed by the CSDR, which sets forth provisions on the operation on EU depositories.
Dario Mariotto
Relationship Manager GSS Hungary