Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 6

Convergence of Securities Systems, both within countries and across borders, should be encouraged where this eliminates operational risk, reduces cost and enhances market efficiency.

1.	Is the depository linked electronically and in real time with other segments of the core market infrastructure (e.g. trading platforms, netting systems, matching platforms, payment systems)?	In terms of stock exchange transactions the Hungarian market is full STP. KELER (netting, cash accounts of brokers, securities accounts) is electronically connected to the stock exchange (matching) and the National Bank of Hungary (cash accounts of banks). For OTC DVP transactions KELER's processing (including communication, matching and reporting) is also STP - however the input from clients into the client terminals be a manual activity depending on the user.
2.	Is there one or more depository or settlement system in the market?	No. KELER is the only Central Securities Depository and Clearing House in the Hungarian market.
3.	If there are several, has a consolidation been considered? If yes, by when?	Not applicable.
4.	Does (do) the securities system(s) allow other domestic or foreign systems to establish direct links on an equal basis to local members?	No.
5.	Does (do) the securities system(s) allow foreign market participants to become direct participants?	Not applicable.