International settlements and corporate actions
Foreign securities related settlement services and corporate actions
For the management of foreign securities and related cross-border settlement KELER concludes an account agreement with selected foreign custodians. Securities held by clients and securities in the portfolio of their clients are registered in a non-segregated manner at the foreign custodian of KELER.
In addition to prevailing regulations the rules defined by the foreign custodian set the scope of foreign securities that KELER can accept. If foreign securities are issued in Hungary KELER undertakes the registration of the foreign securities based on the individual agreement concluded with the foreign custodian or clearing house. If the issuer lists foreign securities on the BSE that can be accepted by KELER, at the written request of the issuer KELER issues the statement of acceptance on stock exchange settlement based on the data held by the foreign custodian. Securities credited through the foreign custodian are shown as account receivables only on the account of the client, such securities cannot be physically delivered in or out.
For cross-border settlements KELER provides both free of payment (FOP) and against payment (A/P) transaction settlement for clients.
Securities issued in individual countries can be traded in several other stock exchanges and markets, among them on the Budapest Stock Exchange also. Accordingly such “multi-market” securities can be settled in the settlement systems of several central depositories serving domestic and remote markets. Securities movements among various markets can be concluded as cross-border settlements depending upon the links established between the settlement systems.
Management of corporate actions of foreign securities
KELER ensures participation in corporate actions related to the foreign securities of the client where participation is provided for by the foreign custodian of KELER.
Clients are entitled to participate in corporate actions if they hold balances in the securities concerned on the due date of the corporate action, in certain foreign markets those clients can participate that are holders of securities based on securities buy (in certain cases sell) transaction data (deal date, ex-date, settlement date) but settlement is not yet completed in the system of the foreign custodian.
Based on information received from the foreign custodian KELER informs clients on the type and important dates of the event and the order of execution. Important dates and the order of execution of corporate events of foreign securities are not (necessarily) the same as for Hungarian securities.
Management of domestic corporate actions for non-resident client
Ms.Tímea Bartal – Head of International Settlements
Ms.Klára Kállai – Domestic corporate actions
Mr. Péter Neppel– Cross-border and XETRA settlements
Ms. Gabriella Purgai– International corporate actions
Ms. Ágnes Buga Bánhidyné– Portfolio Management and Net Asset Value Calculation