Information on KELER’s development projects and related client event

Dear Clients, Partners,

Even during the state of emergency announced by the Government of Hungary, KELER Group continues to work on implementing its projects launched earlier, especially the developments ensuring legal compliance with the published deadlines.

In this document we would like to provide information on the status of our developments and on the deadlines of launching our services on the market and to our clients.

CSDR authorisation: KELER has filed all of the documents required by the Supervisory Authority for issuing the representation letter launching the next, maximum six-month phase of the procedure. Despite the fact that the pandemic slows down the authorisation procedure, KELER still expects to obtain the authorisation by the end of 2020.

Encouragement of long-term shareholder engagement (SRD 2): SRD 2 requires KELER to launch new services both as a central depository and an intermediary. KELER plans to comply with the requirements of the regulation by the deadline of 3 September 2020. (The date of launching the services may be influenced by the EU regulations amended as a consequence of the pandemic.) The development of the IT solution supporting the receipt and transmission of the request for shareholder identification, the related response, the organisation of general meetings and notices related to corporate events other than general meetings has been commenced.

The Client Information related to our system named KELER CAPS is available by clicking on the attachment below. If you have any questions in connection with this document, please send it to the following email address before 29 May 2020.

We will answer the questions at a virtual SRD workshop planned to be held by the NSG SRD workgroup in the first half of June 2020.

KELER Service Development Program: Due to the pandemic, the work processes of the Service Development Program had to be reorganised completely. It is difficult to work in the projects in this situation, but our objective is to perform the tasks before the deadlines and to implement the Program according to the original schedule.

The deadlines of the program have not been put at risk by the pandemic yet. The market tests are planned to be launched on 12 December 2020, and the system is planned to go live on 31 March 2021.

  • In the period following the launch of the program and contracting with the suppliers, the 1-5 milestones of the Securities Settlement Subsystem have been specified (for the whole domestic settlement procedure outside T2S). Milestones 1-3 have been developed (up to transaction pairing), delivered for testing and tested successfully. Milestone 4 (status modification processes and functions) has been developed and delivered for testing. The specification and internal testing of the Master Data Manager and the Reporting Subsystems have been performed according to the schedule.
  • Currently, our colleagues are working on the specification of the last, 6th milestone of the Securities Settlement Subsystem (settlement processes in T2S) together with the supplier (until 30 June 2020), and besides this, the next phases of the Master Data Manager, Reporting and Fee Calculation Subsystems are being specified and tested.
  • KELER plans to ensure compliance with the requirements of the Settlement Discipline Regime (SDR) with the developments to be implemented within the frameworks of the Service Development Program.
  • The client documents – updated Service description and message formats uploaded to SWIFT MyStandards portal – are expected to be published by the end of Q2 2020.

Should you have any further questions, please do not hesitate to contact us at the email address keler@keler.hu.

Thank you for your cooperation and patience!

Sincerely,
KELER Group