KELER, the Hungarian CSD, has announced its plans to comply with AMI-SeCo Collateral Management Harmonization (CMH) standards. The CMH standards were developed by the AMI-SeCo Task Force (Advisory Group on Market Infrastructures for Securities and Collateral) within the European Central Bank (ECB). The aim of the initiative is to set harmonized principles for collateral management and depositary services. The introduction of these standards is necessary to ensure effective cooperation between the members of the depositary chain.
Out of the 15 standards for corporate events, the first 14 and additional 4 billing standards must be introduced by KELER. Compliance needs to be ensured by November 2023 with the only exception of the first of the billing standards, for which the deadline is November 2025. KELER decided on a two-phase introduction (2023 and 2024) for corporate events as follows:
1. phase (expected in November 2023)
- extension of corporate event notification services to non-equity securities (this function has already been established in the CAPS system for listed shares and was introduced in September 2020)
- handling dematerialization processes as standard corporate events
- ensuring that events are booked and reported
2. phase (expected by the end of 2024)
- processing investor instructions for election events
Further information on the implementation plan is available at in the press release published by KELER at the following link: https://english.keler.hu/kelernews/?id=1007575
Impact on investors: With the implementation of the AMI-SeCo Collateral Management Harmonization (CMH) standards, KELER’s corporate action service is expected to be further extended and enhanced.