The Ulaanbaatar Securities Exchange implements the market efficiency diminishing operating and inefficient transaction costs as a consequence of clearance for the transactions occurring during the trading through the clearing members and conducting risk management while managing post trade clearing and settlement procedures within the license of clearing operation in stock market. Additionally, we have advantages of providing financial market sustainability, preventing systematic risk, and reducing default risk throughout margin and collateral funds.
We operate using internationally adopted common methodologies, two-tier settlement and multilateral netting settlement structure. As a consequence of using multilateral netting settlement structure, CCP acts as a buyer for the seller, a seller for the buyer and this means that CCP takes credit risk on behalf of the trading participants. We verify and record orders in accordance with international standards in order to develop a sustainable and efficient market.