The Stock Exchange of Thailand and Clearstream strengthen collaboration in funds business

06.09.2018

The Stock Exchange of Thailand (SET) and Clearstream Banking S.A., an international central securities depository, today signed a memorandum of understanding (MoU) to strengthen the joint investment funds business through the online linkage between SET’s mutual fund platform FundConnext and Clearstream’s global fund processing platform Vestima. This cross-border cooperation aims to broaden access to the Asian investment fund markets for international investors.

The linkage between the two platforms is in response to foreign investors’ demands for the Thai funds market. It will facilitate order routing, asset servicing and settlement services for Thai domestic investment funds. The implementation of the link will be announced in due course, subject to further discussions. In the future, it will also provide access to the international investment fund markets for Thai investors.

Pakorn Peetathawatchai, President of the SET, said that this collaboration will accelerate the growth of the Thai mutual fund industry. “Within just one year from the first day of operation of the platform, FundConnext will now expand the service to foreign participants and take the Thai mutual fund industry to an international level. It will serve as a gateway for investors to capture investment opportunities available in the Thai mutual fund industry with assets under management of THB 4.6 trillion (EUR 121 billion). We are delighted that Clearstream will be the first foreign participant to utilise this standardised 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 the 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,”

Rapee Sucharitakul, Secretary-General, The Securities and Exchange Commission (SEC), Thailand, stated: “The initiative of FundConnext is a proven solution for processing the Thai mutual funds. It helps standardise working processes across the entire industry. The linkage between FundConnext and Vestima is a key move 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, 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 Börse Group, provides the post-trade infrastructure for the Eurobond market and services for securities from 57 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.