Summary: KELER announcement on the delay of the penalty testing period
With reference to our Newsflash of 6 January 2022, we would like to inform our clients, that KELER, the Hungarian CSD has published new information on the testing schedule of the CSDR penalty regime. According to the announcement the mandatory market tests (MAT) for KELER participants will be slightly delayed, with the first day of the testing moving from 17 January 2022 to 19 January 2022. Duration of the testing period will remain unchanged and will last until 31 January 2022.
This testing period will initially only cover the identification of failed settlements and the verification of the daily penalty reports. At a later stage, the CSD will inform market participants about the possible testing window for the monthly reports and PAIR PFOD transactions as well.
According to plans, dry run test with the CSD will be possible as of 24 January 2022 for its participants. Transactions subject to penalties will be reported in the period up to February 1, however, fines will not be calculated, collected or allocated during this period.
Impact on investors: Market tests of penalty regime will start on 19 January 2022. The penalty mechanism will be implemented as of 1 February 2022 on the Hungarian market, KELER requires market tests as a preparatory step for implementation.