- Flow of Settlement
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The KRX settles the trades of members through the linkage with the emissions permits registry and settlement banks.
Flow of Settlement No. Details of Processing Hours ①
②Members submit quotations to the KRX via member systems
KRX notifies members of executed transactions on a real-time basis~12:00 ③ Information on trades that includes the correction of erroneous transactions is transmitted to the clearing/settlement system. ~12:30 ④ KRX notifies members of final settlement details determined through trade confirmation, assumption of liability and netting. ~13:00 ⑤ 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.
- The Exchange notifies the finalized settlement details to the members and GIR by 13:00.
- Payments
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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
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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
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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
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- 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.
주의At 15:00 of the day of trading, the buyer confirms the balance of emissions permits, and the seller can withdraw the amount sold