KELER announces plans for its service development program

UniCredit Bank Hungary Zrt.
Summary: 
Hungarian CSD KELER revealed plans on how to proceed with its Strategic Modernisation Program (SMP)
Mon, 10/12/2018

As previously had been announced, KELER decided to revise and redesign its Strategic Modernisation Program and continue with new approach. On 6th December, 2018 the Hungarian CSD provided further details to the public about the project.

The most important feature of the new architecture is that the services required for business operations will be provided by functionally well-defined, autonomous, but strictly cooperative modules. The renewed program aims at the gradual replacement of the current systems and implements the project goals in milestones while also being consistent with developments already made by market participants.

The main target of the first milestone is to focus on developments required by T2S and CSDR compliance and to renew client statements. In this phase, which shall be completed by Q3 2020 in line with the effective date of CSDR Settlement Discipline requirements, the functional expansion and automation of the current T2S-connection and the harmonisation of domestic market practice according to T2S will be carried out.

The focus of the second milestone will be on the developments related to KELER’s background business procedures, the direct impact on clients will be expectedly very low.

Further to the above KELER aims to prepare additional developments as well at a later stage, the timeframe and exact scope have not been set for the time being. The most important areas are related to the Corporate Action Reform and also cover the renewal of KELER’s banking services and the development of new securities services such as linked transactions, back-to-back transactions, extension of repo transactions, etc..

KELER announces the timeline of the above mentioned developments and the detailed service description following further market consultation.

Impact on investors: KELER’s core system change advances with a new, module based approach that will be further defined after consulting the local market.