Chairman of the Financial Regulatory Commission S.Davaasuren, Deputy Chairman D.Bayarsaikhan, Commissioner L.Enkhtaivan and other related executives met with state owned “Mongolian Stock Exchange” stock company, and state owned “Commercial Settlement clearing house” and “Central Securities Depository” LLC.
The “Mongolian Stock Exchange” was first established in 1991 and the settlement unit was changed to “Securities Clearing House and Central Depository” LLC by the government decision in 2003.
Furthermore, “Securities Clearing House and Central Depository ” was approved by the Government as a separated entities ” Central Securities Depository ” LLC and “Commercial Settlement clearing house” LLC in 2016.
The MSE introduced Millennium IT system since July 2012. The main activities of “Central Securities Depository “, and “Commercial Settlement clearing house” , reports and information, core services are conducted through the E-Clearing House system. The system information is not directly linked to the Millennium IT system. Systems demands for manual operation, and transferring information across systems manual is a problem.
The MSE listed in the list of observations in 2013, to qualify for the ‘developing market’ rating of the international capital market index, by the FTSE. Since its inception, the company has not yet made significant progress in converting commercial settlements into T+ mode, and it may become delist from the above list which says Mr.KH Altai Executive Director of MSE.
For further companies management executives says that, it is critical need for introducing the DvP principle into the commercial settlement system of the capital market, and payment method must shift to T+2 model, and the current system of pre-payments (prefunding) method should be eliminated and emphasize the need to simplify transactions and execution. In order to do so, member Broker companies are required to comply with the rules and regulations of the FRC, to update and harmonize the rules and regulations that are being regulated.
The management of the company analyzed and integrated the market conditions, the development trends, the organization’s vision and the implementation of previous decisions, and their policy coordination. A drafted detailed plan should be developed. Also, “MCSD” will set up a working group to organize the accumulation of dividends.