FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
MONGOLIAN STOCK EXCHANGE
2009 shall be the year of success,
innovation and the year of development.
Rentson Sodkhuu
Chairman and CEO
I would like to express my warm greetings to all
of you on the 18th anniversary of the securities
market and Mongolian Stock Exchange and
wish all the best in the coming new year of
2009.
The securities market and the securities
industry are the new phenomenon that were
first introduced together with democratic
transition in the country, has demonstrated
successful performance during the recent years
and continues its way ahead to meet the global
standards. The year of rat has brought many
important achievements and sucess to the
securities industry. In 2008 securities trading
value reached 62.3 bln MNT where 54.5%
completed in the primary market. Market
capitalization was 515.9 bln MNT that
represented some 7.9% of GDP.
During the past year public awareness and
involvement in the securities market increased
rapidly where legal business entities raised
HISTORY AND DEVELOPMENT
1991 January 18 MSE established according
to the Government decree No 22.
May 22 Privatization law enacted.
1992 February 07 Primary market trading
started.
1994 September 26 Securities law enacted.
November 14 Mongolian Securities
Commission established.
1995 July 01 Privatization of securities
companies has started.
July 31 Securities Dealers and Brokers
Association founded.
August 28 Secondary market trading started.
1996 October 25 The first trading day of the
Government bond.
1998 February 11 Off-exchange trading
started.
October 01 The MSE joined as a full-member
in Federation of Euro-Asian Stock Exchange.
November 01 The MSE has started to calculate
composite price index.
2000 January 21 The first Securities Company
with foreign investment registered as a member
of the MSE.
2001 January 08 The monthly magazine of the
MSE “Security and Trading” published.
under the name of “Development +
Investment”.
PAGE 98
necessary capital successfully via the
exchange. In 2008 the total dividend distribution
reached 17.4 bln MNT which is some 3.5 times
increase compared to the previous year.
During recent years MSE fully developed its
Internatinal ties with foreign exchanges. As of
today we have formal ties with over 10 foreign
exchanges and counter-parts and become an
active member of two international federations:
The Federation of Euro-Asian Stock
Exchanges(FEAS) and Asia Oceanian Stock
Exchanges Federation (AOSEF). In 2008
Mongolian Stock Exchange started to distribute
it’s trading data worldwide via Bloomberg
Professional services network.
2009 shall be the year of success, innovation
and the year of development. Mongolian people
shall use our country’s natural resources in
order to build and stabilize the national
economy and to increase the GDP level by
accessing the domestic and foreign capital via
January 18 10th anniversary of the MSE.
June 08 Corporate bond trading started.
2002 July 05 Top value of a stock trading
amounted to MNT 376,77 million.
2003 March 26 MSE was divided two
independent organizations: “Mongolian Stock
Exchange” “Securities Clearing House and
Central Depository”
March 26 MSE was reorganized as a profit
making state owned Shareholding Company.
2004 October 29 First time the special license
has been issued to an Underwriting
Company on security market
November 01 “Training center” of capital
market established.
2006 January 18 Celebrated 15th anniversary
of MSE
2007 January 4 FRC Announces 2007 as a
“Financial Market Development Year”
September 4 Top 20 Index reached over 13000
and åarket capitalization reached over 620
billion MNT
December 27 Trading value of MSE has
reached over 100 bln MNT
2008 January 18 17th Anniversary of MSE.
Signed LOI with KRX for Implementation of the
joint project
March 05 Signed Data Distribution Agreement
with Bloomberg
both domestic and international securities
market to raise capital for future national scale
corporations.
The finanicial crisis that resulted from
consequences of greed and private
possessions of some and that has weakend the
world ecnomony is standing infront of our
doorways. This is the time for national
professionals like us to stood firm and fight with
this crisis by contributing our knowledge and
skills to the country and its economy.
It is my firm believe that this year shall become
a year of common contribution and common
wealth that focused to overcome this crisis by
implementing such measures as: economic
development based on the natural resources,
empowered national currency; monitored
inflation level and economic system with
diversified sectors.
May Mongolia become a prosperious and
developed nation!
April 10 Joined Asia Ocenian Stock Exchanges
Federation (AOSEF) in Kuala Lumpur, Malaysia
September 18 Open day event to Promote
capital market was organized at Sukhbaatar
Square, UB
FUTURE OUTLOOK
1. To reform and re-draft MSE rules and
regulations, to assist or help implementing
reform of the current capital market legal
environment,
2. To implement measures that decreases the
impact of the global financial crisis on the
domestic market and to overcome the crisis
with minimum possible loss,
3. To take measures and implement activities
that enhances core operations of MSE,
4. To enhance information disclosure and
transparency, implement the National Codex of
Corporate Governance, increase investor
education awareness and intensify activities
that increases investor confidence to the capital
market; and
5. To assist and influence in the reorganization
process of MSE's ownership status.