Hungary: Appointment of RBI as operator for the direct link to KELER

Effective from settlement date

30 March 2015

Clearstream Banking¹ will appoint Raiffeisen Bank International (RBI) in Vienna, as agent to operate the Clearstream Banking direct account with the Hungarian CSD, KELER Ltd.

ING Bank N.V. Hungarian Branch Office will remain as our cash correspondent bank (CCB) for the Hungarian Forint (HUF). 

New depository details

Raiffeisen Bank International AG
Am Stadtpark 9,
1030 Vienna,
Austria

Depository Code: 08
BIC address: RZBAATWW

Reminder of CCB details:

Impact on customers

Enhanced securities settlement and cash instruction timings

Note: All times are Central European Time (CET).

Cash deadlines

Cash deadlines will improve from VD 14:15 to 16:00 (+105 min).

Settlement deadlines

Settlement deadlines will improve from SD 17:25 to 17:40 (+15 min) for free of payment (FOP) trades and from SD 14:15 to 15:45 (+90 min) for against payment (AP) trades.

Settlement times

The deadlines shown below are valid provided that the customer's instructions are complete, accurate and eligible for straight-through processing (STP) in Clearstream Banking and in the local market. Customers must also ensure that any necessary provision is available. If any of these criteria are not met, timely settlement cannot be guaranteed.

New procedures for domestic counterparties

For instructions with a requested settlement date on/or after 30 March 2015, customers should request their domestic counterparties to contact Raiffeisen Bank International AG (RBI) in Vienna in order to arrange pre-matching of instructions on behalf of Clearstream Banking at the following address:

Raiffeisen Bank International AG
Email: rsc-ic@rsc.co.at
Attn.: Eleonora Banyai
Tel + 43 1 33701-4828
Fax + 43 1 33701 4825

The formats of settlement instructions will remain the same following the appointment of RBI.

However, we wish to remind customers of the importance to correctly format the instructions by asking their counterparties to provide them with the KELER Ltd. main and sub-account numbers as requested below.

KELER Ltd. account numbers consist of a 4-digit main account number and 6-digit sub-account number (for example: 0450-000000).

In order for an instruction to be eligible for STP:

• Free of payment instruction: The KELER Ltd. main and sub-account numbers of the counterparty are mandatory.
• Against payment instruction: The KELER Ltd. main account number is sufficient.

Customers are requested to obtain this information from their counterparty.

N.B.: Account numbers can be provided in one of two ways:

• In the :95R::DEAG/REAG field (with no :97A::SAFE field provided); or
• If :95P::DEAG/REAG is used, in the associated :97A::SAFE field.

If a sub-account number is included in the DEAG/REAG field, the main account and sub-account numbers must be separated by -, 0 or [space]; when included in the SAFE field, they must be separated by /.

We would also like to anticipate that KELER will change their systems in May (implementation is currently planned for the 2 May 2015). We will inform customers in due course about the new settlement instruction formats.

Cash

Cash instruction formats will remain unchanged.

Disclosure requirements

There are no structural changes to the current Disclosure Requirements, however the Disclosure Requirements Guide will be updated to reflect some market changes.

Holding and transactions restrictions

There are no changes to the current holding restrictions described in the Market Profile - Hungary.

Tax

Please refer to the specific Announcement that will detail the impacts of the change of depository to the documentation already submitted by customers.

Customer guidelines for the cutover

Transfer of responsibilities from KELER to RBI

The transfer of responsibilities between KELER and RBI will take place on Friday 27 March 2015 based on end-of-day positions and will be effective on Monday 30 March 2015.

• All instructions with requested settlement date until 27 March 2015 will be handled by KELER Ltd.
• All instructions with requested settlement date from 30 March 2015, will be handled by RBI AG.

Customers should pass this information on to domestic counterparties.

Specific settlement instruction deadline on 27 March 2015 for FOP and AP instructions

In order to facilitate the transfer, we ask customers to enter their domestic settlement instructions with requested settlement date 27 March 2015 by 10:00 on 27 March 2015.

Instructions received after 10:00 on 27 March 2015 will be cancelled by the Clearstream Banking Settlement department, with an advice to customers via MT548. Customers will have to re-send the initially rejected instructions from Monday 30 March 2015.

Handling of pending trades

• Instructions matched for SD 27 March 2015 that remain pending at the end of the settlement cycles of 27 March (for example, because the counterparty is short of securities or cash) will settle with KELER. Receipts will be subject to a transfer the next day. Clearstream Banking will handle the transfer.
• Instructions provisioned but unmatched for SD 27 March 2015 will be cancelled by Clearstream Banking, with notice to the impacted customers. Customers will need to re-instruct with the new depository (RBI) details.
• Pending instructions not provisioned in our system by end of business day 27 March 2015 will be cancelled by Clearstream Banking, with notice to the impacted customers. Customers will need to re-send the initially rejected instructions.

Further information

An updated Creation Link Guide -Hungary will be available on our website on the effective date to reflect the changes.

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers to Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248.