JPMorgan And Others To Prohibit Traders From Chat Rooms

JPMorgan And Others To Prohibit Traders From Chat Rooms
Joe Mabel [CC BY-SA 3.0], via Wikimedia Commons

Large banks including JPMorgan Chase & Co. (NYSE:JPM), Barclays PLC (NYSE:BCS) (LON:BARC), Credit Suisse Group AG (NYSE:CS), Citigroup Inc (NYSE:C), Royal Bank of Scotland Group plc (NYSE:RBS) (LON:RBS) and UBS AG (NYSE:UBS) are planning to block their traders from chat rooms. Traders use computer chat rooms to communicate with their colleagues at other banks. Regulators have found that traders have used chat rooms to discuss their trading positions and subsequent market manipulation.

JPMorgan And Others To Prohibit Traders From Chat Rooms

JPMorgan examining chat room uses

After paying hefty fines for their involvement in the Libor scandal, big banks are reviewing the use of chat rooms. Sources familiar with the matter told Jenny Strasburg of The Wall Street Journal that JPMorgan Chase & Co. (NYSE:JPM) has been examining chat room use for several months. The Jamie Dimon-led bank is evaluating if emails and one-to-one phone calls can be more effective. JPMorgan Chase & Co. (NYSE:JPM) plans to complete its review in the first quarter of 2014. The bank executives are reviewing trading operations on New York, London and Asia to assess how a change in the mode of communication will affect client and trading activities.

Dan Sundheim Founder Of D1 At Sohn 2021 On His Favorite Stock

Jeffrey Aronson Crossroads CapitalAt this year's Sohn Investment Conference, Dan Sundheim, the founder and CIO of D1 Capital Partners, spoke with John Collison, the co-founder of Stripe. Q1 2021 hedge fund letters, conferences and more D1 manages $20 billion. Of this, $10 billion is invested in fast-growing private businesses such as Stripe. Stripe is currently valued at around Read More

Big banks fear disclosure of chat transcripts

Traders communicate with each other and their clients through their Bloomberg terminals. Investigators found that traders and brokers used their chat rooms to discuss drugs and sex, and engaged in crude banter. Big banks have seen their reputation being tarnished after Libor manipulation. Banks fear that investigators may publicly disclose the embarrassing chat transcripts. So far, banks have collectively paid more than $3.5 billion in Libor manipulation fines.

A few months ago, Citigroup Inc (NYSE:C) shifted some of its forex traders from Bloomberg chat terminals to an internal system. It would improve security and reduce expenses, said Citigroup Inc (NYSE:C). The bank’s move came at a time when big banks accused Bloomberg of data privacy breaches.

JPMorgan Chase & Co. (NYSE:JPM) shares fell 0.28% to $53.81 at 9:39 AM EST. The stock is up 22.4% this year so far.

No posts to display