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RBS, Barclays and Citi ban trader chat rooms

Matthew Finnegan | Nov. 25, 2013
Banks including Barclays, Royal Bank of Scotland and Citigroup have banned traders from using unmonitored online chat rooms in a bid to reform trading floor behaviour.

Banks including Barclays, Royal Bank of Scotland and Citigroup have banned traders from using unmonitored online chat rooms in a bid to reform trading floor behaviour.

According to the Financial Times, traders will be unable to access widely-used group chat forums as regulators continue investigations into market manipulation.

RBS is believed to have banned chat forums following the Libor scandal, which resulted in banks receiving $3.7 billion (£2.3bn) in fines. Two months ago Citigroup also put restrictions on instant messages, only allowing traders to send instant messages to one other institution at a time. Barclays put a similar ban in place late last year.

It was recently revealed that others, such as JP Morgan, are also considering such a ban.

Investment banks are believed to be considering chat room bans due to current investigations into forex trading by regulators.

A number of investment banks are now implementing Markit's messaging service, which allows communications to take place within a secure internal system.

 

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