- Auction is a special type of competitive trading where there is a single trading party on one side and there are multiple trading parties on the other.
- In the emissions market, the paid allocation or additional allocation is conducted by way of auctioning. The auction-related businesses are performed by the Exchange.
- Participation in bidding
- Members may submit their bidding prices and quantities at a designated space opened for members after signing up for membership at the website dedicated to the emissions trading market
- In the auction market, biddings are received during the quotation receiving hours (09:00-10:00) for determining opening prices of the emissions trading market and the trading is executed at 10:00. In order to prevent possible overheating of the market and price manipulation, the information on bidding is not disclosed.
- Order of successful bidders
- According to the price priority principle, successful bidders are decided consecutively in the descending order of bidding prices.
- Successful Bidding Prices
The bidding price at which the entire auction quantity is executed becomes the execution price for the entire bidding quantity (a single price method).
(Example - Auctioning): The auction quantity is 10,000T and the minimum bidding price is KRW 10,000
Successful Bidding Price Bidding Price Bidding Quantity Remarks 11,000 1,000 → 1,500 → 2,500 Entire quantity executed.(5,000T) 10,500 1,000 → 2,000 Entire quantity executed.(3,000T) 10,300 1,000 → 1,000 → 2,000 Partial quantity executed. (2,000T)1) 10,000 1,000 → 2,000
- Fn. 1)
- A member who has submitted the bidding quantity first is decided as the first successful bidder.
- When the bidding quantity matches with the auction quantity consecutively, the entire 10,000T can be auctioned at the bidding price of KRW 10,300. Thus, the successful bidding price becomes KRW 10,300.
The above-mentioned auction method is a temporary plan and is subject to change depending on the discussions with a competent authority when there is demand for auction.