In the first 5 months of 2018, securities worth MNT 65 billion were traded, of which MNT 25 billion were secondary market trading for securities trading.

Average brokerage fee of domestic securities companies is 1-2 percent. However, brokerage fee can be changed depending on trading value. The Mongolian Stock Exchange receives a fee based on the trading value of the securities traded. For instance, MSE charges 0.4 percent fee from trading value of MNT 100 million, 0.38 percent from MNT 100 million to MNT 1 billion, and 0.15 percent from MNT 30 billion. The downsizing of MSE's fees may reduce fees of securities companies. In the secondary market, the seller of government and local bonds is free of charges and the buyer's fee is accounted for 0.00875 percent.

Block trading worth MNT 5.9 billion has been held on MSE since the beginning of the year. For example, block trading of "Mongolian Telecom", "LendMN" and "Darkhan Nekhii" companies' shares held on MSE. Also, "APU" JSC's 1.1 million shares traded at MNT 671 or MNT 720 million. Last week's closing price of "APU" JSC was at MNT 600. In other words, the advantages of a block trading is that the third party is not able to participate in trading. Stocks can also be traded up or down by more than 15 percent of the share price. However, the block trading does not affect the stock price.

In terms of fees and charges, there is no difference in the block trading of stocks in the secondary market. There was a time when block trading charge accounted for MNT 2.5 million. However, in December 2017, the Mongolian Stock Exchange's regulatory commission started not receiving any additional fees.

Source: BLoombergTv.mn