The agreement between DFS and the consortium highlights an important truth about doing business in the financial services sector - or really, in any regulated industry.
(PRWEB) September 25, 2015
ColoGuard, one of the foremost colocation providers in New York City, today offered some insight on a recent agreement regarding recordkeeping for the Symphony messaging system, an application born out of a consortium of 14 financial institutions.
Viewed by many as a direct competitor to the communications tools provided by Bloomberg and Thomson Reuters, Symphony came to the attention of regulatory agencies, due to some of its built-in features, such as its promise of guaranteed data deletion, Reuters reported. Many expressed concern that the platform could prove an obstacle to regulatory investigations. Last week, however, New York State’s Department of Financial services reached an accord with Deutsche Bank, Credit Suisse, Goldman Sachs and the Bank of New York Mellon.
The banks have agreed to retain copies of their chat messages for seven years, while also storing duplicates of the decryption keys for said messages with a third party.
“The agreement between DFS and the consortium highlights an important truth about doing business in the financial services sector - or really, in any regulated industry,” explained Ruben Magurdumov, vice president at ColoGuard. “It’s that proper recordkeeping and compliance are both essential. They exist not simply to protect the client, but also the company.”
“For example,” he continued, “what happens if talks about a merger end up being leaked to a third party? What happens if a client attempts to sue a bank on hearsay, and they can’t find correspondence records related to the case?”
“Information - gathering it, collecting it, and ensuring access to it - is central to success in finance,” he concluded, adding that ColoGuard offers a full suite of colocation services designed to for the facilitation of compliant recordkeeping.
ColoGuard Enterprise Solutions was born out of the increasing need for affordable enterprise colocation solutions. For nearly 12 years, ColoGuard has been a privately held colocation facility, based in the heart of Brooklyn, NY, just minutes from Manhattan. With a state-of-the-art, HIPAA and SSAE 16 compliant data center, ColoGuard’s goal is to provide affordable enterprise colocation solutions for companies of all sizes. ColoGuard’s facility offers diverse network routes via dark fiber, 24/7/365 on-site technical support, and prices and services unmatched by competitors.
Data center tours are available at http://www.colocationguard.com/data-center/data-center-tour