Chinese wall

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Chinese wall

Communication barrier between financiers at a firm (investment bankers) and traders. This barrier is erected to prevent the sharing of inside information that bankers are likely to have.

Chinese Wall

Informal; the imposed lack of communication between the investment banking and brokerage services of a financial institution. The Chinese wall exists in order to prevent brokers and investment bankers working for the same company from deliberately or accidentally sharing inside information that could lead to illegal insider trading. The Chinese wall protects both the financial institution at large and the individual investment bankers and brokers.

Chinese wall

An imaginary separation placed between a brokerage firm's investment banking business and its trading and retail business. A Chinese wall prevents investment bankers who frequently are privy to information that could substantially influence the price of a client's securities from leaking that information to the firm's traders and sales personnel. The exchange of such information is legally prohibited.

chinese wall

the segregation of the related activities of a financial institution in order to protect the interests of its clients. For example, a stock market firm could be responsible for ‘making a market’ in a particular share (see MARKET MAKER), 'while at the same time offering investment advice to clients to purchase this share, bringing with it the danger that the advice given will not be impartial.

Chinese wall

the segregation of the stockbroking, jobbing (see MARKET MAKER), fund management, etc., activities of a financial institution in order to protect the interest of its clients. For example, the same institution could be responsible for making a market in a particular financial security while at the same time offering investment advice to clients to purchase this security with the danger that the advice given will not be impartial. See CITY CODE.
References in periodicals archive ?
We needed a CRM solution that would help us share important relationship information among our investment professionals, manage our regulatory disclosure obligations and at the same time respect our Chinese wall restrictions," said Tony Kyte, Bridgewell's head of IT.
Closing gaps in Chinese Walls is a daunting task, the Report states.
The Report states that to adequately monitor Chinese Wall compliance, technology is needed to track patterns and connect relationships between touch points spread over millions of pieces of fast-flowing information.
Ms Burns said: "The point is these Chinese walls here are supposed to be strong and secure.
Good to see Chinese Walls still alive and well at Citigate.
It is astonishing and deeply worrying that Royal Mail has had to be told about the need for Chinese walls.
Chinese Walls at Bell Lawrie Wise Speke should make contact between the corporate advisory and broking departments impossible, not to say illegal.
Third Party Support for Chinese Walls: Utilizing new server-side APIs, MindAlign can be integrated with third-party systems responsible for enforcing communications controls across Chinese Walls.
This decision confirms the necessity of Chinese Walls within investment banks and guarantees that analysts will henceforth be free to reach their own conclusions.
The importance of safeguarding the principle of Chinese Walls cannot be understated.
Holes develop in Chinese Wall preventing analyst conflicts," read a headline (Financial Advisor Magazine, August, 2001).
In theory, there is an impenetrable Chinese Wall between the two to prevent privileged, inside information from leaking.