Expansion of securities settlement services for domestic participants

KELER joins Target2-Securities, the pan-European platform for the settlement of securities transactions

7 June 2012

Following a decision by the Board of Directors of KELER Zrt, the securities leg of transactions conducted in domestically issued securities will be settled through Target2-Securities (T2S), the pan European platform for the settlement of securities transactions. The transition to the new platform is expected to take place in the middle of 2016. Joining T2S will result in a greater number of services provided by KELER for domestic market participants and investors.

Target2-Securities (T2S) is one of key projects of the European Central Bank (ECB). Its main objective is to consolidate European capital markets. By implementing a central platform for securities account management and securities settlement, the ECB aims at settling securities transactions “without borders”. The system, with the participation of European central securities depositaries, including Hungary’s KELER, will settle cross-border securities transactions in a unified and centralised manner and in large volume.

Following a decision by the Board of Directors of KELER Zrt, the securities leg of transactions conducted in domestically issued securities will be settled through T2S, the pan-European platform for the settlement of securities transactions. The transition to the new platform is expected to take place in the middle of 2016. However, the Magyar Nemzeti Bank has decided that the cash leg of forint-denominated securities transactions will continue to be settled in case of credit institutions by the MNB and in case of investment service providers will continue to be settled by KELER Zrt, meeting the requirements of the market. This decision is consistent with the practice of central banks of the region; however, the MNB will be ready to review it if needed by market conditions.

Joining T2S will broaden the range of settlement services available for market participants and investors. Furthermore, T2S entry by the Hungarian securities market will result in a significant improvement in access to Hungarian securities abroad and to foreign securities in Hungary. Another important benefit of T2S is fostering technical harmonisation of European securities markets in the settlement of securities transactions and, in the longer term, indirectly, the management of corporate events related to securities.

Joining T2S will be a key project for the domestic securities market and KELER over the next few years.

Magyar Nemzeti Bank KELER Zrt.

Communications Customer Relations and Marketing

Vissza a tetejére

The primary objective of the MNB shall be to achieve and maintain price stability. (...) Without prejudice to its primary objective, the MNB shall support the maintenance of the stability of the system of financial intermediation, the enhancement of its resilience, its sustainable contribution to economic growth; furthermore, the MNB shall support the government’s economic policy and its policy related to environmental sustainability, using instruments at its disposal.