DVP-OTC Settlement at KELER
KELER settles OTC prompt and repurchase transactions and transactions of custodians real time, in a gross manner, transaction by transaction, in line with the DVP (delivery versus payment) principle.
The essence of the DVP principle is that actual delivery, that is to say settlement after dealing is completed against payment only. (In addition to OTC deals fix and auction deals made on the stock exchange are also settled in a gross DVP manner.)
Real time processing by KELER, in harmony with the real time payment system VIBER, operated by the NBH is offered to clients.
Transaction matching is started immediately after receiving instructions in the system. KELER recycles DVP settlements for 5 days after the original settlement date or cancels them at the end of the day, based on the instruction of the client. Matched transactions are cancelled until transaction booking based on the instruction given by both the seller and the buyer, the transaction of the party not requesting cancellation is given a status of ‘Good’.
Transaction matching and settlement is concluded with regard to the price tolerance amount defined by KELER, always against the purchase price stated in the order of the buyer. In addition to information on the status of deals KELER sends an advice to the buying client on settlements requested by the other party (seller) against the buying client.
While KELER keeps securities accounts for all its clients, only a part of cash accounts are maintained within the system of KELER (cash accounts of broker companies), as the NBH keeps the cash accounts of banks. Joint development with the NBH and the well-known SWIFT communication link used for interbank payments allow KELER to access the cash accounts kept by the central bank (to execute financial debit and credit entries resulting from securities transactions).
Settlement and credits are final and irrevocable.
Please contact our Client Service between 9:00 hrs and 15:00 hrs from Monday to Friday if you are interested in our services.
Phone number: + 36-1-483-62-40
Mobile phone: +36-30-481-43-31
Related downloadable documents:
CONTRACT ON CONSOLIDATED SECURITIES ACCOUNT MANAGEMENT AND MAINTENANCE NO.01/2008
FORM CONTRACT ON SETTLEMENT SERVICES FOR CREDIT INSTITUTIONS NO. 14/2006
Available only in Hungarian, if you need this document, please send an e-mail us: firstname.lastname@example.org