KELER CCP announced that in line with the draft CSDR and its Board Resolution a shortened settlement cycle will be introduced in Hungary - with effect from 6 October 2014 the current T+3 settlement cycle applicable to the Equities Section of Budapest Stock Exchange and the BETa Market to will be switched to T+2. The settlement cycle for bonds is already T+2.
The migration will be handled under the following schedule:
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securities transactions with trade date prior to or on 3 October 2014 will be settled following the T+3 settlement cycle
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securities transactions with trade date on 6 October 2014 or after will be settled following the T+2 settlement cycle
After the migration all transactions guaranteed and cleared by KELER CCP will be following the T+2 settlement cycle (Budapest Stock Exchange, BETa Market and MTS Hungary).
Additionally, KELER CCP is examining the possibility to extend its cut off time from the current 14:00 CET as a result of the shortened settlement cycle.
Impact on investors: The transactions of foreign investors that are non-clearing members of Budapest Stock Exchange are OTC transactions from settlement point of view and therefore the parties may freely agree on the settlement cycle. However, the settlement cycle of such OTC transactions normally follows the one applicable to the regulated market, which will become T+2 from 6 October 2014.