InfoQuest (September 23, 2019) -- Mr. Pakorn Peetathawatchai, director and manager of Stock Exchange of Thailand (SET), revealed that SET will cooperate with Clearstream to link Thailand's mutual fund system "FundConnext" with Clearstream's "Vestima" system. The objective is to facilitate Thai people in investing in world-class mutual funds and offer more channels for foreign investors from 50-plus countries to invest in Thailand's mutual funds.
Thai mutual funds are mainly managed by Thailand's investment management companies and settled by the international payment system of Standard Chartered Bank (Thailand). Besides, ISO 20022 will be used to connect the above-mentioned two systems for the first time in Thailand.
On September 23, 2019, FundConnext, the central platform of Thai mutual fund launched in 2016, was connected with the global fund transaction platform "Vestima" of Clearstream Banking SA. The connection will facilitate investors from 50-plus countries in making investments in 1,400-plus Thai mutual funds with a capital scale of 4.01 trillion baht. Meanwhile, Thai people can use the automatically connected system to invest in world-class mutual funds as easily as they invest in domestic mutual funds.
"SET is committed to developing capital market infrastructure, promoting free investment, and enabling the realization of digital era in all aspects. In this connection, people can make convenient, secured investment through an efficient working system. Besides, this is Thailand's first application of ISO 20022 standard interconnection system . ISO 20022 is a widely used international standard for global financial institutions to get interconnected.
According to Bernard Tancré, head of mutual fund affairs at Clearstream Banking SA, the Clearstream platform currently owns over 190,000 funds worldwide. Its interconnection with FundConnext's system is in line with the company's strategy in expanding the fund network spanning Asia. In this way, the company will become a portal for global investors to make investments in Thai mutual funds.
Ms. Lisa O'Connor, managing director of Capital Markets and Standards, APAC at Swift Co., Ltd., said that the company is pleased that SET and Clearstream took the lead to use ISO 20022 and SWIFTNet system in Thailand. ISO 20022 has been used in global financial sectors for over 10 years. The standard has facilitated financial transaction among agencies. It can support enormous information of various types and straight-through processing.
Mr. Plakorn Wanglee, president and CEO of Standard Chartered Bank (Thailand), revealed that the bank is pleased to work with SET and Clearstream to facilitate FundConnext in investing cross-border funds, and the cooperation will enhance the performance of Thailand's mutual fund industry and its capacity of sustainable development.
Source: InfoQuest, by Wilawan Pongpitak / Rachada, translated by Xinhua Silk Road
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