Dec 19 (Reuters) - Royal Bank of Scotland Group's markets division has banned the use of multi-dealer online chatrooms, joining rival banks that have taken similar action inresponse to regulatory scrutiny, Bloomberg reported late onWednesday.
Chat rooms have been a focus for regulators investigatingmanipulation of the Libor and Euribor benchmark interest ratesand possible rigging in the $5.3 trillion-a-day foreign exchangemarket.
Citing a person with direct knowledge of the plan, Bloombergsaid permanent chat rooms with workers at other banks, bankentities or competitors had been prohibited, as well as thosewith clients, brokers and securities firms, unless certaincriteria were met. ()
RBS had also told trading staff at the division thatinternal chats should be limited to its own systems and usedonly for business purposes, Bloomberg added.
State-backed RBS could not be reached for comment outsideregular business hours.
Sources told Reuters this week that JPMorgan Chase,the biggest U.S. bank by assets, was planning to ban the use ofmulti-dealer online chat rooms and the use of such rooms amongstaff for social purposes.
Deutsche Bank had prohibited its foreign exchangeand fixed income staff from using online chat rooms, and UBS banned the use of multi-bank and social chat rooms atits investment banking division. Citigroup and Barclays had also clamped down, according to people familiarwith the matter.
Traders at banks and financial institutions oftencommunicate with each other online via third-party servicesincluding Bloomberg LP and Thomson Reuters.