The Central Clearing House and Depository (Budapest) Ltd. (KELER) has agreed to provide net settlement for MTS bond trading in Hungary. The decision comes after an agreement was signed last month by Hungarys Government Debt Management Agency to launch an electronic interdealer market for local government debt.
KELER will provide multilateral net settlement for the secondary government bond trades that will be traded on the MTS Hungary platform beginning Jan. 2, 2012, according to SEB.
MTS recently launched a similar platform in the Czech Republic, and market participants in Hungary consider the platform will strengthen the domestic fixed income market.
The settlement cycle of MTS transactions will be T+2, similar to the current Budapest Stock Exchange trades. KELER CCP will continue to provide its guarantee system to support settlements, SEB says.
(CG)