The messaging service out to dethrone Bloomberg just took a big hit from Wall Street's top cop

Wall Street’s top cop just scored a big win over the messaging system that’s out to dethrone Bloomberg.

Symphony, the messaging system backed by a bevy of big name Wall Street firms, is changing its policies after meeting with New York’s Department of Financial Services, led by acting superintendent Anthony Albanese.

The changes follow concerns, expressed by the NYDFS, that features such as “Guaranteed Data Deletion” could hinder investigations into wrongdoing on Wall Street.

Symphony will now retain copies of electronic communications sent through its platforms for seven years.

The banks will also store duplicate copies of decryption keys with independent entities outside of the financial companies, according to a statement from DFS on September 14.

The rulings apply to four financial firms – Goldman Sachs, Deutsche Bank, Credit Suisse and Bank of New York Mellon – which are regulated by the NYDFS and are part of the Symphony consortium. NYDFS said it believes the requirements should apply to all firms using Symphony in future.

“This is a critical issue since chats and other electronic records have provided key evidence in investigations of wrongdoing on Wall Street,” Albanese said in a statement. “It is vital that regulators act to ensure that these records do not fall into a digital black hole.”

The news comes at a critical time in Symphony’s development. After months of touting its product and raising cash at a reported $US1 billion valuation, the startup had orchestrated an international product launch set to take place on September 15 in New York and in London.

Business Insider reached out to Symphony for comment; the company did not respond in time for publication.

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