Interactive guide - Participating in the MSE

How to participate
in trading?

Capital market is a market where long-term securities and financial instruments with a maturity of 1 year or longer are traded. Capital market allows to transfer available funds in the economy to the investment resources through the issuance and trading of variety of securities.

A primary market transaction is when the issuer sells its securities by way of public offer for the first time, and buying of Government securities, corporate bonds and stocks that are trading through the Mongolian Stock Exchange on the primary market is regulated by the following principles.

What is a T+ securities settlement system?

There are two important dates when executing your orders: the (transaction date) and the (settlement date).

Securities settlements are usually executed on the 3rd day after the transaction date.

For example:

T + 0

It means that the settlement will be executed on “T” day or on the same day as transaction date.

T + 1

It means that the settlement will be executed in 1 day after the transaction date.

T + 2

It means that the settlement will be executed in 2 days after the transaction date.

T + 3

It means that the settlement will be executed in 3 days after the transaction date.

The settlement of the security you bought or sold will be executed after T+ working days. So, if you sell a security, it will be transferred to the buying side and your money will be placed to your securities settlement account in the clearing bank after T+ working days.

If you buy a security, it will be placed into your brokerage account and the payment will be withdrawn from your securities settlement account in the clearing bank after T+ working days.

The T+ or the number of days of securities settlement execution is regulated by the instructions and procedures of the Financial Regulatory Commission of Mongolia and the Mongolian Stock Exchange. Currently, the securities settlement is executed by T+1 settlement system.

You will have 4 accounts opened to participate in securities trading:

№	Organization where you have an account opened	Account	Who can open the account?	Asset to save	Account usage	Cash deposits into the account	Make expense transaction from the account
1	Securities Company	Securities account	You should come in person to the Company office to open the account (Opens instantly)	Securities	To participate in securities trading To store your securities	No cash transfers are available	No cash transfers are available
2	Clearing bank for securities settlement	Joint settlement account for security trading	You should come in person to the Company office to open the account (Opens instantly)	Cash assets	To execute securities settlements in the secondary market	To deposit cash in order to buy securities in the secondary market The cash will be placed into the account if you sold securities.	To receive your cash in any of your bank accounts by sending online money request application. Also proving a money request application by visiting to the Company office is available.
3	Mongolian Central Securities Depository	Depository account	The securities company opens the account for you (opens in 1-2 working days)	Securities Dividend Payment from liquidated assets	Central securities registration	To receive dividend payments if the JSC decided to distribute it through the Mongolian Central Securities Depository To receive payments from the liquidation of the JSC.	To make expense transactions by visiting to the Company office and providing a money request application.
4	Mongolian Securities Clearing House	Securities settlement account	The securities company opens the account for you (opens in 1-2 working days)	Cash assets	To execute securities settlements in the primary market	To deposit cash in order to buy securities in the primary market To receive coupon payments due and bond principal at maturity	To make expense transactions by visiting to the Company office and providing a money request application.

How to participate in trading?

You can buy securities and participate in trading by taking following simple steps.

Choosing a securities company 01

Opening an account 02

Choosing a security to invest in 03

Depositing cash to buy a security 04

Making trading orders 05

Continue

Choosing your securities company

There are several rules, instructions, obligations and responsibilities to follow in order to mitigate risks while performing in the securities market. So, you are required to perform activities in the securities market through licensed securities companies.

You must be aware of the following while choosing your securities company:

Services

Professional and qualified services
Open possibilities to participate in trading simply without any time latency
Reliable and sustainable operations
Ability to take risks, good results of financial ratios
Known and reputable

Personnel

Professional and skilled personnel
High ethical responsibilities

Additional service

Provides all the necessary, accurate and objective information on regular basis
Ability to innovate and offer new advanced products and services
Uses and provides advanced software and services

Service fee

Flexible fees and charges
The trading fee of the securities company consists of fees of the Financial Regulatory Commission, the Mongolian Stock Exchange and the Mongolia Securities Clearing House.

Opening a securities account

You need to come in person and bring the following documents at the securities company that you chose to have your account opened.

Click here to send your request
to open an account.

