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: https://english.keler.hu/kelernews/?id=1000107
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.