In May 2015 the Hungarian CSD, KELER, published the document "KELER Services in a T2S Environment", a revised version of which has just been released in July. Based on the first document, a summary description of the KELER services in T2S environment was published in our GSS Newsletter in July 2015. Compared to the May edition, the following main areas have been further elaborated in the revised document:
- Details of the partial entry model, especially with respect to place of matching and place of settlement, depending on the type of parties (ICP, ICP with segregated securities account at T2S, DCP) have been included, namely:
- the following additional information was provided by KELER: "If both settlement instructions are received by KELER, matching happens locally, but if at least one side of the transaction is instructed directly in T2S by a KELER participant, the place of matching will be T2S"
- the process flows for each settlement scenario in line with the various settlement principles have been added to the document
- The description of the matching criteria has been fine-tuned and the new tolerance limit has been added. The tolerance limit will be harmonised with the T2S standards from the T2S go-live date, and therefore regardless of the place of matching or the place of settlement (domestic or T2S) the same principles will apply. Thus, from the T2S go-live date the currently applicable limit of HUF 5,000 will no longer be applicable and in case of difference in the settlement amount, in order to determine if the difference is within the tolerance, the buyer's amount will prevail, however the transaction will settle with the seller's amount.
- The description of “Standard Delay Period” and “Before Cut-off Period” with respect to allegement messages have been added, both periods are differentiated by KELER in line with T2S.
- In the section "Status Management" KELER now describes further how the process will differ as a consequence of the partial entry model, in case the place of matching is within KELER as compared to when it is within T2S. In the former case KELER will continue providing real-time information about the status of the instructions.
- For DWP/RWP transactions, the method under which these types of instructions can be sent was included.
- The principal rules for linking have been added to the section "Linked Instructions". Among others things, these rules include the use of the various fields for linking, the number of instructions that can be linked and for which accounts and how the linkages can be applied.
- Further elaboration on the principles of the various settlement restrictions and transaction management (market claims and transformation) has been included.
You may find the revised version of the entire document "KELER Services in a T2S Environment" at
http://www.keler.hu/keler/keler_angol.news.page?nodeid=2808
Impact on investors: Once KELER starts live operation in T2S on 12 September 2016, the services described in the above document will be available to KELER's direct members; however, some of them may have impact on the clients of UniCredit Hungary, about which our clients will be advised in due course, as soon as all open questions have been clarified.