KELER Group Developments

UniCredit Bank Hungary Zrt.
Summary: 
In the second half of 2013 KELER Group progressed with its development plan, moving further with the Strategic Modernisation Program, achieving EMIR compliance and facilitating the migration to Xetra on Budapest Stock Exchange, among others. 2014 will see further developments, among which the launch of eKID and the switch to T+2.
Mon, 03/02/2014

KELER Group published its information bulletin on the developments that the Group has completed within the second half of 2013, as well as on the status of the ongoing projects and on its future plans.

Strategic Modernisation Program

As previously communicated, the objective of this program is for KELER to replace its account management system and at the same time be prepared for T2S entry (as KELER is set to join T2S in September 2016). Phase 1 of the program was completed and the BaNCS system of Tata Consulting Services was selected. Now the program is in Phase 2, the system specification and implementation phase, which is expected to be completed by the end of 2014 with the introduction of the new system. Phase 3 will involve various testing in relation to T2S prior to KELER joining the settlement platform in the third wave.

EMIR Compliance

KELER CCP submitted its application for EMIR compliant CCP license to the applicable supervisory authority, the Central Bank of Hungary, in mid-September 2013 in order for the CCP to be able to continue providing services under EMIR. The application was approved on 25 October 2013 by issuing the "Confirmation of Readiness" document. ESMA will now assess the documentation and issue the EMIR licence, for which it has 6 months following the date when the local confirmation was issued - the licence is therefore expected to be issued by the end of April 2014.  KELER's unconditional guarantee towards KELER CCP will cease to exist as of the same effective date.

Individual Segregation

The necessary system enhancements went live in July 2013 at KELER CCP in order to comply with the EMIR requirements under which the option of individual position and collateral segregation can be ensured  in relation to both derivatives and cash market clearing.

T+2

In line with EU level harmonisation efforts based on CSDR, on 6 October 2014 the Hungarian market and the KELER Group clearing system are expected to shift to the shorter settlement cycle of T+2.

KID Modernization Project

In 2011 KELER started the modernisation of the KID business communication system with the aim to create a more user friendly and better communication platform (the so called eKID), besides its technological modernisation. The client tests of the system were completed in the second half of 2013 and the new version is expected to go live as of 22 February 2014 for all users.

SWIFT Release 2013

It went live successfully on 18 November 2013.

Xetra Migration

With KELER CCP providing infrastructural support, Budapest Stock Exchange was migrated to Xetra on 6 December 2013.

Impact on investors: The developments of KELER Group reflect the infrastructural modernisation that is taking place in the Hungarian capital market, embracing local and international initiatives and requirements.