Despite the scandal regarding Bloomberg reporters spying on clients using their terminal, there haven’t been many reports about clients actually doing anything about it.
But maybe that will change?
According to the NY Post, Goldman Sachs is considering making its own encrypted messaging system for traders using Twitter or some other custom technology to reduce its reliance on Bloomberg terminals.
This sounds very speculative and far-off, but it’s interesting that it’s being thought about.
Then yesterday, in an unrelated matter, the FT reported that thousands of Bloomberg trader messages were posted online accidentally.
And from what we hear up and down Wall Street, those messages (and the messaging function) are the most sacred, private part of the powerful terminal.
That means, in creating a messaging client, Goldman would be hitting the Bloomberg terminal where it hurts.
“There’s a lot of disruptive technology,” said one person familiar with Goldman’s thinking. “This [Bloomberg snooping] has given new energy to those ideas,” the person said.
Goldman also believes that Bloomberg may have used information from its terminals to create products that compete directly with the bank. The Post’s report specifically mentions a successful brokerage product Bloomberg created in the 1990s product called “Tradebook.”