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Firewall

   Also found in: Dictionary/thesaurus, Acronyms, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
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.

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


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