KELER consults market participants on new cut-off times

UniCredit Bank Hungary Zrt.
KELER, the Hungarian CSD started consultation with market participants on market cut-off times.
Tue, 22/09/2020

Based on client feedback to the previously published KSDP Service description document and the workshop held earlier in July, KELER decided to conduct a survey regarding  the management of operating hours.

According to KSDP Service Description document KELER planned to introduce a uniform cut –off of 6:pm CET however it may cause difficulties to market participants in their end-of day realignments and liquidity management in case of DVP transactions.

The below transaction types are in scope of the new provision.:

  • OTC DVP;
  • Repo transactions;
  • Mark-up and mark down of investment funds;
  • Primary market transactions;
  • BSE fix price and auction transactions;
  • Multinet default transactions;
  • Physical delivery of derivative transactions;
  • PFOD transactions

In agreement with the Central Bank of Hungary, KELER proposed the following options and asked for feedback and support of  market participants.:

  • FOP/DVP transaction cut-off at 6.00pm (originally suggested by KELER);
  • Current schedule: FOP transaction cut-off at 6.00pm and DVP cut-off at 5.30pm (currently applied);
  • Harmonized with T2S: FOP transaction cut-off at 6.00pm and DVP cut-off at 4.00pm (harmonized with T2S DVP cut-off time).

Please find the link of the original announcement here:

Impact on investors: KELER asked for the opinion of market participants on the planned changes in cut-off times. We will keep you updated on the outcome of the survey as information becomes available.