From now on, greenhouse gas emissions allowances can be traded through securities firms. The government is introducing a consignment trading system for the emissions allowance market to expand third-party participation.

After holding an opening ceremony for the greenhouse gas emissions allowance exchange at the Korea Exchange (KRX) in the International Finance District of Nam-gu, Busan, on January 12, 2015, full-scale transactions begin. The photo is unrelated to the article. /Courtesy of Chosun DB

Korea Exchange (KRX) said on the 23rd that, starting on the 24th, investment trading companies, collective investment business operators, trust business operators, banks, insurers, and fund management entities will be able to conduct consignment trading of emissions allowances through brokerages. Individual investors, however, will be restricted from participating.

With this overhaul, convenience in transactions for entities wishing to trade allowances is expected to improve. In the past, individual market participants had to join the exchange as members to trade allowances, but going forward they can transact through brokerages without joining the exchange.

The consignment trading service will first be introduced through NH Investment & Securities. NH Investment & Securities was selected in Mar. 2024 by the Ministry of Climate, Energy and Environment as a pilot participant for emissions allowance brokerage.

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