Dear Clients,
Regulation (EU) No. 909/2014 of the European Parliament and of the Council (CSDR) on CSDs for CSDs shall, inter alia, makes it mandatory for the securities settlement system they operate, to have procedures which:
- facilitate the settlement of transactions in financial instruments at the scheduled dates,
- make it possible to monitor cases where transactions in financial instruments fail to be settled,
- provide the competent authority and the relevant authorities with data on the number and details of failed payments,
- facilitate the settlement of transactions in financial instruments that are not settled at the scheduled settlement date,
- introduce a sanction mechanism that is sufficiently dissuasive for participants that cause a failure to settle.
Hungarian market was formerly informed, that KELER decided to renew and significantly transform its current securities settlement infrastructure as part of its Service Development Program (KSDP, Program). Compliance with CSDR and T2S requirements are the priorities of the Program, however compliance with the requirements set out in the SDR technical standards will be included as well.
In the course of compiling the objectives of the Program and planning the roadmap, KELER developed several scenarios, for both the Program and SDR developments, and it became evident that the KSDP and SDR developments shall go hand in hand.
As a result, since the go live date of the KSDP developments – that include the SDR compliance related developments - is 31 March 2021 at the latest, KELER will be SDR compliant only from the KSDP Program go live date.
KELER is in continuous consultation with the Hungarian capital market supervisory authority, the Central Bank of Hungary, in order to properly manage the separation of legal and technical compliance dates of SDR.
Sincerely,
KELER Ltd.
1Regulation (EU) No. 909/2014 of the European Parliament and of the Council of 23 July 2014 on the improvement of securities settlement in the European Union and on CSDs and Directives 98/26 / EC and 2014/65 / EU and 236 Amending Regulation (EU) No.