Capital Markets

For the Mongolian Stock Exchange (MSE), 2013 was a year of transition. While performance remained weak and trading was exceedingly thin, preparations were being made for a comeback. The hope is that the foundation has been set to make 2014 a year of recovery for the market. Under previous legislation custodian banking was not available; however, under a new law, international investors will not have to worry about the risks associated with investing in a market with no intermediary banking institutions. Despite having 79 registered brokers, only one firm oversees almost all trading on the MSE. In addition, risk management has not been well-developed and understanding of stocks is low among the general public. What is now needed most is for new issues to come to the market, and this will depend on the ability of the regulators to put new laws into practice. This chapter contains an interview with Masa Igata, Founder & CEO, Frontier Securities.