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Keler and IRGiT join forces for CEE regional clearing collaboration

Keler and IRGiT join forces for CEE regional clearing collaboration

Key Polish and Hungarian infrastructure entities have signed a collaboration agreement to establish regional clearing services for central, eastern and south-eastern Europe.
The clearing services, which will be known as Central Post-trade Solutions, will target commodities, energy and gas markets in its initial operation.

The agreement has been signed by the Warsaw Stock Exchange (GPW) and the Polish Power Exchange (Towarowa Gielda Energii, TGE) and by the Hungarian National Bank and the Budapest Stock Exchange.

Central Post-trade Solutions is expected to be operational by the end of September 2022, according to the term sheet signed between these core signatories.

This will bring together clearing services delivered by Keler, the Budapest-based clearing house and central securities depository, with the Polish clearing entity Izba Rozliczeniowa Gield Towarowych (IRGiT).

The Polish Power Exchange, TGE, will be majority owner of the Central Post-trade Solutions company.

In a joint statement, the founding partners indicate that the objective of this project is to create a leading commodities clearing house for CEE and SEE which can compete with other comparable entities in western Europe.

The new entity will also cooperate with local energy and gas markets in CEE and SEE markets by supporting new projects implemented in this part of Europe.

Piotr Zawistowski, president of the management board of TGE, says: “The agreement signed today and a future investment agreement with the Hungarian partners will create a new quality in post-trade services for commodity markets, mainly for power and gas.

“We hope that the new solution we are working on with our Hungarian partners will strengthen and accelerate the development of commodity markets in CEE and SEE and reinforce TGE’s strategic position in the CEE region.”

Richard Végh, CEO of Budapest Stock Exchange, says: “Combining the Keler CCP and IRGiT will allow all parties to strengthen their post-trade infrastructure and explore new business opportunities.”

GPW currently holds 100 per cent of share capital in TGE, the Polish Power Exchange, and indirectly, within TGE Group, 100 per cent of share capital of IRGiT.

The Hungarian National Bank is 53.33 per cent owner of the Keler CSD, with remaining shares in Keler owned by the Budapest Stock Exchange.

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