![]() ![]() ![]() What is unclear, however, is the frequency to which these rules are adhered to in the Chinese financial community when it comes to personal messaging platforms, such as WeChat, Facebook Messenger, and Tencent QQ. In addition, the China Securities Regulatory Commission has been enforcing breaches and increasingly fining brokers for not obtaining data around the identities of individuals who may have traded stocks via systems that are external to the firm. The country’s laws mandate reliable checks and the recording of trades to guard against excessive margin trading, marketplace manipulation, insider trading, and so forth, including trades occurring via personal messaging accounts. It is not that China does not have regulations concerning message record keeping. It does. And a boon it has been: according to Chinese securities firms, within the first year nearly 50 million such accounts were opened. This has led numerous brokerages to offer shares for their WeChat trading account services over the past couple of years to attract the burgeoning market of retail traders in the country. Indeed, personal messaging platforms for conducting financial business, such as buying and selling bonds and stocks, have become routine in China, where retail investors comprise over 85 percent of the market. To sell or buy a bond, or lend or borrow funds, all one needs to do is post on the platform’s financial groups and, if someone raises their hand, have a private conversation with them. Many Chinese financial professionals use Tencent QQ and WeChat as a more efficient way to reach prospects in lieu of making calls or sending emails. Every day it is being used by-it is worth repeating-a billion people to make online payments, chat, post pictures, and view news. WeChat has quickly become commonplace in China. The main reason Chinese brokers use WeChat is self-evident: WeChat is the “go-to” means of communication for many of its 1 billion monthly users. In the Chinese bond market, which Bloomberg pegs to be valued at around $11 trillion, major firms routinely leverage their Tencent QQ and WeChat instant message accounts to research opportunities, take orders, and everything in between. In many countries, regulators have put their foot down to stymie their financial community’s usage of private instant messaging applications. This being 2018, they also engage with their financial colleagues and accounts on their personal WeChat, Facebook Messenger, WhatsApp, Skype, Slack, and other instant messaging (IM) platforms.Īs a result, personal IM channels are increasingly becoming a headache for financial and securities regulators seeking to monitor trades, spot illegal transactions, and police financial dealings. Across the globe, traders, brokers, and bankers don’t just pick up the phone or click the email send button to conduct business. ![]()
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