LSE seals deal to develop Mongolian Stock Exchange
07 April 2011 | 4384 views | 0
Source: London Stock Exchange
London Stock Exchange Group ("LSEG") and the Mongolian State Property Committee ("SPC") today announce that they have signed a Master Services Agreement ("MSA"), confirming their intention to modernise the Mongolian Stock Exchange ("MSE"), and agreeing details of how the partnership will be implemented.
LSEG Chief Executive Xavier Rolet met with Mongolian Prime Minister Sükhbaataryn Batbold at a signing ceremony in Ulan Bator today to confirm the agreement, which will see LSEG contributing to the modernisation of the MSE through the provision of technology, education and regulatory and capital markets expertise.
Sükhbaataryn Batbold, Prime Minister of Mongolia, said:
"I am delighted that we have been able to confirm this partnership.
"Mongolia's economic potential is recognised across the globe, and matched by our ambition to build a world class capital market at the centre of a modern, internationally focused economy.
"We believe that the London Stock Exchange Group is the best possible partner to support these ambitions, and look forward to a long term, mutually productive relationship."
Xavier Rolet, Chief Executive of LSEG, said:
"We are hugely proud to have been chosen to develop the MSE into an institution befitting Mongolia's growing importance on the world stage. We are strong believers in the benefits of an equity culture like that advocated by the Mongolian government, and are thrilled to participate in the construction of a high quality financial infrastructure which best facilitates that ideal.
"The project we've finalised today underlines the increasingly diverse, international nature of LSEG's business strategy, and will facilitate Mongolia's speedy integration into the global financial community."
Mr. D. Sugar, Chairman of the Mongolian State Property Committee, said:
"LSEG's diverse expertise will be invaluable as we continue to develop, modernise and privatise Mongolia's financial infrastructure. We are excited about the months ahead, and look forward to working together to implement this crucial project."
Under the agreement LSEG will collaborate with the SPC in a number of areas, including:
• LSEG will appoint a management team at the MSE to oversee its development and privatisation;
• LSEG's MillenniumIT, the leading global exchange technology provider, will provide trading, surveillance and post trading infrastructure to the MSE;
• Using the LSEG Academy, both parties will conduct a comprehensive training programme on capital markets infrastructure and legislative framework for MSE officers, clients and officers of the Mongolia Financial Regulatory Commission;
• LSEG will advise the MSE on the modernisation of market rules, procedures, structure and operation at the MSE;
• LSEG will provide assistance in the broadening of tradable asset classes at the MSE, to derivatives and ETFs; and
• LSEG will work to implement an international standard Mongolian market index.