SIA to connect Hungarian CSD Keler to T2S
SIA, in partnership with Colt, has been awarded the contract to connect Hungarian central securities depository Keler to T2S, the new single European platform for the settlement of transactions in domestic and cross-border securities.
Owned 53.33% by the Central Bank of Hungary and 46.67% by the Budapest Stock Exchange, Keler provides wholesale services and infrastructure to the players and intermediaries of the Hungarian capital markets. It will migrate to T2S in the third phase planned for September 2016, and will be among the first central securities depositories in central and eastern Europe to access the platform directly. SIA and Colt were awarded one of the two Value Added Network Service Provider licenses for T2S by the European Central Bank.
Target 2-Securities, a project promoted by the ECB which will be managed by four central banks (Banca d’Italia, Deutsche Bundesbank, Banque de France and Banco de Espana), is one of the initiatives for the creation of the single European market following the Euro, Target 2, SEPA (Single Euro Payments Area) and PSD (Payment Services Directive). According to forecasts from the European Central Bank, Target 2-Securities will be capable of handling a daily average of over one million securities transactions, also contributing to a significant reduction in cross-border settlement costs.
“Our technology infrastructures will carry the securities transactions of Hungary, a country with positive economic growth trends in which we are already operating through our subsidiary SIA Central Europe”, said Gian Bruno Mazzi, senior vice president of SIA.
“I am convinced that we have selected a network solution that best suits the needs of the Keler Group, and thereby we enhance our capabilities and offering to meet the deadline for T2S Settlement as well”, said Gyorgy Dudas, chief executive of Keler. “With the SIA-Colt support, we will offer regional investor CSD services including standardised T2S settlements, safekeeping and optional ancillary solutions. Our safekeeping in Central-Eastern Europe will be provided by direct CSD links, while our asset and local currency services will be supported by professional partners.”