News Detail

Date/Time
06 Sep 2018 17:31:00
Headline
SET News : Thai bourse and Clearstream strengthen collaboration in funds business
Symbol
SET
Source
SET
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         SET News 72/ 2018
                                                                                
         September 6, 2018

Thai bourse and Clearstream strengthen collaboration in funds business

BANGKOK/ LUXEMBOURG, September 6, 2018  - 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 B?rse 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.

                              "SET...Make it Work for Everyone"
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