New web based application CAPS will serve as a “Golden Source” for listed shares
KELER, the Hungarian CSD (Central Securities Depository), as the first intermediary for Hungarian listed shares, will provide services related to shareholder identification, transmission of general meeting notifications, confirmation of entitlement to participate in the general meeting and transmission of information on corporate events. The services will be carried out through a web-based application called CAPS, which will be available for KELER direct clients as well as issuers. CAPS will serve as a “Golden Source” for listed shares, as issuers are obliged to upload to CAPS all relevant information for the corporate actions in scope. Issuers may use templates to upload information, custodians will also have access to view functions, the file export/import via CAPS and SWIFT communication will be done exclusively based on ISO 20022 standards. Intermediaries not being direct clients of KELER will be able to communicate with KELER only via SWIFT ISO 20022.
The first HU-NSG SRDII workshop convened by KELER was held on 11 June 2020 where the demo of CAPS was presented. Participants were presented with the SRD II model to be implemented. Furthermore, high level information was provided on the communication channels and on costs related to the new services. Specifications for developments and messages carried out in the frame of SRD II are to be published by 15th of June, the market tests are going to start in August. Further HU-NSG workshops organized by KELER will follow and other meetings prepared by advocacy establishments of the market stakeholders are also foreseen.
Hungary, as an EU member country, fulfilled its obligation to transpose the Directive commonly known as "SRD II" (Shareholder Directive II, i.e. Directive 2007/36/EC) and the related Implementing Regulation (EU) 2018/1212 in July 2019. KELER confirmed compliance with SRD II by 3 September 2020, however, further challenges will have to be resolved by the issuers and custodian banks. Issuers, currently required to provide corporate event information on several official sources simultaneously, are now lobbying for a single interface as a point of disclosure in order to achieve effective information transmission. Custodian banks are already working to be comply with several other regulations (e.g. SDR, MIFID II, AML/CTF, DAC6), will have to focus on KELER’s new developments and define common market practices.