Royal Bank of Scotland’s markets division has banned employees from using multidealer chat rooms, joining rivals in curbing the forums amid probes, according to a person with direct knowledge of the plan.
Deutsche Bank barred multi-party chat rooms at its fixed-income and currency trading businesses as regulators investigated rate-rigging.
Here's the memo:
Goodbye, old friend.
Some of the world's biggest banks have banned traders from using chat rooms following a series of allegations related to fixing rates.
In both the Libor-rigging scandal and the unfolding foreign exchange-fixing investigations , traders' use of chat rooms to exchange gossip, insults and market-moving tidbits seems to have played a key role.
Big banks are considering disabling online chat rooms that link traders across many financial institutions over concerns of mounting scrutiny from regulators, the Wall Street Journal reported, citing people familiar with the discussions.
Dear Mr & Mrs Properly: Please don’t laugh, but I went into a chat room the other day. I hadn’t been in a chat room for at least 15 years, and boy have things changed. I feel like I need a handbook for modern-day chat room etiquette. Any interest in putting one together for me? Signed, Slightly Embarrassed