Cross border securities service launches

2018-08-15 14:31:21
Ulaanbaatar /MONTSAME/ On August 14, the Mongolian Central Securities Depository (MCSD) state owned company and Korea Securities Depository signed an agreement to start cooperation on cross border securities service.

CEO of the MCSD Sh.Lkhagva noted that the parties signed a memorandum of cooperation in 2017. “This time, enhancing our cooperation we aim to give opportunity to Mongolian and Korean investors to buy stocks and bonds of the two countries. Thus, the Mongolian companies will be able to issue IPO at domestic and Korean stock exchanges and vice versa. This will be a big boost to domestic companies that issue IPO and give positive impact on their reputations. The MCSD has concluded a number of cooperation agreements with foreign entities before, but this is the first agreement that approves cross border trade,” said Mr. Sh.Lkhagva.

The MCSD will also cooperate with the Korea Securities Depository on introduction of new products and services targeted to international market including the Depository Receipt.

Ambassador of Korea to Mongolia Jeong Jae Nam attended the event making remarks “In 2011, our two countries have signed the Comprehensive Partnership Agreement. We are working to develop mutually beneficial relations within the agreement. I am delighted that the economic and financial cooperation is expanding with the strengthening of bilateral relation."

The Government of Korea has implemented a number of projects on deposit insurance system and dissemination of macroeconomic information. The projects implemented by the Korean settlement and deposit center between 2017 and 2018 include the advisory services to the MCSD and development of capital market infrastructure. 

After the agreement signing ceremony, presentations were made to equity market participants to introduce activities including cross-border securities registration, foreign investment, fundraising at foreign markets and their legal regulations.