1. Reason for the Revision

It is necessary to delete the provisions related to cancellation of the designation of market makers, which were legislated upward by the Act on the Allocation and Trading of Greenhouse-Gas Emission Permits and its Enforcement Decree, and to stipulate the procedures for the cancellation of such designation delegated to the Notice. In addition, to activate the emission permits trading market, it is necessary to establish a system for adjusting the obligations of market makers to ensure they submit appropriate bids and to evaluate their proactivity. As such, the revision aims to induce the active creation of the emission permits trading market by distinguishing the settlement periods and alleviating market volatility during the settlement period, and by granting points for those that cooperate with the policy during the entire period and increasing the available incentives for so doing.

2. Main Contents

a. The revision deletes the provisions related to cancellation of the designation of market makers, which were legislated upward, and establishes procedures for the cancellation of designation (Article 8 of the draft).

b. The revision establishes procedures for handling emission permits held when the designation of market makers is cancelled (Article 8-2 of the draft).

c. The revision changes the evaluation criteria concerning the market makers’ performance of their obligations, newly centering them on bids (Subparagraph 1 (b), Subparagraph 2 (b), and Subparagraph 3 (c) of the attached Table 2 of the draft).

- Evaluation of the same items by period, now divided into general period, settlement period (June to August), and market volatility expansion period.

d. The revision establishes the emission permits submission period (settlement period) to promote stable operation of the market during the settlement period (Subparagraph 2 (a) of the attached Table 2 of the draft).

e. The revision establishes the items for evaluating proactiveness by supplementing the existing points-based system in order to induce the proactive activities of market makers (Subparagraph 1 (c), Subparagraph 2 (c), and Subparagraph 3 (d) of attached Table 2 of the draft).