Performance of brokerage companies plays major role in improving daily trading turnover and liquidity of stock exchange. Even though brokerage companies of Mongolian stock exchange have double duties for broker and dealer, activity of brokerage companies mainly limited by implementing buy and sell order of its clients.
Thereupon investors face problems with buying and selling their shares at any time they want, and it has a negative impact on market liquidity. Therefore, Mongolian Stock Exchange is preparing to introduce international capital market structure of “Market Makers” from 16 February 2015. Market makers will make buy and sell order for government securities, and it will increase liquidity of securities in the primary and secondary market. Mongolian capital market trading activity and participation of investors are expected to increase due to increasing buy and sell order from investors on a daily basis.
Introduction of market makers structure will be available in shares and derivatives market in the future.