Flow of Settlement

The KRX settles the trades of members through the linkage with the emissions permits registry and settlement banks.

Flow of Settlement
Flow of Settlement
No. Details of Processing Hours

Members submit quotations to the KRX via member systems
KRX notifies members of executed transactions on a real-time basis
~12:00
Information on trades that includes the correction of erroneous transactions is transmitted to the clearing/settlement system. ~12:30
KRX notifies members of final settlement details determined through trade confirmation, assumption of liability and netting. ~13:00
Delivery of emissions permits and payments
  • Emissions permits: seller’s account → KRX (CCP)
  • Payments: buyer’s account → KRX (CCP)
~13:30
KRX’s settlement instruction
  • Emissions permits: KRX (CCP)→ buyer’s account
  • Payments: KRX (CCP)→ seller’s account
~14:00
GIR(Green-house Gas Inventory and Research Center of Korea) and Settlement Banks notify KRX of the fact on settlement completion in the emissions market. ~15:00
Generation of settlement details and notification
KRX, as a CCP, finalizes the settlement details through trade verification, assumption of liability under novation arrangement and netting.
  • The Exchange notifies the finalized settlement details to the members and GIR by 13:00.
    • To members: Settlement details on emissions permits and payments / To GIR: Settlement details on emissions permits
  • The settlement details are transmitted to members through the order input program or GIR emissions permit registry system.
Payments

A buying member makes payments and a selling member deposits emissions permits to the KRX account by 13:30 according to the settlement details notified by the KRX.


  • Payments: A buying member transfers the payment to the KRX account opened at a settlement bank.
  • Delivery of emissions permits: GIR transfers the emissions permits from the selling member’s account opened at the emissions right registry to the KRX account.
Settlement instructions

When the payments and the deposits of emissions permits are made, the Exchange issues settlement instructions at 14:00


  • Payments: The Exchange instructs the settlement bank to transfer the payment from the KRX account to the account of the net selling allocated corporation
  • Emissions permits: The Exchange instructs the GIR to transfer emissions permits from the KRX account to the account of the net buying allocated corporation.
Payment and delivery

The cash and the emissions permits are transferred according to the settlement instruction by 14:30.


  • Payments: Transferred by settlement banks from the KRX account to a selling member’s account
  • Emissions permits: Transferred by the GIR from the KRX account to a buying member’s account
Settlement cycle
  • The trades are settled on the day of trading (T+0)
  • Settlement is completed by 15:00 after the clearing/settlement processes following the market closing of the day.
    At 15:00 of the day of trading, the buyer confirms the balance of emissions permits, and the seller can withdraw the amount sold
Content Manager
  • Emissions Market 051-662-2825