KELER — Introduction
Central Clearing House and Depository (Budapest) Ltd. (hereinafter referred to as: KELER) was established in 1993 by the Magyar Nemzeti Bank (50 %), the Budapest Stock Exchange (25 %) and the Budapest Commodities Exchange (25 %).
KELER provides quasi wholesale services and infrastructure to the players and intermediaries of the Hungarian capital market. Among others the direct partners of KELER include investment firms, credit institutions, commodity brokers, investment fund managers, players in the organized markets (energy market and from 1 June 1 2010 the gas market) and securities issuers. The clearing house allows the securities transactions of market players, that is to say the exchange of funds and securities to be settled free of risks, quickly and efficiently.
Since January 1, 2004 KELER operates as a special credit institution, its legal status and tasks are governed primarily by Act CXX of 2001 on the Capital Market (Tpt.), Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises (Hpt.) and he Act CXXXVIII of 2007 (Bszt.) on Investment Firms and Commodity Brokers and on the Regulations Governing Their Activities.
The service activities of KELER fundamentally belong to three different categories:
i. On the basis of legal obligations, as well as the assignment by the predecessor of the Magyar Nemzeti Bank, KELER acts as the Central Depository of Hungary. This also includes the generation (creation), recording and cancellation of dematerialized securities in line with strict security requirements, as well as keeping the central securities register and the issuance of central securities codes. Additional depository – but not central depository – functions, primarily securities custody and securities account maintenance also form part of this category.
ii. With the settlement of the trades made in the regulated markets of the Budapest Stock Exchange, KELER CCP Central Counter Party Ltd. as central counterparty ensures the full administration of cash and derivative transactions in accordance with legal regulations and international recommendations, KELER is in charge of related account management and settlement. For the OTC securities market — due to the special role played in the real-time giro system (“VIBER”) of the Magyar Nemzeti Bank — it provides a real time (“RTGS”) DVP (Delivery vs. Payment) settlement facility. By means of the aforementioned activities, wide-spread custody management, securities account keeping, transaction management and cash management services it has facilitated the development of a number of capital market standards and institutionalized procedures.
iii. In addition to share registry and other supplementary services (e.g. dividend payment, transformation of shares into dematerialized securities) rendered to Hungarian securities issuers, KELER as a player in a competitive market offers cross border securities settlement services.
KELER History download (.pdf, 157 Kb)