LONDON Dec 20 U.S. investment bank Goldman
Sachs has become the latest major financial institution
to ban its dealers from using multilateral online chatrooms, a
source familiar with the matter said on Friday.
The move follows similar steps this week by JP Morgan Chase
and Deutsche Bank, as the global
investigation into allegations of manipulation of the $5.3
trillion-a-day currency market gathers steam.
Goldman's move extends beyond foreign exchange to its entire
securities division, which includes equities, commodities and
Bilateral communications via these chatrooms will still be
permitted, the source said.
Chatrooms have been a focus for regulators investigating
possible rigging in foreign exchange, the world's largest
They also featured prominently in a five-year probe into the
rigging of a key interest rate known as the London interbank
offered rate, or Libor, which has already cost banks billions of
dollars in settlements.
Traders at banks and financial institutions often
communicate with each other online via third-party services
including Bloomberg LP and Thomson Reuters.