Goldman Looks to Ban Some Chat Services Used by Traders, WSJ Reports

Friday, 24 Jan 2014 08:04 AM

 

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Goldman Sachs Group Inc. may stop traders from using certain chat messaging services to protect internal conversations that are lately being subjected to intense regulatory scrutiny, the Wall Street Journal reported.

As per a new policy, Goldman will not allow person-to-person instant messaging services offered by Bloomberg LP, Yahoo Inc., AOL Inc. and other third-party providers including Pivot Inc., a unit of CME Group Inc., the Journal said, citing a draft of a memo.

The move comes after Goldman, JPMorgan Chase & Co. and Deutsche Bank banned their dealers from using online chatrooms.

Chatrooms have been a focus for regulators investigating possible rigging in foreign exchange market and a key interest rate known as the London interbank offered rate, or Libor, which has already cost banks billions of dollars in settlements.

Traders at banks and financial institutions often communicate with each other online via third-party services including Bloomberg LP and Thomson Reuters.

Recently, Goldman, JPMorgan and six other banks have agreed to join a new instant messaging network from Markit and Thomson Reuters to connect disparate messaging systems.

Goldman could not immediately be reached for comment by Reuters outside of regular U.S. business hours.

© 2014 Thomson/Reuters. All rights reserved.

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