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KELER Homepage :: Settlement :: International settlement

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.


Cross-border settlements

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.


Settlement of Hungarian local market transactions
Based on individual contracts KELER undertakes Hungarian local market transaction settlement for its clients with SWIFT communication. As part of this service buy and sell trades without and against payment are accepted, matched, related status management and settlement reporting is offered.

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 

KELER provides asset servicing, that it to say it facilitates the exercise of rights related to the securities in the case of various corporate actions of Hungarian securities kept in the securities accounts of its custody clients.

The service covers monitoring the publication of corporate action notices, keeping contact with the clients and the issuers and the processing and execution of the actions. Furthermore asset servicing includes the collection of dividends and interest income, proxy voting (authorized person participates and votes at the general meeting), tax reclaim related assistance and facilitating participation in elective corporate actions (e.g. document translation, authentication).

 


More information:
International Settlements

Ms.Tímea Bartal  – Head of International Settlements
Tel.: +36-1-483-6130
E-mail: bartal.timea@keler.hu

 

 


 

 

Ms.Klára Kállai  –  Domestic corporate actions 
Tel.: +36-1-483-6139
E-mail: kallai.klara@keler.hu
 
Mr. Péter Neppel– Cross-border and XETRA settlements
Phone: +36-1-4836293
E-mail: Neppel.Peter@keler.hu
 
Ms. Gabriella Purgai– International corporate actions
Phone: +36-1-4836263
E-mail: Purgai.Gabriella@keler.hu

Ms. Ágnes Buga Bánhidyné– Portfolio Management and Net Asset Value Calculation
Phone: +36-1-483-6263
E-mail: banhidyne.buga.agnes@keler.hu