Industry Group to Launch Fund Messaging Utility

Custodians and CSDs have united to create a new automated messaging utility for alternative investment funds.

The messaging solution can be carried across a variety of messaging infrastructures, allowing firms to use the same ISO20022 formats for mutual fund messaging.

The solution is being led by the Global Alternative Investment Automation (GAIA) group, which consists of market infrastructures Clearstream, DTCC and Euroclear, as well as custodians J.P. Morgan and Northern Trust, under the facilitation of the Idea Group.

“The GAIA initiative provides market participants with a single set of message usage definitions for all types of fund transactions and will boost the industry-wide shift from fax to SWIFT messaging,” says Bernard Tancre, executive director of Investment Fund Services, Clearstream.

The group aims to bring automation and best practices to operational messaging flows within the global alternative investment industry.

“In close co-operation with fellow partners of the GAIA industry task force, we have tackled a major processing challenge, head on. In providing the infrastructure for standardised and harmonised messaging we are bringing the hedge fund industry to a more streamlined, efficient and less costly post trade environment,” adds Jo Van de Velde, head of Product Management, Euroclear.