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.

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Comments (4)
  • mikhail.shimonov
    , contributor
    Comments (9) | 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 (165) | 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 (1893) | 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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