Dear Clients,
Herewith we provide you with up-to-date information on the testing and application of the penalty mechanism.
KELER - in consultation with the Central Bank of Hungary, as the competent national authority - will start applying the CSDR cash penalties after the settlement fails in its own securities settlement system from May 2, 2022.
For the testing and the actual application of the penalties, we announce the following amended schedule regarding the penalty mechanism operated by KELER:For the testing and the actual application of the fines, we announce the following amended schedule regarding the fines to be calculated by KELER:
1. Planned start of MAT tests: March 1, 2022
If features and reports related to the penalty mechanism become available earlier in the test environment, we will send you separate information. We are primarily working to make daily reports available.
2. Dry-run is scheduled to begin on April 1, 2022.
During this period, penalty is calculated and reported in the production environment, however, they are not yet collected and distributed, i.e. PFOD PAIR transactions will not be generated after KELER penalties in the month following the the relevant month.
(If penalty calculations and reports become available earlier in the production environment, we will send you separate information.)
3. Scheduled date of go-live: 2 May, 2022
KELER will collect and distribute penalties in June 2022 after the failed settlement instructions with penalty detection date of May 2, 2022 or greater date.
At the same time, we would like to inform you that our foreign custodians (KDPW and SIX SIS) will report penalties to KELER from 1 February 2022 on the basis of their own calculations or reports from other CSDs covered by the CSDR.
Therefore, KELER will report the penalties due in the systems of the relevant foreign central securities depositories due to the so-called crossborder settlement orders to KELER and collect and distribute the penalties.
If you have any questions or comments, please contact us at
Sincerely,
KELER Ltd.