KELER CCP Central Counterparty Activity

As the sole central counterparty in Hungary, and the first in the region to receive its EMIR licence, KELER CCP Ltd. has been playing a prominent role in the European and regional capital and energy markets for more than two decades and for more than 8 years respectively. The clearing and guarantee undertaking services provided ensured that KELER CCP has been following a path of continuous development, primarily due to the growth of the energy market, but the capital market clearing services offered by KELER CCP also contributed to the sustainable growth of the company.

The strategic goal of KELER CCP is to act as a central, regional clearing service provider by relying on the clearing house expertise acquired in the past years. KELER CCP provides services in the capital and gas markets as a central counterparty, and since 2010, it has been providing general clearing member services in the energy markets cleared by European Commodity Clearing (ECC), Germany.

Looking at the figures, in the first three quarters of 2018, KELER CCP realized an outstanding profit before tax of HUF 183 million, which is 134% of the planned amount for the entire year, and is very close to the year-end figure of 2017. Income from central counterparty activity was 9.2% higher than in the same period of last year, and amounted to HUF 1 014 million. Income from non-core activity totalled HUF 85.9 million. 

In the third quarter of 2018, KELER CCP had 135 clearing and non-clearing members from 23 countries, out of which 28 were capital market clearing members, 44 were gas market clearing members, and 76 were energy market non-clearing members. 

As central counterparty (CCP), KELER CCP performs clearing on the following trading platforms: 
  • Budapest Stock Exchange
  • BÉTa market
  • MTS Hungary
  • Trading Platform
As central counterparty, KELER CCP acts as buyer towards all sellers and acts as seller towards all buyers regarding the trades concluded on the markets above stated, thus eliminating the arising risk, and novating the trade. KELER CCP undertakes guarantee for the positions arising from novation.
KELER CCP was licensed by the MNB, and prepared its complex risk management and clearing system for the start of the BSE Xtend trading, which market the BSE successfully launched in the past days.

Brexit, the impending exit of the United Kingdom from the European Union does not pose any threat to the operation of KELER CCP. Currently, the exit could have an impact on the clearing service provided to MTS Hungary, operated by EuroMTS Ltd. registered in the United Kingdom. However, MTS is taking steps to ensure its activities can be continued without disruption after the exit also; as a result the MTS Group would relocate to Italy.