A significant milestone was reached yesterday under the strategic partnership between the London Stock Exchange, the State Property Committee and the Mongolian Stock Exchange. The MSE carried out a soft launch of its new Trading, Clearing Settlement and Depository and Surveillance systems and the securities were successfully traded on the new system for the second day.
     The new system was introduced in accordance with the new market regulations which are aligned to international standards. The new market regulations require certain requirements to be met by market participants. For example, the clearing banks settle the trades under the new rules, thus the brokers and clearing banks need to sign an agreement; the brokers need to contribute to the Settlement Guarantee Fund by an amount determined based on their average trading volume in order to protect the market from settlement risks.
      Currently there are five Brokers that comply with the new requirements and participate in the trades and due to this small number of firms participating in the trade the trading volume is relatively low. Brokers continue to work actively with their clearing Banks to reach an agreement and to satisfy the requirements.  32 brokers have contributed to the Settlement Guarantee Fund indicating that there is keen interest in the market. The other requirements are being met by more and more brokers each day, thus we are confident that more and more participants will be added on in the next few days and the temporary transitional situation with low trading volumes will soon clear.