Parliament and the cabinet have approved the plan to privatize the Mongolian Stock Exchange (MSE), fully state-owned since its inception in 1991. According to plan, the exchange can float up to 34% of its shares by the end of the year. The remaining 66% would remain in government hands, controlled by the Ministry of Finance.

Previous attempts to float shares of the MSE involved the London Stock Exchange Group but were never realized. In 2012, London helped the Mongolian bourse migrate to the Millennium IT trading platform. The pair later coordinated on other technology and regulatory development.

The exchange has a market cap of USD 1.6 billion and average daily trading of around USD 700,000.

The privatisation effort could help the stock market stabilise from its recent roller-coaster ride. Last year, the MSE rose 133%, easily the most of any stock exchange, but it went on to slump 18% this year.