London Stock Exchange Group (LSEG) and the Mongolian State Property Committee (SPC) have signed an exclusive strategic partnership agreement to restructure and develop the Mongolian Stock Exchange (MSE).
Under the agreement, LSEG will appoint a management team at the MSE to oversee its development and privatization. LSEG's Millennium IT, a global exchange technology provider, will provide trading and surveillance infrastructure to the MSE.
Using the LSEG Academy, both parties will conduct a training program on capital markets infrastructure and legislative framework for MSE officers, clients and officers of the Mongolia Financial Regulatory Commission.
LSEG will provide assistance in the broadening of tradable asset classes at the MSE, to derivatives and ETFs; and LSEG will also work to implement an international standard Mongolian market index.
Mongolian GDP is expected to triple to $23bn by 2013 on the back of demand for its mineral resources. The stock exchange more than doubled in value last year even though opening hours are limited.
A number of companies quoted in London have interests in Mongolia. Central Asia Metals joined AIM (Alternative Investment Market) at the end of September 2010. It has copper, gold and molybdenum mining assets in Kazakhstan and Mongolia. AIM-quoted investment company Origo Partners has as number of investments in Mongolia mining projects.
AIM-quoted oil and gas explorer Petro Matad has three production sharing contracts in Mongolia and is capitalized at more than £210m.
At the MSE are working some 340 brokers and national specialists from 48 professional organizations, who have rights to run stock exchange trade and services. Since 1990, 474 joint stock companies have been registered at the MSE. They have traded 738.3 million shares with MNT 262.5 billion, and 3.1 million bonds with MNT 215.1 billion. With MNT 477.6 billion, 3,873 trades have been held as well.
For the time being, the MSE has registered 448,717 domestic and foreign share holders, investors and entities. They have been granted dividends of MNT 109.6 billion.
- HUMNEWS Staff, (sources: London Stock Exchange, Mongolian State Property Committee)