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Brokerage Instant Messages Must Be Saved

Posted by simoniker on from the casual-bathroom-conversations-also dept.

DrEnter writes "According to an AP story on Yahoo!, the National Association of Securities Dealers (NASD) has told its members that they must keep a copy of all instant messages sent or received by employees for at least three years. This is similar to their requirements on keeping e-mail, although technically not nearly as easy. The NASD is a self-regulatory organization, and U.S. federal law requires almost all of the 5,300 U.S.-based securities firms and brokerages to be a member of it. There's a news release from the NASD concerning the requirement - it looks like the daunting technical issues have already resulted in some firms banning the use of IM completely."

4 of 265 comments (clear)

  1. What's the value? by monkey_tennis · · Score: 5, Insightful

    I struggle to see the value in this. If a broker wants to have an 'off the record' conversation they could still use their mobile phone or some other mechanism. Doesn't there come a point where you have to acknowledge that not all communication that takes place at a place of work is 'owned' (in a responsibility-for sense) by the employer?

  2. Yes they are... by alistair · · Score: 5, Informative

    Most banks already log phone calls, what is being added is the requirements to archive email and IM messaging.

    Do a quick search for "Basel 2" or "Basel ii" for more details on this. One very interesting quote I found is;

    "The Institute of International Finance has projected a total investment of US$2.25 trillion over 5 years for the 30,000 banks that will be affected, on top of systemsâ(TM) budgets, implementation costs and training. With such a huge increase in costs, this may precipitate another round of banking consolidation, especially in Asia. Basel 2 will certainly reward banks with sophisticated management and systems â" they should be able to generate higher returns on equity, and have less capital required by the market and regulators."

  3. Re:record everything by signifying+nothing · · Score: 5, Informative
    Don't get overexcited - this is only for communications with clients, not for purely internal conversations.

    The Slashdot summary says otherwise, but the press released linked to is pretty clear.

  4. Makes sense to me by jamie(really) · · Score: 5, Insightful

    Brokerage firms make deals minute to minute, and conversations with a broker are legally binding. There isnt time to fax a contract back and forth. If you phone anyone at a brokerage firm, you will be recorded. Something to remember before you phone your mate and tell them about your weekend in ibiza. I totally understand why banks would view instant messages as the 21st century equivalent of a phone converstaion. Get over it!