KELER CCP

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KELER CCP
Founded 2008

KELER CCP is a central counterparty (CCP) clearing house based in Hungary that provides clearing and guarantee services for various financial markets. Established as part of the KELER Group, KELER CCP plays a crucial role in the Hungarian financial infrastructure by managing counterparty risk and ensuring the smooth operation of cleared markets.

History[edit]

KELER CCP was founded in 2008 by KELER, the Central Bank of Hungary (MNB), and the Budapest Stock Exchange (BSE). The company commenced operations on January 1, 2009, taking over the central counterparty function at the BSE. In 2010, KELER CCP expanded its services, beginning to clear transactions on the Hungarian natural gas balancing platform and offering services to non-clearing members on the HUPX market. The following year, in 2011, KELER CCP transformed into a limited liability company.[1]

The years 2012 and 2013 saw significant growth for KELER CCP. The BSE Alternative (BETa) market and MTS Hungary were launched in 2012. In 2013, KELER CCP became the central counterparty for the newly launched CEEGEX (Central Eastern European Gas Exchange) market and evolved into a fully-fledged central counterparty clearing house by taking over clearing activities from KELER. This expansion was supported by a HUF 4 billion capital increase from the parent company.

KELER CCP achieved important regulatory milestones in 2014. The Central Bank of Hungary approved it as a designated clearing system operator for the BSE spot and derivative market and the MTS Hungary market. Later that year, KELER CCP became the first in the region and the ninth in Europe to be licensed under EMIR (European Market Infrastructure Regulation). The company continued to expand its reach, starting collaboration with the Serbian power exchange SEEPEX in 2015 and providing clearing services to the Serbian and Belgian markets in 2016.

In the following years, KELER CCP further diversified its services and markets. It successfully joined T2S (TARGET2-Securities) in 2017, introduced BSE Xtend market clearing in 2018, and began offering clearing and settlement services on HUDEX, the Hungarian Derivative Energy Exchange, in 2019. The BSE Xbond was launched in 2020. In 2021, KELER CCP implemented the Settlement Bank Model, aiming to develop a forward-looking, internationally competitive solution for more efficient and customer-centric operations, serving its increasingly diversified client base both domestically and internationally.

Services and Operations[edit]

KELER CCP offers clearing and guarantee services for several markets, including:

The company acts as a central counterparty, stepping between the original counterparties of each trade and assuming the risk of default. This process helps to reduce systemic risk in the financial system and provides stability to the markets it serves.

Regulatory Compliance and Accreditation[edit]

As a central counterparty, KELER CCP operates under strict regulatory oversight. The company adheres to European Union regulations for financial market infrastructures and is subject to regular audits and assessments to ensure compliance with international standards.

Recent Developments[edit]

In recent years, KELER CCP has undergone several significant developments:

  • System Upgrade: The company successfully rolled out a new system and implemented a model change, which was considered a success.
  • CCP12 Membership: KELER CCP joined CCP12, a global association of central counterparties, further solidifying its position in the international clearing landscape.
  • Growth: The KELER Group, of which KELER CCP is a part, reported double-digit growth, indicating positive performance and expansion of services.
  • Data Protection: KELER CCP provides data protection training to employees to ensure data protection awareness and proper management of data-related issues.

Governance and Transparency[edit]

KELER CCP holds annual General Meetings where important resolutions are passed regarding the company's operations and future strategies. The company regularly publishes announcements and client information to keep market participants informed about changes in clearing and settlement procedures, margin requirements, and other relevant updates.

References[edit]

  1. HISTORY. Keler KSZF.