Seeking Alpha

Banks ban traders from chat rooms

  • “The bank clamped down on this big time. I think we were even going slightly overboard on this,” says one senior banker after a number of lenders including Barclays (BCS), Citigroup (C), and RBS banned the use of most chat rooms amid probes into rate manipulation.
  • Most of the rooms in question are those where traders from competing banks participate - it's these on paper conversations where investigators are likely to draw the fuel for their anti-competitive practice charges. JPMorgan (JPM) is reportedly examining whether these conversations should instead be carried out over the phone.
  • Previous: "The Bandits Club" and "The Cartel"
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Comments (4)
  • mikhail.shimonov
    , contributor
    Comments (10) | Send Message
    ... So does that mean all chat rooms must be off whenever trading for every trader? What defines a trader? A person playing around on a TD Ameritrade account now can't use their chat system while trading? Or is this on a bank to bank basis?
    22 Nov 2013, 07:46 AM Reply Like
  • RobertDen
    , contributor
    Comment (1) | Send Message
    I see no harm in a trader reading chat room comments, but they should all be totally banned from posting anything at any time on any subject.
    22 Nov 2013, 08:19 AM Reply Like
  • Mattster
    , contributor
    Comments (163) | Send Message
    Would be interesting for banks to see which guys can actually trade without cheating. A lot of new positions would open up for traders who have some real ability.
    22 Nov 2013, 09:08 AM Reply Like
  • bill d
    , contributor
    Comments (1896) | Send Message
    Banks? Traders? Cheating?
    Oh - please tell me it isn't so.
    23 Nov 2013, 01:42 PM Reply Like
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