The Stock Exchange of Thailand and Clearstream launch link for investment funds
Today, the Stock Exchange of Thailand (SET) and Clearstream Banking S.A., an international central securities depository, launched a joint connection to enable cross-border funds transactions.
The new linkage between SET’s mutual fund platform FundConnext and Clearstream’s global fund processing platform Vestima enables international investors to access the Thai fund market. As of August 2019, the Thai mutual fund market encloses assets under management at THB 4.01 trillion (EUR 119 billion). In return, Thai investors have access to more than 190,000 investment funds close to 50 jurisdictions worldwide via Vestima.
The linkage of the two platforms is operated via SWIFT’s standard messaging format ISO 20022.
Pakorn Peetathawatchai, SET’s President, commented: “The linkage enhances fully automated capabilities for cross-border investment fund distribution between Thailand and the world. As the first implementations of ISO 20022 in Thailand, FundConnext is committed to providing the world’s and Thailand’s investment communities with lower cost, ease of access and more efficient services.”
Bernard Tancré, Head of Investment Funds Services at Clearstream, commented: “Adding order routing, asset servicing and settlement services for Thai domestic investment funds to our portfolio perfectly fits our Asia funds strategy. The connection between Clearstream’s Vestima and SET’s FundConnext will enhance access to Thai and international funds for domestic and global market participants.”
Lisa O’Connor, Managing Director, Capital Markets and Standards, APAC, SWIFT, commented: “For more than ten years, ISO 20022 has been widely adopted as a standard for funds distribution and processing as it allows for interoperability, richer data and straight-through processing. We are delighted that Clearstream and The Stock Exchange of Thailand decided to leverage ISO 20022 and SWIFTNet capabilities to design their link and we strongly believe it will bring benefits to all their investors.”
Find here all fund markets connected to Clearstream: https://www.clearstream.com/clearstream-en/products-and-services/investment-funds-services/vestima/market-coverage
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.
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 58 domestic markets worldwide. With around 14 trillion Euros in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities. Alongside access to more than 190,000 investment funds in close to 50 jurisdictions worldwide and highly automated mutual fund services, Clearstream provides clients with a ‘one-stop shop’ solution for all fund types.
SWIFT is a global member owned cooperative and the world’s leading provider of secure financial messaging services. We provide our community with a platform for messaging and standards for communicating, and we offer products and services to facilitate access and integration, identification, analysis and regulatory compliance. Our messaging platform, products and services connect more than 11,000 banking and securities organisations, market infrastructures and corporate customers in more than 200 countries and territories. While SWIFT does not hold funds or manage accounts on behalf of customers, we enable our global community of users to communicate securely, exchanging standardised financial messages in a reliable way, thereby supporting global and local financial flows, as well as trade and commerce all around the world.