KELER – Go live of penalty mechanism dry-run

UniCredit Bank Hungary Zrt.
Summary: 
Dry run for CSDR penalty mechanism begins on 1 April 2022
Fri, 01/04/2022

KELER, the Hungarian CSD informed the market that the CSDR cash penalty mechanism and the related procedures will go live in production in dry-run mode as of 1 April 2022.

Within the dry-run mode, penalty calculation in April will occur in the production environment for the affected instructions, without the actual settlement of the calculated penalties as per normal schedule. The first business date (and penalty detection date) for which a penalty calculation will happen will be April 1, 2022, the first penalty reports will be made available on April 4, 2022.

As previously informed (here) the penalties related to February, March and April 2022 will be reported and settled with postponed schedule. KELER will provide further information on the format of the retroactive penalty reports by mid of April the earliest.

KELER reported that the majority of the errors detected during the market acceptance test could be already fixed and they go live without any critical errors that would endanger the operation. KELER will however continue to work on the fixes of the remaining known issues during the dry run period.

 

Impact on investors: Penalty dry-run period will start as of 1 April 2022 on the Hungarian market. Fines for late matching and settlement will be applied by KELER for the transitional period retrospectively for the period of February, March and April 2022.