MONGOLIAN ASSOCIATION OF SECURITIES DEALERS

Transcription

1 MONGOLIAN ASSOCIATION OF SECURITIES DEALERS Self-Regulatory Organization Presented by Jargal Ch., for the 12 th ASF Tokyo Round Table

2 Content Point 1 Point 2 Point 3 Point 4 Introduction Market Overview Main Challenges MASD Efforts 2

3 Introduction to MASD Established in 1995 as a NGO Became a SRO in 2015 Members: 46 (45 securities firms (25 underwriters) and 1 asset management company) Mission: To bring sustainable development to the capital market through establishing open, transparent market by setting ethical standards and protecting the rights of investors as well as members Full time staff: 3, based in Ulaanbaatar Board: 11 members, 3 independent members (elected from the GM) 3

4 Introduction to MASD Main regulations and rules complied: Securities Market Law 7 internal rules approved by the MASD GM and FRC: 1. Code of Ethics 2. Article 3. Membership Rule 4. Rule on management, structure and operations 5. Rule on prevention of prohibited actions on the securities market 6. Rule on monitoring members operations and settlement of disputes 7. Rule on organizing professional training, retraining and accreditation 4

5 Introduction to MASD 1800 Main source of funding: Membership fees Training fees /training rights since 2011, accreditation in brokerage, investment and trading) Data on training of professionals (yearly) Total Licenses in force as of 2016 Took part in training Passed the exam 5

6 Market Overview Main regulator: FRC, established in 1994, reports to the Parliament 2 exchanges: Mongolian Stock Exchange since 1991, fully state owned (on a privatization list), trading hours 10:00-13:00, MIT system, in 2012, current settlement system is T+1 Mongolian Securities Exchange, established in 2015, private ownership, no listing or trading yet Securities Central Depository and Clearing House was divided into 2 separate entities in April 2016 (both state owned): Securities Central Depository Securities Clearing Other: 62 securities firms, 12 investment management, 3 custodian banks, 4 settlement banks 6

7 Market Overview Economic slowdown in recent years, MNT depreciation, decreased FDI, Moody s downgrade to CAA1 stable Market cap in GDP (%) Q3 appx Market cap, bln MNT GDB, (2010 price), bln MNT Market cap in GDP (%) 0 7

8 Market Overview Securities Market Data Q2 MSE listed companies Market capitalization, billion MNT Stock trading Volume, billion MNT Number of stocks traded, million Bond trading Government retail bonds, billion MNT Corporate bonds, million MNT Government bonds secondary market trading, billion MNT MSE Top - 20 Index average highest lowest close Number of transactions, thousands Securities firms

9 Market Overview Stock trading had been decreasing, only 13% of total trading at the MSE in 2016 Q2 (retail Government bonds from Nov 2014) 9

10 Market Overview Current settlement system (T+1) 10

11 Main Challenges Capacity of MASD as a SRO (advocacy for policy change and training for member firms and professionals); Market infrastructure and process (adequate clearing system to eliminate counterparty risk, online services - opening accounts, trading platforms and easy transactions, etc.); Government support in terms of long-term policy, in particular: Development of institutional investors and capacity building of professional participants; Tax environment for the investors as well as issuers (to attract more investment and products); Privatization of state-owned enterprises through the MSE in an open and accessible manner for the public; De-regulation and meaningful investor rights protection 11

12 MASD Efforts Strengthening MASD as a SRO: collaborating and negotiating with the FRC on transfer of some rights and responsibilities such as accreditation of professionals, monitoring of member firms; promoting MASD among the market participants and taking part in policy development whenever possible; Promoting the securities market among the public through organizing conferences, workshops and training. E.g. One goal Collective solution open discussion in Oct 2016; Initiated signing of MoU by the market participants (exchanges, central depository and clearing house) in order to promote collaboration and foster sound market development. 12

13 MASD Efforts One goal Collective solution open discussion in Oct 2016 at the Parliament House 13

14 MASD Efforts MoU between the market participants (exchanges, central depository and clearing house) 14

15 MASD Efforts MoU with the JSDA on 21 st Nov 2016, at the ASF, Manila, Philippines 15

16 Thank you for you attention! Presented by Jargal Chuluuntulga Board Member Mongolian Association of Securities Dealers (Self-Regulatory Organization) Phone: +(976) Picture 16