An open source API will allow developers to attach services to the software platform that they are using. This can help even on platforms that emphasize security and confidentiality.
A new communications platform has been developed for communication between financial professionals. Called ‘Symphony’, the platform is encrypted to provide maximum security from hackers. Because the financial industry is heavily regulated, financial institutions are required to store all communications for a defined number of years. Regulators expressed concern that the messaging system would fail to store the messages for the required number of years, and that the encryption system would be used to prevent regulators from accessing the content of the messages.
Symphony reached a deal with the New York Department of Financial Services, agreeing to store the information for seven years. Four banks, customers of Symphony, agreed to turn over copies of their encryption keys to an independent custodian. Regulators will be able to decrypt messages upon request. Symphony has an open API, which will enable developers to attach services to the message platform.
Takeaway:
- Content storage restrictions need to meet the needs of the end user, including the obligations imposed on the user by regulatory bodies.