In its recent publication, the Hungarian CSD (KELER) presented an update on its Strategic Modernisation Program and information on the possible impacts of changes to the international T2S project.
Regarding the testing and implementation schedule of its new system (BaNCS), KELER stated that the previously announced launch date of 4 July 2016 remains unchanged. KELER also announced that the beginning of beta testing was set for January 2016 and will be followed by market testing in March 2016. KELER has already prepared the draft of the Service Description document that includes the expected changes associated with the introduction of the new system (BaNCS) and Hungary’s T2S entry. This draft has been circulated among the market participants and the final version is expected to be published by 4 December 2015.
Additionally, KELER provided information about potential impacts of the decision made by the Euroclear Group members (the Belgian, Dutch and French depositories) on not joining T2S in Wave 2 as originally intended (due to disruptions in their schedules). As these are significant players, their decision to postpone will possibly have an impact on the T2S joining plans/schedules of other CSDs, including KELER.
Within the international T2S project, a working group has been set up to evaluate the effects of a possible solution. Furthermore, the impacted CSDs such as KELER have been requested to provide their views regarding this topic.
In order to establish a viewpoint, KELER consulted with the Beta Working Group (composed of local market players) on the possibility of postponing KELER’s entry to T2S from the originally planned 3rd Wave until the 4th Wave. The great majority of the Beta Working Group members agreed with KELER's proposal to change its migration schedule so that KELER can join T2S in the 4th Wave.
Within the T2S project, the CSD Steering Group is expected to make a decision on the new migration timeline at its next session on 10 December 2015 after consulting with the respective CSDs.
We will keep you informed of any further details as soon as they become available.
Impact on investors: According to the original project schedule of KELER, there were less than three months between the rollout date (4 July 2016) of its new system BaNCS and the 3rd T2S Migration Wave (12 September 2016). The possible switchover to the 4th Migration Wave could mitigate the risk of failure associated with the tight timeframe for the implementation procedures.