The Korea Exchange (KRX)’s headquarters building in Seoul. (Yonhap)
SEOUL, May 12 (Korea Bizwire) — South Korea’s bourse operator is weighing the option of launching a futures market for carbon emissions, officials said Thursday.
The Korea Exchange (KRX) and the country’s environment ministry opened a bidding for the feasibility study of a carbon emission futures market early this month, according to the KRX officials related to the matter.
In 2015, the country launched the spot market for trading emission rights.
“Spot trading of emission rights has been growing, but it still faces difficulty in drawing enough liquidity and thus making prices stable,” a KRX official said.
The futures market for carbon emission rights may help the country’s efforts to reduce emissions, he said.
Late last year, 20 brokerage houses were allowed to trade emission rights to invigorate the market and boost liquidity.
(Yonhap)
