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Goldman Sachs bans multidealer chatrooms: source
December 20, 2013 / 3:51 PM / 4 years ago

Goldman Sachs bans multidealer chatrooms: source

LONDON (Reuters) - U.S. investment bank Goldman Sachs (GS.N) 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.

A view of the Goldman Sachs stall on the floor of the New York Stock Exchange July 16, 2013. REUTERS/Brendan McDermid

The move follows similar steps this week by JP Morgan Chase (JPM.N) and Deutsche Bank (DBKGn.DE), 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 fixed income.

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 market.

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 (TRI.TO).

Reporting by Jamie McGeever; editing by Andrew Roche

Our Standards:The Thomson Reuters Trust Principles.
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