Source: Onoodor                       Date: 12 August, 2010

A consortium comprising Mosdaq of Mongolia and NASDAQ OMX, the world’s largest exchange company with trading, technology and public company service capability spanning 6 continents, is among those bidding to be chosen to manage and coordinate the work of the proposed Mongolian Stock Exchange joint venture. The Government expects the JV to substantially increase both the volume and worth of stocks traded at the exchange, to raise total market capitalization to 46% of GDP, and to ensure that at least 10% of all capital investment in Mongolia is channeled through the stock exchange.

Following submission of tender material to the State Property Committee, two representatives of the consortium – Mr. Ulf Carlsson, General Manager, NASDAQ OMX North Asia & Japan, and Mr. J. Erdenebat of Mosdaq – answered media questions earlier in the week.  Asked if it is reasonable to expect the joint venture to perform as an international exchange without corresponding changes in the country’s economic scene and  legal environment, Mr. Carlsson conceded that big investors usually do not favor financial markets in developing countries with a small economy, but the consortium was confident that use of state-of-the-art technology will change that mindset, as long as Mongolia followed international norms in implementing laws, setting up a stable tax network, and conducting corporate business in a transparent way.

The Government wants the selected company to provide the funds for the entire program and has not specified how it will be allowed to recoup its investment. Mr. Erdenebat declined to go into details, but indicated they would be interested in shares of the Mongolian Stock Exchange when it becomes a joint venture.