The re-adoption of T+2/3 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 member brokerage companies. On May 11th, 2018, these draft regulations were sent to FRC for approval. 

Upon the approval, these regulations will implement the changes of eliminating the pre-funding settlement system and switching to T+2 settlement system, transferring the obligations of clearing and settlement of both primary and secondary market trading to "Mongolian Securities Clearing House” LLC, introducing clearing membership as well as establishing the Settlement Guarantee Fund, and consequentially, it would help to attract international institutional investors to the Mongolian capital market and to be designated as an eligible Frontier market. 

MONGOLIAN STOCK EXCHANGE