Deutsche Bank bans trader chat rooms

Deutsche Bank announced it has banned online trader chat rooms, as it is fined hundreds of millions of euros over market manipulation and collusion.

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Deutsche Bank announced it has banned online trader chat rooms, as it is fined hundreds of millions of euros for market manipulation and collusion with competitors.

According to Bloomberg, the bank put in place a ban on multi-party messaging tools used by fixed income employees earlier this week, after barring foreign exchange traders in February.  

A number of other banks are also believed to have banned traders from using chat rooms in recent months, including Citigroup, Barclays and RBS.

Chat rooms have been the focus of regulators as part of the Libor manipulation investigation and ongoing probes into forex markets, with traders from different banks colluding on benchmarks using messaging tools.

The announcement from Deutsche Bank comes on the same day as the bank is named as one of the six firms which are to receive a record £1.4 billion penalty for rate rigging.

JPMorgan, Citigroup, Societe Generale and UK brokerage RP Martin also received fines, with Deutche Bank's the largest at £602 million. UBS and Barclays managed to escaped significant penalties for revealing the existence of the Euribor cartel.

Joaquín Almunia, Commission vice-president in charge of competition policy, said: "What is shocking about the Libor and Euribor scandals is not only the manipulation of benchmarks, which is being tackled by financial regulators worldwide, but also the collusion between banks who are supposed to be competing with each other.

“Today's decision sends a clear message that the Commission is determined to fight and sanction these cartels in the financial sector.” 

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