Merrill Lynch on Friday will ban access to outside e-mail services from popular sites such as America Online, Yahoo and MSN

Merrill Lynch on Friday will ban access to outside e-mail services from popular sites such as America Online, Yahoo and MSN, in response to regulatory requirements and to protect its network from viruses, according to a company memo. The policy shift will affect the 48,000 Merrill Lynch employees worldwide who use the company's Internet network. A Merrill Lynch representative said the policy is an extension of existing bans in departments such as the trading desk. Other investment banks, such as Goldman Sachs, have similar companywide policies. Representatives from AOL, MSN and Yahoo declined to comment. The move by Merrill Lynch is not unprecedented; other major corporations, especially those in financial services, are reining in access to outside Web and Internet services. Investment banks and brokerage houses have taken steps to control instant messaging applications from AOL, MSN and Yahoo as well. Financial firms have demanded more security and accountability features inside these IM clients, causing many companies to develop enterprise IM products. In April 2002, a group of top investment banks including Merrill Lynch, Salomon Smith Barney, J.P. Morgan Chase, Credit Suisse First Boston, Goldman Sachs, Lehman Brothers, Morgan Stanley and UBS Warburg agreed to use technology from Communicator to provide secure IM.