History

KELER's history

1993

KELER founded Tuesday, 22 October 1993

With the establishment of Központi Elszámolóház és Értéktár Rt. [Central Clearing House and Depository Co.; KELER], another significant institution is added to the securities and capital market in Hungary. It was necessary to set up the company because the Hungarian securities market had outgrown the previous clearing system. A new organisation, KELER, as a key institution of the Hungarian securities market, is tasked with providing depository services as well as ensuring the appropriate background infrastructure.

1994

KELER establishes and launches a limited payments system.

Also, clearing activity for the futures market of the Budapest Stock Exchange begins after taking over the entire clearing system from the Budapest Commodities Exchange.

1995

KELER increases volumes, continuously develops services, and opens up to the international securities markets

After the foundation, KELER first focused on implementing new services, and the year 1995 is characterised by the expansion of developed services and a surge by an order of magnitude in the volume managed by KELER. For example, the stock exchange accounts of Budapest Stock Exchange members are also transferred to KELER this year. Additionally, clearing services for OTC government securities market become the highest-volume clearing service for KELER as well. The first cross-border transaction is executed this year.

1996

KELER becomes an ISIN numbering agency, extends its international relations, develops its services

KELER initiates an account with international clearing house CEDEL Bank S.A. having been selected by CEDEL as its depository in Hungary. As a result, the cooperation becomes bilateral. The Association of National Numbering Agencies (ANNA) admits KELER as a member, assigning the status of central numbering organisation (ISIN) in Hungary. Also, services to keep the Share Register commence.

1997

KELER introduces multiple-times-a-day clearing of OTC securities market transactions and takes out a professional liability insurance.

As depository, KELER plays a role in MATÁV Rt.’s IPO to the New York Stock Exchange. KELER introduces unique ISIN numbers to identify the individual securities series.

KELER takes out a liability insurance to improve the security of the capital market.

1998

The first dematerialised securities, international role

The first dematerialised securities in Hungary emerge with the transformation of KELER stocks.

Involving KELER as well as several stock markets from Europe, Asia, and Africa,  the Association of Future Markets (AFM) is established. OeKB (Oesterreichische Kontrollbank), the central clearing house in Austria, initiates a securities account with KELER.

1999

KELER joins the VIBER system, expands the DVP-based settlement

As one of most significant developments of the year, real-time gross clearing system VIBER goes online on 6 September. By KELER joining the system, the immediate settlement of the securities transactions against money (DVP) is enabled.

KELER expands the same-day DVP-based settlement system for all other stock exchange and OTC securities that can be received by the KID besides the government securities.

2000

Another step in the custody of foreign securities and the first dematerialised securities on the Budapest Stock Exchange

Following a development work of nearly a year, KELER successfully launches automated cross-border clearing system in December.

Also, the first transformation of a stock listed on the Budapest Stock Exchange into dematerialised form occurs at the end of 2000.

2001

T+2 settlement cycle in the case of bonds, developed IT infrastructure

Renowned US journal e-Business and Application Integration Journal names KELER’s system built on IBM MQSeries messaging interface as Best Application Integration Solution 2001.

In 2001, KELER now settles corporate bonds and other credit securities in T+2-day cycle in addition to government securities.

2002

T+3 settlement cycle in the case of shares, improvement of the system security

On 18 November 2002, KELER introduces T+3 days clearing cycle for stock exchange transaction of shares.

At the same time with the launch of the T+3 system, revaluation of collateral at current market prices is offered as a new service.

2003

Several significant service developments, expansion of the international relations

KELER establishes a settlement relationship within the framework of a joint project with the Budapest Stock Exchange for the settlement of the transactions made on the Deutsche Börse. In this context, KELER establishes a direct account connection with Clearstream Banking Frankfurt settling the transactions as a central securities depository and with Citibank Frankfurt, the custody and clearing service provider providing clearing and settlement services as an intermediary for KELER.

