20 August 2017
visit www.avoka.com

Banks launch IM service to rival Bloomberg

21 July 2015  |  6752 views  |  1 Chat icons

A consortium of Wall Street banks has launched an instant messaging platform it hopes will loosen Bloomberg's vice-like grip on the market for real-time communication between traders.

Bloomberg's dominance as the default messaging medium for traders has been under threat ever since May 2013 when it emerged that the firm had allowed its own reporters to access the firm's international network of terminals and spy on the activities of users.

The snooping scandal was uncovered by Goldman Sachs traders and the Wall Street bank is also one of the prime backers for the new venture, called Symphony Communications. The platform is the result of a merger between Goldman's own internal messaging service and a tool developed by David Gurle, who has previously worked at Skype, Reuters and Microsoft.

Symphony, already being dubbed the 'WhatsApp for banks', currently has 30,000 users on a beta version of the product and will be previewed on 3 August before the product is made available to all customers in September.

Goldman and 14 other backers, including Citi, Bank of America, BNY Mellon, Deutsche, JP Morgan and Black Rock, have invested $70 million in the new venture.

Bloomberg, which has 320,000 subscribers for its Instant Bloomberg messaging service, is not the only rival that Symphony will have to supplant. Thomson Reuters has more than 210,000 users for its Eikon service.

With an initial subscription fee of $30 a month, Symphony will be a less expensive option than the $20,000 annual fee that is required to license a Bloomberg terminal but it is likely to be the enhanced security and data encryption offered by Symphony that will appeal to traders.

Such secrecy in communication between traders may however arouse some concerns among regulators given that chatroom messages between traders were a prime source of evidence in the recent FX rigging and Libor scandals uncovered by the Financial Conduct Authority in the UK.

Comments: (1)

Clive Munn
Clive Munn - MFTSE Affairs S.A. - Luxembourg | 22 July, 2015, 05:05

Sounds like a good thing, competition may be as good as regulation?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

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

Related stories

Symphony acquires technology assets of Markit chat unit

Symphony acquires technology assets of Markit chat unit

02 December 2014  |  6511 views  |  0 comments | 1 tweets | 1 linkedin
EU regulators ask for FX traders' Facebook chats - Bloomberg

EU regulators ask for FX traders' Facebook chats - Bloomberg

27 October 2014  |  6304 views  |  0 comments | 5 tweets | 5 linkedin
Wall Street firms take on Bloomberg with new messaging platform

Wall Street firms take on Bloomberg with new messaging platform

01 October 2014  |  7565 views  |  0 comments | 3 tweets | 2 linkedin
Wall Street banks turn to messaging startup as Bloomberg alternative

Wall Street banks turn to messaging startup as Bloomberg alternative

04 August 2014  |  14821 views  |  0 comments | 10 tweets | 5 linkedin
Bloomberg vows to increase oversight in wake of client data privacy probe

Bloomberg vows to increase oversight in wake of client data privacy probe

22 August 2013  |  5200 views  |  1 comments | 2 tweets

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.dorsum.eudownload the paper nowvisit www.niceactimize.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
9152 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7903 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7354 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
6657 views 0 | 1 tweets | 1 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6516 views 1 | 5 tweets | 3 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job