London Stock Exchange to Help Restructure Mongolia's Stock Exchange, TradingMarkets.com
ULAN BATOR, Jan 18, 2011 (Xinhua via COMTEX) --
The London Stock Exchange (LSE) and Mongolian State Property Committee (MSPC) announced Tuesday they had signed an exclusive Strategic Partnership Agreement to restructure the Mongolian Stock Exchange (MSE).
"We are thrilled to have been chosen to partner with the Mongolian Stock Exchange as it enters a new and exciting period in its development," LSE Chief Executive Xavier Rolet said.
"Mongolia is predicted to become one of the world's fastest growing economies and we are delighted to be providing our extensive expertise and assistance at this critical time," Rolet said in a press release issued here by the committee, which supervises the MSE.
"The London Stock Exchange Group is very much looking forward to working with business, government and the people of Mongolia in the growth and privatization of its significant capital markets," Rolet said.
MSPC chairman Sugar Dulam said Mongolia was very excited to have LSE as a partner in the modernization and development of the MSE.
"Its global and technological expertise will be invaluable to the creation of new capital markets infrastructure worthy of Mongolia's increasing significance on the world stage," Dulam said.
Under the agreement, LSE will appoint a management team for the MSE to oversee its development and privatization and provide trading and surveillance infrastructure and a comprehensive training program on capital markets infrastructure and the legislative framework for Mongolia's stock exchange clients and operation and regulatory officers.
Last May, the Mongolian Government announced it would restructure the country's stock exchange and improve its efficiency through international privatization, which has seen the participation of 12 international bidders, including Korean Stock Exchange, NASDAQ OMX, and LSE.
However, in late September, MSPC said it would cancel the bidding process as some bidders did not meet requirements and objectives set by the Mongolian side.
MSE opened in 1991 to trade shares of local companies. The Mongolian government hoped to develop the stock market in Mongolia and raise funds for its mining sector.
According to Mongolian law, mining companies holding a license for a mineral deposit of strategic importance must sell at least 10 percent of its shares through the MSE.