Information on T2S Market Testing and Roll Out of KELER’s T2S Services

UniCredit Bank Hungary Zrt.
KELER Ltd, the Hungarian CSD, announced that the rescheduled T2S community testing is expected to begin after 21 October 2016and will last until mid-December – 16 December 2016. At T2S entry date: 06 February 2016, certain services will not be supported by KELER’s new system (BaNCS) and will be introduced at a later stage. Market Claim / Transformation / Buyer Protection will be supported by KELER manually from T2S entry date.
Mon, 10/10/2016

In recent weeks, KELER has been focusing on improving the domestic functions of BaNCS with the aim of launching the new system on 21 November 2016. This had an impact on the T2S testing schedule announced earlier for the market. In accordance with the recently published information bulletin by KELER, the T2S community testing is expected to begin after 21 October 2016 and will last until mid-December – 16 December 2016.
In order to ensure successful T2S migration, KELER has already successfully taken part in the mandatory migration tests. Additionally, KELER is preparing for the T2S static data migration starting on 3 November 2016 and plans to go live with the BaNCS functionalities needed for KELER-T2S static data synchronization in November 2016.

Based on the available information and the status of testing, KELER plans on implementing the following functions only after T2S migration. Therefore, the following services will not be available within BaNCS from T2S entry date i.e. 06 February 2017:

  • Linked instructions
  • Delivery with Payment - DWP
  • Reservation
  • Earmarking
  • Market Claim (MC) / Transformation (TR) / Buyer Protection (BP) - automatic ones

MC/TR/BP management harmonization is a condition for T2S entry and therefore KELER is planning on implementing these services regardless of them being supported by BaNCS from T2S entry date. According to KELER, these functions will be supported manually by KELER from 06 February 2017 for an interim period. As communicated earlier, KELER will partially introduce the market claim and transformation services as per CASG recommendations once Hungary joins T2S. Under the prevailing regulations, KELER will offer the market claim services only for fixed income instruments from the accession date and for equities during the course of 2017 once the necessary laws are amended.

Impact on investors: Starting from the T2S entry date, KELER will not be offering certain T2S functionalities such as Linked Instructions, DWP, Reservation and Earmarking to its Direct Clients such as UniCredit Hungary. Services related to Market Claim / Transformation / Buyer Protection will be manually supported by KELER and in case of market claims, only partially for fixed income instruments.