KSDP to further enhance the Hungarian market
The KELER Service Development Programme (KSDP) was officially closed at the meeting of the Board of Directors of KELER on 25 January, as recommended by the management and with the support of Ernst & Young Tanácsadó Kft. as the quality assurance partner of the program.
The KSDP was launched in 2018 with the goal of creating an efficient and modern IT infrastructure, in line with European legislation and industry standards. The objective was achieved with the launch of the settlement system in December 2021.
The KSDP included the implementation of services required to comply with the provisions of the CSDR relevant to central securities depositories and the related EU Settlement Discipline Regulation (SDR). An interface was established between KELER and the European Central Bank's Target-2-Securities system for the fully automated settlement of transactions in securities issued in Hungary and settled in euros. In addition, the Hungarian settlement practice was brought in line with European standards, including the unified communication of messages based on ISO standards.
All the above helps to ensure that domestic securities transactions, like those settled in developed European markets, are settled in a standardized manner, using industry-standard messages, with a common framework and functionality to increase settlement efficiency.
The program also introduced the penalty mechanism to improve settlement discipline and the efficiency and security of the settlement system. Some of the back-office activities, such as the preparation of client reports, the fee calculation process, and mandatory reports, have also been renewed, which will help to increase billing discipline, efficiency, and security of the billing system.
As an active market participant in the KSDP, UniCredit Hungary welcomes the developments implemented under the program. These improvements may further enhance the Hungarian market and help it to operate in line with European standards.
