RBS clamps down on multi-dealer online chat rooms

(Reuters) – Royal Bank of Scotland’s markets division has banned the use of multi-dealer online chat rooms, the bank said, joining rival banks that have taken similar action in response to regulatory scrutiny. Chat rooms have been a focus for regulators investigating manipulation of the Libor and Euribor benchmark interest rates and possible rigging in the $5.3 trillion-a-day foreign exchange market. Confirming a Bloomberg report, RBS said it had told front office staff in its markets division that all permanent chat rooms with workers at other banks, bank entities or competitors had been prohibited, as well as those with clients, brokers and securities firms, unless certain criteria were met. RBS has also told staff that all social chat rooms are prohibited and must be closed immediately.

    

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