Investment bank Jefferies Group has taken Bloomberg Vault for to manage the enormous volumes of information which Jefferies must keep and make accessible, often at short notice.
For many companies, information governance appears as optional, something for which time and budget may be found one day. If you are a large company in the financial sector, you do not have the option of deferring the task. Legal and regulatory demands require near-instant access to information about past decision-making and very quickly.
The conventional expression “record-keeping” is barely adequate to describe the duty to provide pre-and post-trade communications about transactions, including recorded calls, emails and instant messages.
Quite apart from the specialist nature of this task and the speed with which it must be performed, the volumes are enormous, the data security implications are very significant and the downside for getting it wrong can be very high.
Bloomberg is perhaps better placed than anybody else to provide the speed, scalability and security required in this context, since it is already the de facto communications and archiving tool for most financial institutions. It is an obvious extension of Bloomberg’s data provision and data management functions that they should be brought in to handle the archiving and eDiscovery obligations arising from these high volumes of specialist data.
Such companies may be required to comply with trade reconstruction requests under the Dodd-Frank Act within 72 hours of demand being made, including communications of whatever kind from before, during and after the transaction. If you can comply with that, you can comply with anything.
There is a news feed item about Bloomberg’s Jefferies deal here. The Bloomberg site about Bloomberg Vault is here, explaining how the world’s largest private network addresses information management, regulatory compliance and eDiscovery obligations of companies like Jefferies. Multiple email platforms, social media, instant messaging, audio and the rest are all catered for, and there is a compelling argument for putting it all in one hand – as long as the infrastructure and support is there, which it clearly is in Bloomberg’s case.
Not the least of the attractions is Bloomberg Local Vault. I spend quite a lot of my time talking and writing about the privacy implications which arise when litigation or regulatory investigations raise conflicts between very wide discovery obligations on the one hand and tightly restrictive privacy and data protection laws in various jurisdictions.
These present apparently insuperable problems for many companies, who must identify potentially discoverable material and then find a way through the conflicting duties – and quickly. The key to Bloomberg Local Vault lies in its name – data, including data indexes, are archived in-country, in systems which are simultaneously stand-alone and integrated; search requests can be distributed across Bloomberg’s private network but local rules can be applied to them, managing the response appropriately.
The Bloomberg Vault page includes two videos. One is a webinar given by Alan Daley from Gartner and Harald Collet of Bloomberg which describes what the problem is. The other is a short summary of how Bloomberg Vault addresses the issues which arise.