Big banks sign up to new Thomson Reuters chat network

The open platform network, called Markit Collaboration Services, was launched on Monday. It will operate an industry-wide central directory switchboard to connect messaging systems, allowing members to chat with one another regardless of the proprietary messaging technology that each firm uses. Messages on the new network are encrypted and not stored.

Bloomberg messaging, a closed network exclusively for users of Bloomberg terminals, is the most popular form of chat on Wall Street, and often cited as one of the reasons banks are willing to pay around $20,000 a year for a subscription to a Bloomberg terminal.

Markit and Thomson Reuters said they hoped their open messaging network will attract banks that want to chat with their clients or other financial institutions but cannot currently do so because they are on different messaging systems.

David Craig, president of Thomson Reuters’ Financial & Risk division, said one of the challenges facing banks is that their messaging systems do not always talk to one another. “That creates costs and complexity,” he said.

The eight banks that have agreed to join the network are Goldman Sachs, JPMorgan Chase, Deutsche Bank, Bank of America Merrill Lynch, Barclays, Citigroup, Credit Suisse and Morgan Stanley. They collectively employ more than a million people worldwide. ■