In an age when people use their cellphones for everything, chat groups and online messaging apps have become the most popular methods of communication for personal and corporate use. For a long time, traders at financial institutions have been using instant messaging tools to communicate with customers.
However, these same online chat systems have posed several issues for financial regulators to ensure market stability and integrity, as numerous traders have been discovered abusing them for unlawful purposes. So, regulators say that financial institutions must keep an eye on all electronic communication channels to help fight financial crime at all levels.
The Cartel Forex Scandal is a well-known illustration of how new electronic communication channels may cripple the financial industry. In this case, traders from numerous institutions were accused of manipulating Forex prices for financial advantage for several years via internet chat rooms. Investigators combed through thousands of chat records according to news reports on the incident. They determined that over 200 chat rooms were involved in this Forex rate-rigging case, demonstrating how large banks coordinated for nearly a decade.
This is not the first time some banks have been implicated in price-fixing. Regulators were already investigating them for market manipulation. For example, in 2019, various banks, including JP Morgan and Barclays, were fined 1.3 billion US dollars by the European Union antitrust agency following an investigation into two chat rooms. In addition, several banks are said to have paid $11.8 billion in fines and $2.3 billion in compensation to clients and investors worldwide.
How do TeleMessage mobile archiving solutions address market manipulations?
TeleMessage provides a mobile archiver, a powerful mobile archiving technology that can record voice calls, monitor text messages, and store the collected data on secure servers. Moreover, they offer Verizon message archiving that stores text messages with leading enterprise archiving vendors. Verizon archiving can assure you of safe end-to-end delivery of information. Apart from that, it supports smartphones and regular feature phones.
Here is an infographic from TeleMessage for more information.
