According to reports, IHS Markit Ltd (NASDAQ:INFO) is set to launch an open messaging platform aimed at improve the links between Wall Street firms and their clienteles.
This introduction of Markit Relationship Services is the big sign yet that banks and others are looking for ways to de-emphasize communication systems that they view as heavy, costly and open to abuses.
“It could ultimately end up being the LinkedIn of the financial industry,” said Perry Vais, co-head of quantitative strategy at hedge fund BlueMountain Capital Management in New York.
Financial data provider Markit announced that Thomson Reuters had joined its new network as a founding customer, along with eight large lenders, all of whom co-own Markit. The banks that have signed on are Bank of America Merrill Lynch, Barclays PLC, Citigroup (C), Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan Chase & Co. and Morgan Stanley.
Meanwhile Thomson Reuters’ current instant messenger service, Eikon Messenger, comes with a massive user’s base of above 200,000 economic professionals from more than 170 countries that will be added to the new network.
“The once thing the industry said is they don’t want another closed network, they want the industry to come together and find ways to drive efficiency,” said Lance Uggla, chief executive of Markit, in an interview.
He added: “It’s not replacing Bloomberg LP [messaging], it’s giving connectivity to people across the firms who don’t have access to those expensive channels.”
The introduced technology can be combined into any users’ existing internal messaging tools, Markit said, letting the directory to be rapidly enlarged and users to control who accesses their staff and what they can share.
Furthermore just the two users interacting on the system can witness each message, as the text will be encrypted once they leave the sender. Moreover the company said IHS Markit Ltd (NASDAQ:INFO) will not be able to scrape or store information contained in the messages for use in its own data businesses.