RBS, Barclays and Citi ban trader chat rooms

Banks including Barclays, Royal Bank of Scotland and Citigroup have banned traders from using unmonitored online chat rooms in a bid to reform trading floor behaviour.

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Banks including Barclays, Royal Bank of Scotland and Citigroup have banned traders from using unmonitored online chat rooms in a bid to reform trading floor behaviour.

According to the Financial Times, traders will be unable to access widely-used group chat forums as regulators continue investigations into market manipulation.

RBS is believed to have banned chat forums following the Libor scandal, which resulted in banks receiving $3.7 billion (£2.3bn) in fines. Two months ago Citigroup also put restrictions on instant messages, only allowing traders to send instant messages to one other institution at a time. Barclays put a similar ban in place late last year.

It was recently revealed that others, such as JP Morgan, are also considering such a ban.

Investment banks are believed to be considering chat room bans due to current investigations into forex trading by regulators.

number of investment banks are now implementing Markit’s messaging service, which allows communications to take place within a secure internal system.

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