Budapest, 22 November 2017 – Everything is set ready for the start of trading on Xtend, the Budapest Stock Exchange market designed for medium-sized companies – announced KELER CCP, provider of clearing services. Only the size of the companies will be different on Xtend; trading will be as transparent and secure on Xtend as on the traditional markets of the BSE.
Trading on Xtend, the market tailored for medium-sized companies by the Budapest Stock Exchange can be started any time as all the necessary conditions of clearing are met – stated KELER CCP Ltd., the provider of central clearing and guarantee undertaking services, a member of the KELER Group, the operator of the Xtend clearing system.
As secure and transparent
„We received all the necessary licenses and approvals, and made possible the provision of clearing services for trading on Xtend. Xtend clearing did not require additional IT developments or equipment as we will provide clearing based on the existing infrastructure” – informed Károly Mátrai, KELER CCP Ltd. Chief Executive Officer.
Károly Mátrai stressed: „The companies on Xtend will differ from the companies listed on the regulated market of the Budapest Stock Exchange in size only, in terms of clearing Xtend will be as secure as the regulated market.”
Fits the strategy
By the planned date, KELER CCP created all the conditions to launch Xtend, thus supporting the BSE strategy to facilitate the listing of domestic medium-sized companies and contributing to the development of the Hungarian capital market.
The services offered for Xtend fit the expansion strategy of KELER CCP as the company is seeking new target markets in both the Hungarian and the regional market for which it can provide clearing services.
„Xtend is a welcome extension of our portfolio and is a good reference in the market of medium-sized companies. This is important as several exchanges in the Central Eastern European region plan the creation of similar platforms. The clearing of Xtend might mean a slight advantage for KELER CCP in the competition to serve such platforms” – explained Károly Mátrai.
KELER CCP is on an upward path: its last year income amounted to HUF 1.27 billion, an increase of 11 %, and this year income is planned to reach HUF 1.37 billion, an increase of 5 %.
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KELER Group
The Magyar Nemzeti Bank and the Budapest Stock Exchange are the owners of KELER Central Depository Ltd. (KELER) that was founded in 1993. With KELER CCP Ltd., its subsidiary, (jointly: KELER Group), they form the infrastructure to ensure the smooth operation of the Hungarian capital and energy markets. KELER, as the only central securities depository of the Hungarian capital market, provides the infrastructure for Hungarian securities issuance, the settlement of Hungarian securities transactions. KELER CCP as clearing house ensures secure and transparent trade clearing: it substitutes the clients involved in the contracts concluded in one or several financial markets. It acts as buyer to all sellers and as seller to all buyers by acting as the only counterparty to all of them and guaranteeing trade settlement. KELER CCP as clearing house complies with the strictest European requirements, and provides clearing services to the Budapest Stock Exchange’s derivatives and securities markets, MTS Hungary government trading platform, CEEGEX Central Eastern European Gas Exchange and the TP Hungarian balancing gas market, and provides general clearing member services on HUPX, the Hungarian organized power trading market, the German, French, Czech and Serbian energy markets, and the Austrian gas market.
An innovative service provider with reliable professional and IT background, corresponding international practice, Hungarian and international regulations, the KELER Group builds on its stable shareholder background and capital position when serving its clients, takes into account the present and future needs of market participants and forms an interest group with market players. Its objective is to become a key player in the regional and the European markets by relying on market and service innovation.
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