3 Payment and securities infrastructures Smooth execution of payments and the reliable, efficient operation of financial market infrastructures are essential for the execution of real economic and financial transactions. Payments in central bank or commercial bank money and transactions performed with securities and other financial instruments require centralised systems that allow for the clearing and settlement of transactions. VIBER is a real-time gross settlement system operated by the MNB. Its primary purpose is the settlement of large value, money and capital market transactions between participants and on behalf of their customers and the settlement of transactions cleared by related financial market infrastructures (ICS, KELER Group, CLS). The Interbank Clearing System (ICS) is a gross payment system mainly for the clearing of households’ and companies’ low amount payments operated by GIRO Zrt. (GIRO), offering three clearing methods: instant, intraday and overnight clearing. The clearing of card transactions is performed in the systems of international card companies (Visa, MasterCard), while postal payment instruments are typically cleared in the Postal Clearing Centre (PCC). Members of the KELER Group, i.e. the central securities depository (KELER CSD) and the central counterparty (KELER CCP), are responsible for securities clearing and settlement services, and the registration of domestically issued securities. CLS is an international FX settlement system operated by CLS Bank. It is based on a multi-currency payment-versus-payment (PvP) mechanism and eliminates FX settlement risks. (Chart 27) Chart 27 Overview of Hungarian financial market infrastructures (2020) D4EFG)#*+,)%H C(*($I' 3(05#*(3 C&1(3 .+3$E%3(05#*(3(. 6JKF7 <'?:< ! <8'=:?' &4; ; !"#$%&'()#*+,")-' ./*!"0$ 1%0../*&'.)23&04' 3(05#*(3'61.37 ;'<9? &4< < 8'89: 8'<:? ;: ;;<'=>> ?:<'@<<' ;><'??=' <';=;A ;8'>=B =';9B 3 =<< Turnover in billion HUF Overseen systems Transactions settled in the overnight clearing Transactions settled in the intraday clearing 3 Transactions settled in the instant clearing 4 On-us transactions are not included 5 Only the interbank part of total payment card transactions is cleared in the payment card clearing systems *https://www.posta.hu/static/internet/download/MP_Eves_jelentes_2019_1202.pdf 1 2 30 PAYMENT SYSTEMS REPORT • JULY 2021