On December 5, 2014, Financial Regulatory Commission’s Securities Market Policy Committee has held a meeting.

Mongolian Government’s debt security (bond) has been started to trade at Mongolian Stock Exchange from November of 2014 and the council has discussed over some issues regarding to this, during the meeting.

Before November of 2014, the Government debt securities were only traded and auctioned at Central Bank, and the approved participants were commercial banks. If the individual or entity wants to buy the bond, the only choice was to make a request to commercial banks, and commercial banks were acting as intermediaries. 

11 Commercial banks were received the “Special license to act behalf of the clients, by their request, and provide investment activity and service” from Financial Regulatory Commissions, based on council for financial stability board’s guideline.

However, today the Government debt securities are regularly traded at Mongolian Stock Exchange, and it creates opportunity to the individuals and entities that interests to buy bond. They can participate government securities primary trading, furthermore secondary trade, by their brokerage companies assistance at stock exchange.

 

The Securities Market Policy Committee discussed an issue on activating government bond trading at the MSE and came to a common agreement that individuals and legal entities who are interested in investing in government bond purchases would execute them at the MSE through their brokers but not at the Mongol Bank through commercial banks.

 

However, the commercial banks, main participants of the Government bond purchases, can buy the securities by their own capitals but are restricted from acting as intermediaries and would advise the FRC on regulating this issue.

 

Public Relations Department

MONGOLIAN STOCK EXCHANGE