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 ?
In our proposal, we compromise on the Chinese Wall policy.
Gillard J called the proposed Chinese wall 'a Dutch dyke; a good barrier to water but involving the ever present risk of seepage leading to a leak.
there is no Chinese wall over which a grapevine cannot grow.
Hollander and Salzedo describe a Chinese Wall as `an information barrier within the firm which is intended to ensure that information available to or known by certain members of the firm is not available to other members of the firm.
And he surely does not know that beneath this Chinese wall, yet another psychological conflict lies buried.
One's final impression, however, is that Kaplinski, in striving to level the vertical opposition between Good and Evil, at the same time gradually erects a horizontal opposition, a kind of new Chinese wall between East and West.
Aussie Rules tracks the leader with two admirable early representatives - National Stakes winner Dinkum Diamond and unbeaten French-trained filly Chinese Wall - contributing towards a handsome earnings haul of pounds 96,062.
The England captain tested his range with another free-kick which breached the Chinese wall, but this time the shot drifted wide of the post.
But with 14 minutes gone he more than made amends as he battered a shot past the Chinese wall that would have brought down the Great Wall itself.
The ability to enforce Chinese wall security policies for access to applications and data across organizational units for compliance
The horse in question, Chinese Wall, scored on her debut last month over 5f at Maisons-Laffitte.
Any information we get - there's a Chinese wall around us.

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