Wall Street Banks Reach Deal With Regulators on Data Retention

Four of Wall Street’s biggest banks agreed to cooperate with New York regulators and retain copies of communications sent through the messaging platform known as Symphony.

The New York State Department of Financial Services was concerned that the platform would allow traders to delete or encrypt information that could be used to track evidence of rigging schemes among traders at various banks. Messaging in chat rooms is believed to have figured prominently in schemes to manipulate global exchange rates and benchmark interest rates. Deutsche Bank, Goldman Sachs, Credit Suisse and Bank of New York Mellon have agreed to keep copies of all electronic communication sent through the Symphony platform to and from one another for seven years. They have also agreed to store the duplicate copies of decryption keys for messages with independent custodians. The agreement essentially nullifies a feature initially marketed by Symphony that allowed for “guaranteed data deletion.” The system is scheduled to be introduced on Sept 15.