Mongolia Securities Market Specialist Exam study plan

Map the hierarchy of Mongolian securities regulation - the Securities Market Law, Financial Regulatory Commission (FRC) resolutions, and the Mongolian Stock Exchange (MSE) and clearing-house rulebooks - and state how a conflict between them is resolved.

Trace the licensing pathway for a securities firm and for a collective investment scheme, listing every approval, capital test and recurring filing that attaches to each.

Catalogue the FRC's supervisory toolkit (periodic reporting, on-site inspection, remedial orders, sanctions) and match each sanction type to the breach that typically triggers it.

Draft the disclosure obligations of a listed issuer: periodic financial reporting, immediate material-event notice, and the insider-dealing prohibition, naming who is responsible for each.

Explain investor-protection mechanics: client asset segregation, suitability and know-your-client duties, complaint handling, and the redress route available to a retail investor.

Classify securities available in Mongolia - ordinary and preferred shares, corporate bonds, government securities, fund units, and derivative contracts - by issuer, transferability and disclosure regime.

Sequence an initial public offering on the MSE from prospectus preparation through FRC approval to admission to trading, noting the eligibility thresholds an issuer must meet.

Contrast a public offering with a private placement and identify the point at which a prospectus becomes mandatory and resale restrictions apply.

Describe MSE trading mechanics: order types, the pre-open and opening auction, continuous trading, closing price determination, and the price-limit or circuit-breaker rules the exchange applies.

Apply tick size and lot size rules to a set of orders and determine which orders are valid, which are rejected, and how the rule changes round-trip transaction cost.

Distinguish the execution and reporting roles of broker, dealer, market maker and exchange, and state who owes a duty to whom at each step.

Recognise market-abuse patterns - spoofing, layering, wash trades, marking the close - as they appear in an order book or trade tape.

Simulate a trade life cycle from order entry to final settlement, naming every intermediary, every message and every confirmation along the way.

Explain the clearing house and central depository function, including novation or netting, the settlement cycle, and what happens when a counterparty fails.

Distinguish delivery-versus-payment from free-of-payment delivery and state exactly which risk each structure removes and which it leaves with the buyer or seller.

Compare omnibus and segregated custody account structures and design the reconciliation controls each one requires.

Build a discounted cash flow valuation of an MSE-listed company: forecast free cash flow, assemble a WACC that includes a country risk premium for Mongolia, and derive equity value per share.

Run a relative valuation on the same company using P/E, EV/EBITDA and P/B against a set of regional emerging-market comparables, and reconcile the answer with the DCF.

Value a fixed-rate MNT corporate bond using yield to maturity, duration and convexity, and quantify the price change for a 100 basis point parallel shift.

Adjust nominal MNT cash flows for inflation, currency and sovereign spread, and explain how each adjustment moves the final value.

Compute mean return, standard deviation, covariance, beta, Sharpe ratio and Treynor ratio from a 36-month return series for four assets, showing the formulas used.

Construct the efficient frontier for a three-asset portfolio, identify the minimum-variance and maximum-Sharpe portfolios, and explain why the weights differ.

Write an investment policy statement for an institutional client with a defined liability profile, covering objectives, constraints, rebalancing bands and reporting.

Justify an asset allocation across MNT cash, government bonds, domestic equities and foreign assets, citing liquidity, regulatory limits and liability matching as constraints.

Build a risk register for a securities firm covering market, credit, liquidity, operational and settlement risk, each entry carrying a control, an owner and a review frequency.

Compute one-day VaR for a small equity book by both variance-covariance and historical simulation, and state the limitations that make each number unreliable in a thin market.

Design a compliance monitoring programme covering personal account dealing, gifts and entertainment, information barriers, AML/CFT and suspicious transaction reporting, with a test for each.

Explain the capital adequacy and liquidity requirements applied to securities firms and describe the escalation path when a limit is breached.

Apply the professional standards framework to conflicts of interest, material non-public information and performance presentation, stating the specific action required in each case.

Resolve eight ethics vignettes, including two where the correct answer is to refuse an instruction from a supervisor, and explain why each distractor fails.

Distinguish recognition, measurement and disclosure outcomes under IFRS as applied in Mongolia for financial instruments (classification and expected credit loss) and for revenue.

Work four accounting scenarios linking a reported figure to its effect on a valuation ratio, and identify the common manipulation signals in each.