MSE'S SPECIAL LICENSE GRANTED

Ulaanbaatar, /MONTSAME/ The Financial Regulatory Committee issued a resolution which granted three-year's extension of a special license to the MSE for running securities trading at the securities market on January 27, 2010. The resolution has obliged the MSE to protect general interests of investors and customers and to implement its duties imposed by laws.
Mongolian Stock Exchange is the major player in the financial and securities market of the country as well as the major contributor to the economy of Mongolia. During the transitional period of central planned economy to market economy in Mongolia, many social and economic changes were made. One of those changes was the establishment of stock market in the country. On 18 January 1991 the Government of Mongolia established Mongolian Stock Exchange with intention to implement its Privatization Policy. Thus, 96.1 million shares worth of 8.2 billion tugrugs (7.0 million US$) of 475 state owned entities were successfully traded through Mongolian Stock Exchange during 1992-1995.
Auctions officially began on 7 February 1992; shares in three companies were auctioned off during the first day of auction trading. The first day's turnover was 16,000 shares, valued at 15,000 US$; that grew by over twelve times to 200,000 shares in March. Trading hours were restricted to two hours on one day per week, expanding to two days of five hours trading sessions per week in July.
Passing the Securities and Exchange law in 1994, Corporate Law in 1995 resulted in establishment of secondary market and 29 broker firms, which operated and financed by MSE - were privatized.
With the start of secondary market activity, shares of over 38.8 billion tugrugs (32.1 million US$) have been traded in 1996-2004. The government bond trading in 2000, corporate bond trading were introduced in 2001 to date government bonds worth of 117.9 billion tugrugs (97.5 million US$), and corporate bonds worth of 9.9 billion tugrugs (8.2 million US$) have been traded.
Revision to the securities and exchange law adopted by the Parliament in December 2002, transformed MSE to 100 per cent state owned company that is allowed to carry and engage in any business activities within the Mongolian jurisdiction.
During recent years Mongolian Stock Exchange's International relations have expanded rapidly. Today MSE has formal connections with over 10 Exchanges, signed on MOU with 7 stock exchanges, became an active member of Federation of Euro-Asian Stock Exchanges (FEAS) and Asia Oceania Stock Exchanges Federation (AOSEF) and distributing its data worldwide via Bloomberg Professional Services.
S.Batbayar
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