JPMorgan Plans Instant Messaging Ban for Traders
JPMorgan plans to block staff from using online messaging services following investigations into trading practices by regulators.
Mon, December 16, 2013
Computerworld UK — JPMorgan plans to block staff from using online messaging services following investigations into trading practices by regulators.
It is believed that the American bank could put a ban in place this week that would encompass all messaging platforms excluding email, according to the Telegraph.
Chat rooms have become the focus of regulators as part of the Libor manipulation investigation and ongoing probes into forex markets, with claims that traders from a number of banks have colluded on benchmarks using messaging tools.
JPMorgan aims to prevent its employees from posting incriminating messages, according to reports, and also hopes to block trading staff from engaging in unfounded bragging with rivals.
CEO Jamie Dimon last month told staff to be careful about what they post on online forums, stating: "Don't exaggerate, don't ruminate, don't bulls**t."
Messaging services such as those provided via Bloomberg trading terminals have been widely used on trading floors across the world. However a number of banks have recently put in place similar bans. The Financial Times last month reported Barclays, Citigroup and RBS were also blocking staff.
Earlier this month Deutsche Bank announced it had banned chat rooms jahead of being fined hundreds of millions of euros for market manipulation and collusion with competitors.
A number of investment banks, including Merrill Lynch, Barclays, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase and Morgan Stanley, are now looking at alternative messaging services, which allow communications to take place within a secure internal system.