The suspension of half of Mongolia's broker community by the local exchange last month has highlighted the problems faced by those trading frontier markets.
The nation’s Securities and Exchange Commission has amended laws to encourage foreign participation and drive scale in the domestic market.
Foreign investors must have exit strategies at all times to guard against the sudden risk of market liquidity grinding to a halt, says a fund manager in Ho Chi Minh City.
The International Finance Corporation is considering issuing mandates to third-party managers to bring $2.5 billion to frontier and emerging public markets.
Fund managers and even some providers of exchange-traded funds say ETFs may be ill-suited for accessing immature markets.
The bank’s asset management arm argues the case for frontier markets over emerging markets, with Nigeria a particular favourite.