Update on market initiatives and upcoming EU regulations

UniCredit Bank Hungary Zrt.
Second HU-NSG meeting provides important information on CSDR, SRDII and KSDP
Thu, 09/07/2020

Custodian banks, issuers and the main market infrastructures were invited to participate at the second HU-NSG meeting in 2020, organized by KELER (the Hungarian CSD) and the Central Bank of Hungary (CBH) on 9 July.

During the virtual meeting, the participants were provided with the latest information on international market initiatives as well as on local developments from KELER. The latter are related to:

  • CSDR: KELER received the confirmation on completeness of its documentation from the CBH on 2 July. The Central Bank has now 6 months to decide on KELER’s CSDR licence.
  • KSDP (KELER System Development Project): The project is on track, no delays are expected. Market tests will start during December 2020, while the go live date is still expected to be 31 March 2021. KELER will host a workshop on KSDP on 30 July 2020
  • Settlement Discipline: Developments regarding the Settlement Discipline are incorporated in the KSDP developments, and will test the related functionalities within the KSDP market test. KELER will align with the international guidelines

  • SRD II: The project is on track, no delays are expected. Market tests will start in August 2020, go live date is planned for 3 September 2020. Information on RMA key exchange between KELER and intermediaries will be published shortly. KELER will organize a workshop on SRD II on 23 July 2020.

Impact on investors: KELER is expecting to receive the CSDR licence within 6 months, other projects managed by the Hungarian CSD (KSDP, Settlement discipline and SRD II) are expected to be finished by the set deadline.