Hungarian CSD Keler Introduces Partial Central Matching Service

The Hungarian CSD, KELER, has introduced central pre matching, with effect from 29 November. But local custodians say the news is not as good as it sounds. "Although pre matching statuses can now be downloaded in electronic form, there is

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The Hungarian CSD, KELER, has introduced central pre-matching, with effect from 29 November. But local custodians say the news is not as good as it sounds. “Although pre-matching statuses can now be downloaded in electronic form, there is still no immediate change in related market practices, as several issues are still hindering a real central-pre-matching at KELER,” says a spokesman for HVB Bank Hungary in Budapest. “KELER remains unable to provide the full scale of matching statuses, namely the reasons for a mismatch. Trades are matched on the underlying beneficiary level on the market, but this information is not compulsory to meet the matching criteria at KELER, so most custodian banks do not provide it in their instructions to KELER. This reflects the fact that a segregated account structure in the custodians’ books is linked to an omnibus account at KELER. Most custodians release instructions to KELER already after an initial pre-matching has been performed with counterparts in their own books beforehand.”

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