Hedging the Risk of Instant Messaging

摘要

Though instant messaging (IM) is a fast and convenient communications format, buy-side firms are still cautious about the regulatory implications of using the technology because they lack the compliance tools to archive and retrieve the content. Under SEC rule 17a-4, instant messages must be archived and retrievable and can't be edited or changed. Even hedge funds are shying away from using instant messaging to send orders to their brokers because there has been a lack of technology to create an audit trail. "If I did not have the ability to archive these messages, I probably would not use it," says Angie Kim, chief financial officer of Core Fund Solutions, a San Francisco-based company that oversees four hedge funds.