Following the latest postponement of the implementation of KELER’s (the Hungarian Central Securities Depository) new system, establishment of a BCP solution for T2S processes became necessary in the event that BaNCS is not implemented by Hungary’s T2S accession. KELER presented its updated T2S BCP solutions to the market participants last week and initiated discussions with the European Central Bank (ECB) regarding the model accepted by the local market participants.
The European Central Bank supports the T2S BCP solution presented by KELER and subsequently supports Hungary’s T2S accession with the manual operating model drafted by the Hungarian CSD.
In the forthcoming weeks, KELER will further discuss the details of this manual operating model with representatives of the Harmonisation Steering Group (HSG). However, the final decision regarding temporarily waiving the T2S requirements is expected to be taken by the end of November 2016. KELER does not see the feasibility of the manual model and the T2S migration at risk.
KELER commenced with the data migration to T2S on 03 November 2016 which is in line with the planned schedule.
According to the action plan agreed upon last Wednesday, KELER will hold two meetings for local market participants next week. The planned dates are as follows:
- Wednesday, 09 November 2016 – Market claim, transformation, buyer protection
- Thursday, 10 November 2016 – Operational and technical (service) description of the T2S BCP solution
Impact on investors: KELER presented its T2S BCP solution to ECB in the event that KELER would need to support T2S operations from the T2S entry date (06 February 2016) with its current system. ECB supports the manual operating model (BCP solution) presented by KELER. Further details on impact on investors will be available once the updated T2S service description document is published by KELER.