Source: http://economy.news.mn/content/11200.shtml    Date: May 14, 2010

Several new procedures have been incorporated in the rules of business of the Mongolian Stock Exchange to safeguard investors’ interest, according to Mr. E. Ganbat, Head of its Securities Department. At present, investors access their money only through brokers, but from this month, all payment will be directly made by the Securities Clearing House and Central Depository Company (SCHCDC) to investors’ bank accounts.

Brokers with weak financial capacities have been temporarily divested of their authority to act as proxy. The risk fund of brokers is to be placed at SHCCDC, instead of with a bank. The fund will no longer be 100% in cash, and will include liquid stocks. Arrangements will also be made so that a bank gets the client to approve any proposed transaction before it is finally made.