Thai bourse and Clearstream strengthen collaboration in funds business

Stocks and Financial Services Press Releases Thursday September 6, 2018 15:36
Bangkok--6 Sep--SET

The Stock Exchange of Thailand (SET) and Clearstream Banking S.A., one of the world's leading international securities depositories, today (September 6) signed a memorandum of understanding (MoU) to strengthen the joint-investment funds' business through the online linkage between SET's FundConnext mutual fund platform and Clearstream's Vestima global fund processing platform. This marks the unprecedented cross-border cooperation and aims to broaden promising opportunities in the Asian investment fund markets for international investors.

The linkage between these two platforms is in response to foreign investors' demands for the Thai funds' market investment. The collaboration includes order routing facilitation, asset servicing and settlement services of investment funds for Thai domestic investment funds. The link is to go live in early 2019. In the future, it will also provide access to the international investment fund markets for Thai investors.

SET President Pakorn Peetathawatchai said that this groundbreaking collaboration marks a key milestone for the Thai fund industry's transformation in connecting the Thai investment fund market to global investors, thereby accelerating the growth of the Thai mutual fund industry.

"FundConnext has been built in close collaboration with the Thai mutual fund participants and the support of the Thai Securities and Exchange Commission as one of the capital market's open architecture and interoperable platforms. This is the first and only platform that streamlines mutual fund processing in Thailand. Within just one year from the first day of operation, FundConnext can now expand to serve foreign participants and take the Thai mutual fund industry to the international level by serving as a gateway for investors in 56 countries to capture investment opportunities available in the Thai mutual fund industry with an asset of THB 4.6 trillion (EUR 121 billion). We are delighted that Clearstream will be the first foreign participant to utilize this standardized infrastructure to enter into Thailand."

Philippe Seyll, Co-CEO of Clearstream Banking S.A. and Head of Investment Funds Services at Clearstream, said the cooperation with SET continues the development of our Asia funds strategy allowing more international investors to gain easy access to the local fund markets.

"We are very pleased to announce the linkage to SET's FundConnext in order to bring greater access for international investors to the Thai fund industry and potentially allowing Thai investors to seamlessly access the international investment fund markets," Philippe Seyll said.

Rapee Sucharitakul, Secretary-General, The Securities and Exchange Commission, Thailand stated that the initiative of FundConnext is a proven solution for processing the Thai mutual funds. It helps standardize working processes across the entire industry. The linkage between FundConnext and Clearstream is a key move of FundConnext to drive the growth of Thai mutual funds. The SEC congratulates on this success and will continue to provide regulatory support.

About The Stock Exchange of Thailand

The Stock Exchange of Thailand (SET) is among the most liquid exchanges in Asia, providing a full range of investment products including equities, derivatives, as well as world-class trading, post-trade infrastructure/technology services in accordance with international practice (EMEA and PFMI). Going forward, SET's vision "To Make the Capital Market Work for Everyone" is aligned with the aim to support strong economic growth and competitiveness. Globally and regionally, SET has also actively coordinated with other exchanges to boost investment opportunities and capital market growth potential. Moreover, SET puts strong emphasis on sustainable growth by promoting listed companies' business models that care for environmental, social and governance (ESG) practices.

About Clearstream

As an international central securities depository (ICSD), headquartered in Luxembourg, Clearstream, which is part of Deutsche Boerse Group, provides the post-trade infrastructure for the Eurobond market and services for securities from 56 domestic markets worldwide. With 13 trillion Euros in assets under custody, Clearstream is one of the world's largest settlement and custody firms for domestic and international securities. Alongside its highly automated mutual fund services, Clearstream provides clients with a 'one-stop shop' solution for all fund types.

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