Chat rooms, while not a particularly cutting edge technology, are receiving increased scrutiny from banking regulators who are aiming to dissuade traders from using them to pass sensitive information to clients and peers. Regulators say that chat rooms, which are currently not monitored by banks with the same level of care as phone calls and emails, could be used as a platform to facilitate market manipulation and conspire in shady dealings.
At the heart of the issue are a series of investigations into exchange and currency rate manipulations that were conducted by way of chat rooms. These investigations may not only end in heavy fines for the banks involved, but could also cause considerable damage to their reputations. Traders are reported to have engaged in boisterous and off color conversations with one another via these chats.