In the course of 2003, the foreign exchange-based settlement of certain derivative products is introduced as a new service.

2004

Specialised credit institution licence, further steps in security, another international cooperation

KELER operates as a specialised credit institution as of the beginning of the year. As an additional support for the secure operation, at the end of 2004, KELER’s back-office centre goes online with the help of which the continuous availability is provided even in the case of a BCP event.

The company also boasts international achievements:

KDPW, Poland’s central clearing house and depository, initiates a securities account with KELER.

2005

IT and service development, market harmonisation, support of the merger of stock exchanges

In September, the integration agreement established by and between the Budapest Stock Exchange and the Budapest Commodities Exchange is approved by the respective governing bodies.

The integration of the two markets is implemented via assignment and transfer of activities. KELER plays a significant role in the implementation as the collateral systems related to the clearing house guarantees have to be standardised in addition to clearing methodology workflows. As another important factor in 2005, it becomes possible for customers to access KELER system externally from their back-office systems directly and automatically. As a result, a specified and constantly expanded scope of KELER services are now available in “straight-through processing” (STP) mode. Also in 2005, KELER introduces “hold/release” services in gross clearing at the OTC market, at the same establishing the conditions for standardised processing of FoP (Free of Payment) securities transfers and DVP (Delivery Versus Payment) clearing.

2006

Optimisation and the development of cross-border services

Among KELER’s development in 2006, field length extension stands out. This was necessary because of a significant increase in the quantity and nominal value of securities issued.

Major progress is made in the efficiency of cross-border services by automation of XETRA settlements on the one hand and of processing foreign corporate events, on the other hand.

2007

Risk management and the Code of Conduct

One of this year’s most important developments is the expansion of real-time risk management to the prompt market of the Budapest Stock Exchange.

The task forces of the Industry Associations finalise the document establishing the practical principles of the access and interoperability section of the Code of Conduct, which is accepted and signed by KELER.

2008

KELER CCP is established, the settlement and clearing of additional capital market instruments

In compliance with the statutory requirements, for the mitigation of the capital market risks

KELER KSZF, the other affiliate of KELER Group, is established by 30 June, starting operation on 1 January 2009.

At the prompt market of the Budapest Stock Exchange, trading with investment and turbo certificates begins in February 2008. The preparation for the settlement and clearing of these meant new tasks for KELER as well.

2009

KELER CCP starts its operation, introduction of the new eISIN system

Central guarantee provision activity is fulfilled by “KELER KSZF Központi Szerződő Fél Kft.” [KELER KSZF Central Contracting Party LLC], under majority ownership by KELER Zrt. and minority control of the Budapest Stock Exchange and the National Bank of Hungary as of 1 January 2009.

Parallel with the separation of the central counterparty and the depository functions, the separation of the settlement and clearing system is realised.

In the course of 2009, upgrading and restructuring of the IT infrastructure is an ongoing process in order to operate a system that supports business processes with an IT system that is operable easier, has a higher degree of availability than the existing system, and is scalable and cost-efficient. Notable among the events of 2009 is a KELER development which allows online access to the ISIN numbering service.

KELER is the host to the professional conference held every two years for the CSDs — this year’s conference is the most successful CSD conference so far.

2010

Settlements for the first transactions at the Budapest Energy Exchange commences with support from KELER Group.

It becomes possible as of this year for KELER to provide clearing services for customers that are active at the energy market. KELER KSZF acquires general clearing membership in the German clearing house ECC (European Commodity Clearing AG), allowing players at the Hungarian and international electric energy market to access the Hungarian energy market via KELER KSZF. As another significant event for KELER Group in 2010, KSZF begins clearing services for the natural gas market related to the NFKP [Daily Natural Gas and Capacity Trade Market] platform.

2011

As of the spring, KELER KSZF operates as a private joint stock company.

Comprised of KELER KSZF and KELER Zrt., KELER Group’s main objective is to enter international markets i https://www.keler.hu/Szolgáltatások/Kibocsátói%20szolgáltatások/Társasági%20események/Közgyűlés-szervezése/n addition to servicing Hungarian customers.

