KELER — Introduction
Központi Elszámolóház és Értéktár (Budapest) Zrt. (hereinafter referred to as: KELER) was established in 1993 by the National Bank of Hungary (50 %), the Budapest Stock Exchange (25 %) and the Budapest Commodities Exchange (25 %).
KELER provides quasi wholesale services and infrastructure to the players and intermediators 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 June 1, 2010 the gas market) and securities issuers. The clearing house allows the securities transactions that is the exchange of funds and securities of market players 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 the Act CXX of 2001 on the capital market (Tpt.), the Act CXII of 1996 on credit institutions and financial enterprises (Hpt.) and the 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 Hungarian Financial Supervisory Authority, 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.
a) maintenance of the central securities register;
b) ISIN issuance;
c) creation, registration and cancellation of dematerialized securities;
ii. With the settlement of the trades made in the organized markets of the Budapest Stock Exchange, KELER CCP Ltd. as central counterparty ensures the full administration of spot and derivative transactions, in accordance with international recommendations. For the OTC securities market — due to its special role in the real-time giro system (“VIBER”) of the National Bank of Hungary — it provides a real time (“RTGS”) DVP (Delivery vs. Payment) settlement facility. By means of the aforementioned earned monopolistic activities — wide-spread custody management, securities account keeping, transaction management and cash management services — it has encouraged 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)