Financial Settlement

During securities market clearing the purchase price on trade day is settled in line with segregation and the European market practice, with respect to all securities transactions on the second (2.) clearing day after the day the transaction is made (on T+2 where T = Transaction Day).

During settlement the financial settlement positions are formed at the segregation levels of Clearing Member own and omnibus principal, while Non-clearing Member positions are settled jointly with the Clearing Member omnibus principal positions. The place of settlement on the cash side is either KELER or in the case of credit institutions the MNB. The place of settlement for products with FX settlement is always KELER.

Clearing Members are required to make sure that the financial positions in line with segregation are available in the settlement accounts not later than 14:00 on Settlement Day (SD, where SD = Settlement Day), from these accounts KELER CCP will take them to its technical account for the entire amount. (Partial settlement is not available.) If all the transactions are settled on time (including securities delivery positions also), the clearing system of KELER CCP posts credit transactions automatically related to both securities and cash settlement.

Should any Clearing Member fail to meet financial obligations by the applicable deadline, KELER CCP declares default, cancels the defaulted transactions from multinet clearing, then settlement is completed and KELER CCP starts the default procedure.

Related to settlements, in addition to the settlement of securities and financial positions, Clearing Members are required to meet the daily margin and default fund contribution requirements.

The margin requirement is to be met until 8:50, while the normal monthly default fund contribution is to be provided until 8:50 on the second (2.) clearing day after being determined.

As part of intraday clearing KELER CCP can make a margin call on open positions during the day; this call is to be met within 15 minutes of being made.