Legal Environment

The following key regulations govern the activity and operation of KELER

The CSDR (Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012) determining the operation of KELER Central Depository Ltd. (hereinafter: KELER Ltd.) and the related regulations constitute the most important set of rules related to the operation of the central securities depositories of the EU. The purpose of the CSDR is to make the financial markets more secure, more efficient and more transparent and it also promotes the establishment of a uniformly regulated European securities market.

It should be highlighted within the framework of the Hungarian regulation that KELER Central Depository Ltd. (hereinafter: KELER Ltd.) is a central depository and special credit institution operating pursuant to Act CXX of 2001 on the Capital Market (hereinafter: Act on the Capital Market) and Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises (hereinafter: Act on Credit Institutions). KELER Zrt. undertakes its activity in line with the requirements of the above laws, related additional legislation and the applicable European Union rules, the orders, decrees of the Magyar Nemzeti Bank (hereinafter: Supervision), and the regulatory documents of KELER Ltd.

Based on Supervision Order No. H-EN-III-613/2020 of 16 December 2020, KELER has been granted the license under the EU regulation determining the operation of central securities depositories (CSDR) and now it can offer its clients its efficient and secure services supporting the securities market as a central securities depository operating under unified European regulations.

The legal entities that

  • are entitled to use the service concerned in line with regulatory provisions,
  • meet the requirements stated in the regulations of KELER Ltd.,
  • agree to meet the reporting obligations determined by KELER Ltd.,
  • agree to be bound by the regulations of KELER Ltd., and
  • comply with the material, technical requirements determined by KELER Ltd. for the use of the service

can become clients (hereinafter: Client) of KELER Ltd. (for example investment firms, credit institutions, commodity exchange service providers, investment fund managers, issuers of securities, exchange, the Hungarian State, the National Deposit Insurance Fund and the Investor Protection Fund).

As part of the central securities depository activity, KELER Ltd. as central securities depository issues securities codes (ISINs) in line with the Act on the Capital Market, MNB Order 20/2014. (VI.3.) and Supervision Order No. H-EN-III-613/2020.

In line with the Act on the Capital Market and Government Decree 284/2001 (XII.26.), KELER Ltd. provides full-scale services related to dematerialized securities. For dematerialized securities KELER Ltd. maintains central securities accounts and the securities accounts in line with the provisions of the Act on the Capital Market.

The Depository of KELER Ltd. is responsible for the physical safekeeping, custody of the securities deposited in the Depository and provides the related services stated in the General Business Rules.

With respect to the legal entities making use of the services of its Client, KELER Ltd. acts as sub custodian of the physical securities.

Based on the cooperation agreement concluded with KELER CCP Central Counterparty Ltd., KELER Ltd. cooperates in the settlement of guaranteed market transactions.

Since 1 January 2004, KELER Ltd. has been operating as a special credit institution, therefore it is entitled to undertake financial services activities in line with its license and the provisions of the CSDR, the Act on the Capital Market and the Act on Credit Institutions.

As of 3 January 2018, KELER Ltd. is authorized to undertake Approved Publication Arrangement (APA) and Approved Reporting Mechanism (ARM) reporting activities based on Supervision Order No. H-EN-III-484/2017., the Bszt., and related Hungarian and European Union requirements.

As a company under indirect majority ownership of the state, KELER – during its operation – takes into account the provisions of Act CXXII of 2009 on the Economical Operation of Public Business Organisations (hereinafter: Act on Public Business Organisations) and – as essential system components – Act CLXVI of 2012 on the Identification, Designation and Protection of Essential Systems and Facilities (hereinafter: Act on Essential Systems), Government Decree 65/2013 (III.8.) on the Implementation of the Act on Essential Systems (hereinafter: Decree on the Implementation of the Act on Essential Systems) and the relevant sectoral legislation.

The list of major regulations applicable to KELER Ltd. can be read below. Please visit Nemzeti Jogszabálytár and EUR-Lex web sites for the text of regulations in force at any time. 

 

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Articles of Association

 

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Remuneration Policy

 

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AML Act

 

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