TOKYO, 22 May 2017 - Nomura Research Institute, Ltd. (CEO: Shingo Konomoto, HQ: Tokyo, NRI) and Japan Exchange Group, Inc. (Group CEO: Akira Kiyota, HQ: Tokyo, JPX) have embarked on a project entitled "Money Market and Capital Market Development Strategy for Mongolia", commissioned by the European Bank for Reconstruction and Development (EBRD).
Mongolia has shown significant economic development since its transition to democracy and a market economy. Recently, however, due to factors such as falling prices of natural resources, the country’s economy has suffered a slowdown, leading to potential financial assistance from the International Monetary Fund and other organisations. Mongolia is working on policy initiatives for economic recovery and budget improvement, with support from various international donor organisations. Development of the capital market is among the important areas covered by these initiatives.
With funds from the Japan-EBRD Cooperation Fund, the EBRD selected a joint team of NRI and JPX staff to support Mongolia in establishing a long-term development plan for the Mongolian capital market, identifying barriers and recommending possible solutions. The project is expected to run from May to October 2017. This is the first time that the EBRD has selected a Japanese firm as a consultant company for technical assistance in the area of financial markets.
"The joint team of NRI and JPX appeared particularly strong among those candidates with in-depth knowledge both in money markets and capital markets. We expect the team to produce exceptionally high-quality deliverables that will support the aims of Mongolia's national strategy for the development of financial markets," said Tricia Huijeong Park, operation leader of the project at the EBRD Local Currency and Capital Markets Development Team.
Aude Pacatte, Head of Local Currency Portfolio Management at the EBRD Treasury, emphasises that money market development is a prerequisite of capital market development and that all stakeholders should work together to agree on the sequence of reforms and the role of each institution.
Irina Kravchenko, Head of the EBRD Resident Office in Ulaanbaatar, commented: "We believe this project is very important for the country and it is consistent with one of the main strategic priorities of the EBRD's new country strategy for Mongolia. We look forward to cooperating with NRI and JPX on this initiative and providing assistance to the Ministry of Finance of Mongolia to achieve the best possible outcome for development of the money and capital markets."
■ About Nomura Research Institute, Ltd.(http://www.nri.com)
Nomura Research Institute (NRI) was founded in 1965 as the first commercial think-tank in Japan. Since then, it has supported and advised various firms and governments in their strategies and policies, as well as developing and operating their IT systems. With its four business domains of consulting, financial IT solutions, industrial IT solutions, and IT infrastructure services, NRI supports businesses globally. As of April 2017, NRI group has about 40 offices worldwide and over 12,000 staff. NRI also emphasises assistance for the development of financial markets in emerging economies, with various projects in South-East Asia, including Indonesia, Laos and Vietnam. In 2015 and 2016, NRI was ranked fifth in the University of Pennsylvania's global list of Best For-Profit Think Tanks.
JPX offers Japan's most comprehensive integrated market infrastructure, with its business covering cash and derivatives market operations, self-regulation, and clearing. The Tokyo Stock Exchange is home to more than 3,500 companies and a wide variety of exchange-traded products (ETFs/ETNs) and real-estate investment trusts (REITs), while the Osaka Exchange provides highly liquid derivative products. In addition to these efficient, stable and transparent market mechanisms, self-regulation provided by Japan Exchange Regulation and central counterparty clearing functions provided by the Japan Securities Clearing Corporation also contribute to trust and confidence in JPX's robust, reliable market infrastructure. JPX will drive market development and continue to diversify its business portfolio as it pursues the next step towards becoming your preferred exchange.
■ About European Bank for Reconstruction and Development(http://www.ebrd.com)
The European Bank for Reconstruction and Development (EBRD) is a multilateral bank committed to the development of market-oriented economies based on the private sector and the promotion of private and entrepreneurial initiative. The Bank operates in over 30 countries, from Morocco to Mongolia and from Estonia to Egypt, and is owned by 65 countries as well as the European Union and the European Investment Bank.
The EBRD combines investments with policy dialogue aimed at strengthening the business environment in the countries where it works. To date, the EBRD has invested over €116 billion through more than 4,600 projects. Local currency and capital market development is among the Bank's priorities as part of its strategic plan for the period 2016-18, which has three main priorities: strengthening economic resilience, addressing global challenges and supporting regional integration.