As already communicated, the Hungarian CSD, KELER, will join T2S in the fourth wave, together with the Austrian, German, Luxembourg, Slovak and Slovenian CSDs, in the weekend of 4 and 5 February 2017.
KELER will operate in T2S in a manual mode and will thus access the T2S functionalities via the T2S GUI user platform for the EUR DVP transactions as well as for the transactions with the Austrian CSD, OeKB CSD. KELER has performed the necessary market and T2S migration tests and has also successfully completed the migration of the basic data from its local system necessary for settlement in T2S and therefore both the static and the dynamic data have been synchronised with T2S.
The impact of the T2S migration on KELER’s clients (the Hungarian custodians and brokers, respectively their customers) is limited:
- settlement of Hungarian securities performed intra-CSD (i.e. transactions between two KELER participants) are not impacted
- EUR DVP transactions: KELER will send all pending as of 3 February 2017 EUR DVP instructions to T2S once the conditions for the settlement of the transactions are met, thus no action is needed from KELER’s clients or from their customers as pending instructions will not be cancelled by KELER and clients do not need to resend them to T2S after the migration on 6 February 2017
- cross-CSD transactions (applicable only to transactions with OeKB CSD): all pending instructions will be cancelled by KELER at the end of the day of 3 February 2017 and the instructions will need to be resent on 6 February following the start of T2S operations
On 3 February 2017 KELER will not be amending its deadlines and the customary cut-off times will apply:
- for RVP/DVP instructions - 17:30 CET
- for RFP/DFP instructions - 18:00 CET
In accordance with the schedule established by the European Central Bank, KELER plans to send out information on the progress of the migration as follows:
- on Friday, 3 February 2017, at 19:00 CET following the official start of the migration process
- on Saturday, 4 February 2017, at 14:00 CET following the successful migration of KELER
- on Sunday, 5 February 2017, between midnight and 5:00 CET following the reaching of the Point-of-No-Return (PoNR), i.e. when returning to the previous operational environment will not be possible anymore
- on Monday, 6 February 2017, at 5:00 CET when T2S starts the business day on Monday
During the weekend of 4 and 5 February 2017 KELER’s communications will be released when a milestone has been reached in the process and may not necessarily happen at the above specified times.
The European Central Bank will stop the migration process if, for any reasons, the technical switch will have not been completed by the PoNR. In such a case the whole fourth migration wave will be cancelled. KELER will advise its clients at latest by 5:00 CET on Sunday, 5 February 2017 if this contingency scenario has materialised.
During the migration weekend UniCredit Bank Hungary will be keeping its clients informed of the progress of the migration process on the basis of the information published / distributed by KELER.
Impact on investors: Following the planned migration of KELER to T2S through the weekend of 4-5 February 2017, the Hungarian CSD will operate in the T2S environment in manual mode and will enrich and send the instructions manually to T2S via the T2S GUI platform. Thus, SSIs for intra-CSD instructions with Hungarian securities, irrespective of whether the settlement currency is EUR or HUF, will not change. The clients of UniCredit Bank Hungary shall continue sending their instructions using the same formatting requirements, regardless whether the fourth wave migration, including that of KELER, is successful or not.