Firewall (redirected from Firewall (networking))

Firewall

Legal barriers that prevent both the transference of inside information and the performance of financial transactions between commercial and investment banks.

Notes:

Restrictions placed on collaborations between banks and brokerage firms under the Glass-Steagall Act of 1933, acted as a form of firewall.

This works similarly to fire wall software and hardware used in preventing or limiting outside access to a company's internal servers and networks.

See also: Broker, Broker-Dealer, Chinese Wall, Commercial Bank, Dealer, Glass-Steagall Act, Inside Information, Investment Bank

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Firewall

The legal barrier between banking and broker/dealer operations within a financial institution created to prevent the exchange of inside information.