- Account opening and confirmation of customers
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- Account opening
- The emissions permits are different from typical types of financial products such as stocks and derivatives in legal terms. Thus, the Exchange opens a “general commodity account” like in the gold market by taking into account the characteristics of general commodities such as gold and silver.
- Account opening for investors
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Investors can trade emissions permits through members (financial investment companies) after completing necessary documents.
- Method of accounting opening
- Investors visit the head office or a branch of members or enter into an account opening contract online.
- Distribution of documents explaining products
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Members distribute the terms and conditions for spot trading of emissions permits and the investment guide and collect the documents required for identifying information regarding investors.
- Methods of order receipt and rejection
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- Method of order receipt
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By way of electronic communication, telephone, documents, etc.
- Electronic communication: A member receives orders online (HTS, MTS, Internet, etc.) after entering into an agreement with an investor in advance regarding the electronic communication method.
- Telephone or fax: Authentication of an investor and record evidentiary documents on the order
- Documents: A member receives an order which carries details of order and signature of or seal affixed by an investor.
- Obligatory/Discretionary rejection of orders
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Members may reject an order that disturbs the soundness and fairness of the market
- Obligatory rejection
- Any orders that breach3) the regulations of the Exchange or exceed the good faith deposit.
- Fn. 3)
- Orders that may hamper the fairness in the market such as the submission of excessive phantom orders
- Discretionary rejection
- When it is deemed necessary for the protection of the public interests or the maintaining of an orderly market.
- Good faith deposits and brokerage commissions
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- The rate of good faith deposit
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Not only the allocated corporations but also the investors need to deposit the entire settlement quantity prior to the order placement.
- Buying investor: 100% deposit in cash in advance
- Selling investor: 100% deposit of emissions permits to be sold in advance.
- Brokerage commissions
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Members decide their own rates and collection methods at their discretion.
- Whenever making or changing the guideline for collecting brokerage commissions members need to disclose the details to investors and notify the same to -the Exchange within 5 trading days from the implementation date for the guideline concerned.