KELER, the Hungarian CSD has announced that the go-live date of the SDR penalty mechanism has been rescheduled and that they will start applying CSDR cash penalties for settlement fails in its securities settlement system from May 2, 2022. The decision has been made in consultation with the Central Bank of Hungary.
The amended schedule of testing and application of penalties is as follows:
1. Market Acceptance Tests (MAT) for KELER participants will start on March 1, 2022.
2. Dry-run testing is scheduled to begin on April 1, 2022.
During this period, penalties are calculated and reported in the production environment, but not yet collected or distributed.
3. Scheduled date of go-live: May 2, 2022.
In June 2022, KELER will start collecting and distributing penalties for failed settlement instructions submitted to its system from May 2, 2022.
Impact on investors: The Introduction of the penalty mechanism has been postponed to May 2, 2022. KELER will start collecting and allocating penalties from June 2022.