Thomson Reuters Replaces IM Software To Avert Wall Street Disruption - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Cloud // Software as a Service
News
7/31/2008
12:32 PM
50%
50%

Thomson Reuters Replaces IM Software To Avert Wall Street Disruption

A U.S. District Court Judge ruled the firm had to stop using its FaceTime instant messaging after failing to make a final payment to the contractor that provided it.

Thomson Reuters on Wednesday said it averted a communications crisis in the financial industry well in advance of its Aug. 1 deadline to stop using its instant message software.

It did so by building its own in-house solution.

U.S. District Court Judge Colleen McMahon ruled last week that Thomson Reuters had to stop using its FaceTime instant messaging software by Friday after failing to make a final payment to the contractor that provided it. Reuters news service had used FaceTime software for an instant messaging service it sold to traders and others in the financial industry. The software helped Wall Street insiders use instant messaging while also complying with Sarbanes-Oxley and other SEC regulations that require archiving and retrieval of electronic communications.

Reuters paid $1.3 million for a two-year contract with FaceTime but failed to make its final installment of $150,000 until after its contract expired, according to court records. The contract required final payment for permanent rights to the software and long-term storage.

Although statements in the court filings and in FaceTime news announcements indicated that the ruling would create a crisis among traders, Reuters spokesman Joe Christinat said Thursday that the company migrated to new software early this week. He said he cannot comment on statements in the lawsuit but he also said there was never an impending crisis.

Six or seven months ago, Reuters' own IT staff began developing their own software for instant messaging, Christinat said. The company created new software that is integrated with Global Relay's long-term storage, which Reuters had already been using to archive instant messages for SEC and Sarbanes-Oxley compliance, he said. FaceTime's software simply collected and stored the communications in the short-term, according to Christinat.

By Sunday, Thomson Reuters moved to a parallel system. By Tuesday, it had stopped using FaceTime, Christinat said.

"So far, the only reason customers have noticed is because it became news," he said.

FaceTime released a statement the same day Reuters stopped using its software and outlined Reuter's own court arguments to warn of an impending crisis that would "cripple" Reuters' customers.

"While we are pleased that FaceTime's intellectual property rights are protected, we are concerned about Reuters' timetable for installing replacement technology in light of its representations to the court as to its ability to provide adequate compliance protection for its customers," Kailash Ambwani, president and CEO of FaceTime Communications, said in the announcement.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
Reflections on Tech in 2019
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  12/9/2019
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
Slideshows
Flash Poll