The re-adoption of postpaid settlement system and the introduction of Delivery versus Payment mechanism have been the priority of our market to grow in line with international standards. As such MSE formed a working group with the Mongolian Securities Clearing House and other market participants in April 2017 to speed up the implementation of necessary changes in the market infrastructure. The working group has drafted 6 regulations necessary for transition to T+2 system and introduced it to the brokerage companies on May 02, 2018.

The highlights of these regulations are as follows:

• Elimination of pre-funding settlement system and shift to T+2 settlement system;

• “Mongolian Securities Clearing House” LLC will be responsible for clearing and settlement of primary and secondary market trading;

• Introduction of clearing membership; and

• Establishment of Settlement Guarantee Fund.

The feedback received from market participants for these draft regulations and proposed changes to the market was positive and we are working to send these regulations to FRC for approval.         

MONGOLIAN STOCK EXCHANGE