KELER KSZF A new ECC clearing entity

7 April, Budapest

Károly Mátrai

Managing Director, KELER KSZF

KELER Group - Introduction Ownership - KELER

• KELER Zrt. – CSD – Founded in 1993 – Banking license, supervised by HFSA and NBH – CCP role till 2009 – Shareholders’ equity (EoY 2009): • HUF 15,7 billion (EUR 58 m) •

KELER KSZF Kft.

– Founded in 2008

– CCP

– Supervised by HFSA and NBH – Started operation 1 Jan, 2009 – Shareholders’ equity (EoY 2009): • HUF 246,5 m (EUR 0,9 m) 46,67% National Bank of Hungary Budapest Stock Exchange

Ownership - KELER CCP

13,33% 11,67% 53,33% 75,00% KELER Budapest Stock Exchange National Bank of Hungary

KELER Group - Clients

• • • • • • • Custodians Issuer companies Credit institutions Brokerage companies Commodity Service Providers Gas trading companies National Bank of Hungary

KELER Group - Services

• Securities and cash account management • Issuer services – ISIN allocation – dematerialization – share registry • Cross-border settlement • Collateral management • Central counterparty service

KELER KSZF - CCP services

• Cleared markets: – BSE cash products (equities, bonds, ETFs, certificates) – BSE derivatives (share, indices, FXs, commodities) – Gas balancing market (day-ahead, capacity) –

HUPX as of 1 July, 2010

General clearing model

EPEX / HUPX ECC

CLEARING T 1 T 2 T 3 T 4 GCM 1 GCM 2 T 1 T 2 T 3 T 4

Factors to be considered Trading members have to choose a general clearing member!

• • • • Credit risk (counterparty risk) Legal risk Communication Costs

KELER KSZF as a GCM

• • • • • • • Limited credit risk, strong financial and ownership background Efficient risk management methodology Long and prosperous history in Hungarian financial market Competitive, transparent fees Wide range of services Hungarian legislative framework Hungarian communicative environment

Services for HUPX Members

• KELER KSZF – Settlement in HUF – Collateral management (HUF, EUR denominated collaterals) – Reporting in Hungarian • KELER – Banking services – HUF/EUR conversion – Internet communication via KID – Help Desk 07-22h (in Hungarian)

Risk management

Risk Management tools: – Membership requirements – Margin requirements – Collateral management

How to become a member of KELER KSZF

(1) Sign a Membership Agreement with KELER KSZF (2) Sign an NCM Agreement and Application form with ECC (3) Comply with Business Rules of KELER KSZF (4) Sign a Service Agreement with KELER (includes settlement management, cash and securities accounts management) (5) KID Agreement for Internet banking (6) Provide collateral to KELER KSZF in cash or securities

Steps to do

(1) Give back-office contact details (2) Visit our website for more information: (www.kelerkszf.hu; www.keler.hu

) (3) Visit our Client Office at 1075 Budapest Asbóth street 9-11.

www.kelerkszf.hu

[email protected] phone: (+36)-1-483-6230