Koscom built a relay management system in step with the introduction of a consignment trading regime for the carbon emissions market.
Koscom said on the 25th that it developed a relay management system to support the consignment trading regime in cooperation with the Ministry of Environment's Greenhouse Gas Inventory and Research Center (GIR) and the Korea Exchange (KRX), among other related agencies, and began service the day before.
The system was built to reflect revisions to the government's Emissions Trading Act that took effect in Feb. this year. Previously, only emitting companies or institutions holding exchange membership could directly access the KRX system to conduct transactions, limiting market participants.
With the introduction of this relay management system, financial institutions can conduct emissions allowance transactions through a consignment trading method via securities firms. The first participating company is NH Investment & Securities.
Koscom built infrastructure including servers, networks and dedicated lines to support consignment trading and provided it to the GIR, then aggregated, verified and processed transaction data to implement a relay function linking related institutions such as securities firms, the Emissions Trading Registry (ETRS) and the Offset Registry (ORS). It also secured technical stability for the introduction of the consignment trading framework by conducting mock tests with the GIR, the Korea Exchange (KRX) and NH Investment & Securities for two months starting in Aug.
Jeong Gi-woo, head of Koscom's financial business division, said, "Koscom finds it meaningful to take on the core infrastructure role to broaden the base of transactions in the carbon emissions market," adding, "Through the provision of a stable relay management system, we will enhance trading convenience and reliability and contribute to revitalizing Korea's carbon finance ecosystem."