27 November 2015

Wall Street banks turn to messaging startup as Bloomberg alternative

04 August 2014  |  13791 views  |  0 Stock exchange numbers

A group of Wall Street banks, led by Goldman Sachs, are on the verge of buying a stake in instant messaging firm Perzo as they prepare to break free of their reliance on Bloomberg, according to Reuters.

The Instant Bloomberg chat system has long dominated Wall Street but it comes as part of a $20,000-a-year terminal package in an age when banks are bidding to slash costs.

Goldman, Morgan Stanley, JPMorgan Chase & Co, Bank of America, Deutsche Bank, HSBC and BlackRock are all now pondering investing in Perzo, which has developed free messaging apps, as an alternative, says Reuters, citing sources.

Last year relationships between Bloomberg and the banks took a hit when it emerged that the the firm's journalists had snooped on clients by monitoring page views and log-ins by traders using its desktop data terminals.

A deal for Perzo would not be the first time that banks have tried to loosen Bloomberg's grip on the instant messaging market. Several have signed up for a new open messaging network being set up by Markit and backed by Thomson Reuters.

Instant messaging and chat rooms have been in the spotlight recently, with banks banning traders from using them after they became fruitful hunting ground for regulators sniffing out market manipulation.

Logs of chats between traders on Bloomberg terminals and Thomson Reuters desktops have formed a central plank of investigations into the Libor fixing scandal and allegations of foreign exchange rates manipulation.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

30 April, 2014
18 December, 2013
04 December, 2013
22 November, 2013
07 October, 2013
22 August, 2013
16 May, 2013
13 May, 2013

Related company news


Who is commenting?

Finextra Member Commented on: EPC publishes proposal...
Finextra Member Commented on: EPC publishes proposal...

Top topics

Most viewed Most shared
BBVA buys 29.5% stake in Atom for £45...
7723 views comments | 34 tweets | 41 linkedin
BNP Paribas to test contactless payment di...
6036 views comments | 17 tweets | 25 linkedin
Former Barclays chief forecasts massive jo...
5705 views comments | 27 tweets | 29 linkedin
Hilton confirms data breach
5315 views comments | 11 tweets | 17 linkedin
Alternative payment methods challenge plas...
5149 views comments | 21 tweets | 23 linkedin

Featured job

Competitive base, double OTE
London, UK

Find your next job