THE STOCK Exchange of Thailand (SET) and Clearstream Banking S A, one of the world's leading international securities depositories, 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 yesterday.
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 Bt4.6 trillion (EUR 121 billion).
“We are delighted that Clearstream will be the first foreign participant to utilise this standardised infrastructure to enter into Thailand," he said.
Philippe Seyll, Co-CEO of Clearstream Banking SA 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.
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 standardise 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.