With the clearing of HUPX PhF additional energy market products appear on the range of services of KELER CCP.

2012

Entering the gas market

An announcement is made this year that KELER Group provides the settlement services for the natural gas exchange CEEGEX, to be launched on 2 January 2013.

To go online early 2013, the gas exchange increases transparency, and the trading provides information on market prices, which may impact them favourably not just in stock exchange transactions but also in OTC deals. 

2013

Xetra, the new trading system of the Budapest Stock Exchange, is launched at 9. a.m., Friday, 6 December for all market players.

The clearing services related to Xetra are provided by KELER KSZF, so the launch of the platform is a significant milestone for the company. SIX Securities Services (SIX SIS) is contracted as new sub-depository for KELER, and this strategic partnership contributes to meeting the objectives set forth by KELER Group. The integrated transaction control (“order routing”)  and settlement system WARP (Wide Application Routing Platform) is also launched in 2013 to establish direct connection between asset management companies, distributors that sell and redeem investment notes, the settlement management party that manages the daily secondary issue and cancellation of securities, and KELER, the entity settling and recording securities transactions. As of this year, KELER KSZF provides clearing services at the CEEGEX as well.

2014

EMIR licence, new capital market service

As a significant event in 2014, a licence unique to the Central and Eastern European region is issued for KELER KSZF by the National Bank of Hungary in a concerted decision by the relevant supervisory body of the European Union, as a result of which market players trading through the Hungarian clearing house are granted exemption from higher capital requirements. In 2014, KELER KSZF is the only clearing house having such a licence. In the summer of 2014, KELER meets all the necessary requirements and launches the reporting service EMIR for the first time in the region. KELER KSZF acquires EMIR licence.

2015

Another international market, REMIT reports

The EU’s data disclosure requirement for transactions and orders at regulated markets come into force, prescribing that all transactions at wholesale energy markets must be reported to the relevant European authorities. The obligation is extended to all transactions as of April 2016. The purpose of the regulation is to increase transparency of energy markets, and KELER devises a dedicated service. KELER also launches the reporting service REMIT in 2015. KELER KSZF establishes cooperation with the Serbian Energy Exchange SEEPEX.

2016

Expansion of the international clientele

KELER KSZF enters new markets in 2016, becoming the clearing banking service provider for Belgian, Dutch, British and Irish companies trading at the energy exchanges APX and a Belpex.

KELER starts the joining preparations for the T2S (Tartget2 — Securities) system jointly with the domestic capital market players.

2017

Joining the T2S, preparation for the new Trade Reporting services

As an outstanding milestone, KELER Zrt. joins the uniform European securities settlement system (Target2 – Securities – T2S).

The T2S platform is established by the European Central Bank (ECB) in order to align the various settlement systems in Europe and standardise securities transactions, giving them a higher degree of efficiency and security. In the same year, KELER meets the conditions required for the transparency report (APA) set forth in the regulations MiFID 2 and MiFIR. Additionally, KELER meets the requirements of transactional reporting to be disclosed to the relevant authorities as registered ARM (Approved Reporting Mechanism) service provider.

2018

CSDR, expanding Trade Reporting services

KELER starts re-licensing in accordance with CSDR (Central Securities Depositories Regulation), one of the key regulations in the aftermath of the 2008 financial crisis to regulate the operation of central depositories.

KELER launches its service related to the market support of the reporting obligations under MiFID II and MiFIR.

2019

KELER launches its Service Development Programme

On 16 May 2019 KELER launches its Service Development Programme (KSZP) whose purpose is the automated, nearly full T2S harmonisation of KELER, the improvement of the efficiency of the services provided by KELER, the statutory compliance and the compliance with the internal regulatory frameworks for promoting the business operation of KELER as well as the establishment in several stages of a modular and scalable modern IT system supporting the services of KELER.