Send request

For individual

Identification document if you are a citizen of Mongolia;
Passport for foreign individual and residence card if you are a citizen of a foreign country;
Represent yourself by your legal trustee if you are not able to visit to the Company office

For junior

Child’s birth certificate
Identification document if the child is above the age of 16
Document that confirms the Child Representative/identification card of the Child Representative/

For legal entity

For legal entity registered in Mongolia

For legal entity registered in Mongolia
Данс нээлгэхийг хүссэн албан бичиг /ҮЦТХТ, АТТ, ХХБ, Ти Ди Би Капитал ҮЦК-д хаягласан /	1 copy each
Account Application Form/by the approved form of the company/	2 copies
Certified true copy of State Registration Certificate issued /to be notarized, and for foreign investment company shall be made “Foreign Investment JSC and LLC”/	2 copies
Certified True Copy of Corporate Charter registered in the State Registration Authority /to be notarized/	2 copies
Company`s Board Resolution (in its absence, the Shareholder`s meeting resolution) designating an Authorized Company Representative who can sign on behalf of the company /original copy/	2 copies
Authorized Company Representative`s authorized signature /to be notarized and stamped/	4 copies
Authorized Company Representative`s Identification document	4 copies

For foreign legal entity

For foreign legal entity not registered in Mongolia
Данс нээлгэхийг хүссэн албан бичиг /ҮЦТХТ, АТТ, ХХБ, Ти Ди Би Капитал ҮЦК-д хаягласан /	1 copy each
Account Application Form/by the approved form of the company/	2 copies
Certified True Copy of Company Certificate issued by its jurisdiction /to be translated into English and Mongolian language and notarized by its jurisdiction/	2 copies
Certified True Copy of Corporate Charter/ to be translated into Mongolian language/	2 copies
Company`s Board Resolution (in its absence, the Shareholder`s meeting resolution) designating an Authorized Company Representative who can sign on behalf of the company / Original copy – if not in English language, to be notarized and translated to English and Mongolian language/	2 copies
Authorized Company Representative`s authorized signature /to be notarized and stamped/	4 copies
Authorized Company Representative`s Identification document	-
Detailed inquiry from a state registration institution of registered country	2 copies
Official letter or resolution that gives authority to the company to report information about the legal entity to the Mongolian tax authority, signed by authorized representative	2 copies
If 10% or more of the legal entity is owned by US citizens or legal entities, each application form №067 filled by US citizens or legal entities, and their identification must be authorized by either a counsel of Mongolia in the foreign country or certified by the apostille	2 copies

What you should pay attention to while investing? Investors claim to earn the highest return with the lowest risk. So, be aware of the following when you buy securities.

Calculate your investment amount and determine your investment ability

Determine your
investment
goals

Have your own
trading strategies

Learn,
develop

The securities markets have high rate of risks, so use your free assets, not loans or other related assets.

Determine your investment goals: Will you make sustainable long-term investments or earn on spread of short-term securities?

Participate in trading based on your own researches and analyses and information you collected.

Have your own evaluations and conclusions and be sensitive to the market;
Have an understanding of fundamental and technical analyses;
Always extend your knowledge of the capital market;

Choose security type to invest in

Difference between stocks and bonds

	Stock	Bond
Securities issuer	Joint stock companies	Government Aimag, capital city, mayor's office Financial institution Companies
By buying securities	Become a shareholder of the company	Become a credtor of the company
Yield	Dividend Share price gain/loss	Interest income Bond price gain/loss
Risk	High risk	Relatively low risk
Maturity	No repayment conditions Valid for the whole existence period of the company	Repayment after a specified period of time Valid for the period of bond issuance
In case of insolvency	Right to assets of the company after its liquidation	In case of insolvency of the issuer, payment will be compensated from bond collateral.

01

Primary
market
trading

You are able to buy publicly offering Government securities, initial public offering and follow-on public offers of stocks and corporate bonds in the primary market through the Mongolian Stock Exchange. You need to deposit your payment into your 12-digit number account at the Mongolian Securities Clearing House.

How to deposit your money

Account number:	0071.....
Beneficiary's bank:	Mongolian Securities Clearing House
Beneficiary's name:	Client surname, name
Transfer amount:	Security price + brokerage fee

Mongolian Securities Clearing House

02

Secondary
market
trading

You need to deposit your money into joint settlement account for security trading at the clearing bank in order to buy Government securities, stocks and corporate bonds of the joint stock companies listed on the Mongolian Stock Exchange.

How to deposit your money

Account number:	4.....
Beneficiary's bank:	Trade and Development Bank of Mongolia
Beneficiary's name:	Client surname, name
Transfer amount:	Security price + brokerage fee

Clearing bank
for securities settlement

Trade order in person

You are able to make trading orders by coming in person to our company and get news and reports about securities that interest you from our broker.

Online trade order

You are able to place online orders directly through our website www.tdbsecurities.mn and“TDB ONLINE” phone application if you have internet trading service. Your order will be placed directly to the order book of the Mongolian Stock Exchange without any time latency.

Trade order by phone

You are able to make orders using phone if you do not have ability to come in person or place online orders. Please notice that, if you choose this service, you need to come in person to our company and sign your signature on the subscription agreement in three working days.

Good luck

{{headers[selectedLogin]}}