The Stock Exchange of Thailand (SET) and Clearstream have signed a memorandum of understanding to strengthen their joint investment funds business by linking SET’s mutual fund platform, FundConnext and Clearstream’s global fund processing platform, Vestima.
The agreement is meant to broaden access to the Asian investment fund markets for international investors.
According to SET, the agreement will further facilitate order routing, asset servicing and settlement services for Thai domestic investment funds.
It will also provide access to the international investment fund markets for Thai investors.
The implementation of the link will be announced in due course, subject to further discussions.
Pakorn Peetathawatchai, president of the SET, commented: “FundConnext will now expand the service to foreign participants and take the Thai mutual fund industry to an international level.”
“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 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.”
He added: “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 at Thailand’s Securities and Exchange Commission, commented: “The initiative of FundConnext is a proven solution for processing the Thai mutual funds. It helps standardise working processes across the entire industry.”
He added: “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.”
