Mongolia's ResCap Securities Live on NRI/Omnesys/GII Platform

Nomura Research Institute's Financial Technologies India (NRI FT India) division has partnered with Omnesys Technologies and Global Investment Initiative (GII) to build and modernize financial and trading infrastructure in the Mongolian marketplace via a front-to-back brokerage system.

GII is a startup integrator based in the Mongolian capital of Ulan Bator; India-based Omnesys provides trading software solutions, and was recently bought by Thomson Reuters; and NRI is a consultancy and systems provider.

The first client live on trio's platform is ResCap Securities, a Mongolia-based brokerage. This is the first step in a larger project to modernize the Mongolian marketplace, Hiroki Shimada, senior business development manager at NRI, tells Sell-Side Technology.

"ResCap is the first client leveraging the solution," Shimada says. "Being one of the largest by its transaction volume, and one of the few brokers to provide cross-border trade capabilities, ResCap desired to become the first in the market to implement the latest technology and innovate its services and processes."

In April, ResCap announced that it was the first Mongolian broker providing electronic trading access for clients on the Mongolian Stock Exchange (MSE) after signing with NRI and GII. Along with Omnesys, the trio is looking to continue to streamline front-, middle- and back-office processes in the country.

"Mongolia is a promising market but still at a frontier stage," Shimada says. "That is why we needed to consider bringing the best-of-breed solutions and capabilities, fully leveraging existing assets. Therefore, rather than building local teams and front-end technology of our own, we decided to seek the best partners who could contribute quickly.

"While we were seeking to develop this business in Mongolia, NRI FT contacted Omnesys, which is one of the most successful front-end trading technology providers in India," Shimada continues. "We found it was a good fit for each firm, with regards to our back-end securities processing technology and experiences in international projects, and Omnesys' flexible and function-rich front-end technology."

The key to this agreement, Shimada says, is to move firms away from manual processes toward more automated solutions.

"To be fair, business processes of brokers in Mongolia traditionally were full of manual works—i.e., orders and execution via fax/calls, Microsoft Excel spreadsheets, prints and manual reconciliation," Shimada says. "The new system, fully integrated from trading to back-office settlement, automatically connecting to the MSE and its central securities depository infrastructure, brings full automation to the processes."