Banks take on Bloomberg with their own messaging service

Eight investment banks are launching an ambitious assault on Bloomberg’s grip on daily communications in financial markets with the start of a free message service.

Markit, the UK data provider, will operate an industry-wide central directory to connect the messaging systems of Thomson Reuters, Goldman Sachs, Deutsche Bank, Citigroup, Credit Suisse, Barclays, JPMorgan Chase, Morgan Stanley, Bank of America Merrill Lynch and interdealer broker GFI Group.

Instant messaging on private networks is a principal way participants in financial markets swap the information that drives trading. Yet most systems operate independently. The move to connect separate systems into a free community comes as financial services companies explore ways to share increasing IT costs and compliance rules.

It is expected to put pressure on Bloomberg, the US financial data provider, whose distinctive, secure but expensive black terminals dominate chat in financial markets.

– (Copyright The Financial Times Limited 2013)