Altai Khangai has resigned as the CEO of the Mongolian Stock Exchange, based on the State Property Committee and the MSE Board of Directors’ acceptance of his intention of resignation by January 15, 2014.
He was appointed as the CEO of MSE in January 2011, and during the time of his service, he set the foundation of the initiative to create a world class capital market in Mongolia and reached the following milestones within the initiative:
1. MSE has played a significant role in drafting Mongolian Securities Markets Law which took effect on January 1, 2014. This law will help bring the actual benefits of capital market reform initiative and introduce international market standards. For instance, the law will create an environment to allow for the dual listing of Mongolian companies listed abroad as well as the listing of foreign-listed companies in Mongolia and help introduce new products and new services such as custodian services in the market.
2. To create a legal environment to establish institutional investor base, MSE participated actively in drafting the Investment Fund Law which entered into force on January 1, 2014. It will intensify the market development through promoting foreign indirect investments as well as increasing the participation of citizens in the market.
3. MSE has revised over 10 market rules and regulations in accordance with the newly adopted laws with collaboration of Financial Regulatory Commission.
4. He started the work of market reform in accordance with international standard, based on the Strategic Partnership Agreement concluded between the State Property Committee (SPC) and the London Stock Exchange Group (LSEG), and the Master Service Agreement concluded between SPC, LSEG and MSE in 2010 and 2011 respectively. Within the framework of the reforming the market infrastructure-one of the fundamental factors to effectively implement the revised Securities Law, the Millennium IT system was launched successfully on 2nd of July, 2012. The system has also provided brokers with opportunities such as remote trading.
5. Securities trading, clearing and settlement has shifted from prepaid system to international practice of T+3 rolling settlement system and new risk management mechanism has been introduced to the market with participation with other market participants. This is an indispensable move to attract international investors and remove impediments to participate in market, hence increasing liquidity of the Mongolian financial market.
6. MSE signed the “Cooperation Agreement for Introduction of Financial Index” with the UK’s FTSE group, a world-leader in the provision of global index and analytical solutions in 2013. Moreover, Mongolian capital market was placed on FTSE’s Watch List for possible promotion to Frontier market status. Having a Frontier market status within FTSE indices is an invaluable chance for Mongolian market to gain international recognition, to attract international qualified investors, improve the market activity and liquidity, speed up the market development and provide relatively cheap, long term financing to companies in rapidly growing sectors.
7. With the purpose of improving knowledge and skills of market professionals, which is one of the key factors to reach the goal of reform, 120 market professionals attended training of London Stock Exchange Academy. In addition, MSE has played a leading role in introducing and explaining the new market structure and technology to other market participants.
8. To improve market transparency and protect investors’ interests, MSE has been publishing registered companies’ financial statements, shareholders meeting announcements, statements and decisions in a timely manner. As a result of the effort, the number of companies that submitted their financial statements increased by 2.23 times from 97 to 217 in 2013 compared to the previous year.
9. During the years of his work, securities trading volume reached its highest historical record of 113.5 billion tugriks in 2011, 145.0 billion tugriks in 2012, and Mongolian capital market was considered as the highest performing market. However, because of various reasons such as more than 50 percent decrease in foreign investment, which makes up around 90 percent of total trading on MSE, and economic hardships in the country in 2012-2013, and recession in global economy and financial markets etc., 98.6 billion tugriks trading has taken place in 2013. Still, this was 60 percent higher than 2008 and 4 times higher than 2009, or years before the appointment of Chief Executive Officer Kh.Altai. We are confident that measures of the State to recover foreign investment will have a positive impact on future market performance.
10. MSE has also worked towards delivering market information to the public in a timely manner as well as improving public knowledge about capital market. Namely, in recent years 1,500 people participated in the training course to provide basic knowledge about securities market. We have organized 3 major investment summits, and organized investment road shows in 4 financial centres to more than 20 international investment funds, as well as meeting more than 600 other investors on the stock exchange promoting the market.
All the staff of MSE would like to wish success to our CEO Kh.Altai to his future endeavours, who worked with great effort to implement the goal of creating a world class market and successfully laid the foundation for its vibrant development.
SPC will be responsible for running the operation of the company’s executive management until the results of the competitive selection, which will be organized by SPC openly, is announced.
Public Relations Department
MONGOLIAN STOCK EXCHANGE