Inside Wall Street's battle with traders over their use of non-compliant messenger apps like WhatsApp and WeChat
WhatsApp; Getty Images; Samantha Lee/Business Insider
The use of non-compliant communications platforms like WhatsApp to discuss work-related matters has long plagued Wall Street.
During the coronavirus pandemic, usage of alternative communication apps skyrocketed as employees shifted to remote work, experts told Insider. It resulted in some internal scuffles, including the dismissal of two top Morgan Stanley commodities trading execs.
But Wall Street's inability to better rein it in now has regulators stepping in with their own crackdown.
Bloomberg News reported on Wednesday that the Securities and Exchange Commission has ordered "the largest-ever probe into clandestine messaging on platforms such as WhatsApp," adding that the regulatory agency has sent banks the names of dozens of high-level employees whose communications must now be reviewed to assess potential wrongdoing.
The order entails seizing more than 100 personal cellular devices of these employees — who reportedly include the "heads of certain investment-banking teams or trading desks," according to Bloomberg — so that they may be inspected by attorneys. Punitive measures could be on the way.
Insider investigated why the use of non-compliant communications systems continue to hang over Wall Street compliance managers' heads in a 2020 report. We spoke with more than a dozen traders, compliance experts, tech providers, and other market participants to gauge what's driving the continual use of WhatsApp — and what, if anything, firms can do to stop it.
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Editor's note: This story was originally published in November 2020 and has been updated.
Contributer : Business Insider https://ift.tt/UKdSe6i
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Thursday, May 19, 2022
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