As regards the second issue being the Cap-and-Trade Financial Services for Auction and Reserve Sale the extent of the contractor obligations is following:
1. Auction/Reserve Sale Preparation Services. Prepare auction and reserve sale processes.
2. Pre-Auction/Reserve Sale Services. Financial Qualification Application Processing: Conduct the financial qualification process for approved auction or reserve sale participants, including assessing validity of collateral.
− Conduct administration and acceptance of financial guarantee instruments for potential participants in the auction and reserve sales.
3. Post Auction/Reserve Sale Services. Financial Settlement: Invoice purchasers of reserve sale GHG allowances per instructions from ARB or an entity designated by ARB to serve as reserve sale operator.
− Conduct financial settlement for quarterly auctions and reserve sales, including coordinating with designated auction and reserve sale operator.
− Provide payment or financial settlement confirmation to ARB and an entity designated by ARB to serve as auction and reserve sale operator to enable transfer of GHG allowance ownership and updating of market tracking operation records.
4. Post Auction/Reserve Sale Services. Processing Distribution of Proceeds: Process post-auction/reserve sale payments for awarded GHG allowances, per instructions from ARB and an entity designated by ARB to serve as auction and reserve sale operator.
− Process auction and reserve sale proceeds.
5. Post Auction/Reserve Sale Services. Return Financial Assurance Payments: Process return financial guarantee deposits to successful and unsuccessful bidders as instructed by the ARB or an entity designated by ARB to serve as auction and reserve sale operator.
− Manage financial records associated with the quarterly auctions and reserve sales in a highly secure and confidential manner.
6. Prepare a System Security Plan. Prepare a System Security Plan describing the security approach for all proposed services and ensure compliance with the security processes, practices and requirements in the State of California.
The details for both above-mentioned scopes and requirements for participation can be found at http://www.arb.ca.gov/cc/capandtrade/capandtrade.htm.