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 ?
See also R M Garratt and A S Stavrianou, 'Solicitors--Duty Not to Act against Former Client--"Chinese Wall"' (1991) 65 Australian Law Journal 229, 230.
And media owners have increasingly breached the "Chinese wall." One prominent journalist, quitting his job as editor of The Chicago Tribune, said the "corporate takeover" of the news had killed journalism.
Reversing, the Iowa Supreme Court held that a law firm's implementing a Chinese wall is insufficient to prevent the disclosure of confidential information.
His first fictive works began to appear in 1934 with Jurg Reinbart, and the plays Die cbinesische Mauer (The Chinese Wall), and When the War Was Over in 1949 raised some eyebrows.
Spayd points out that often there exists "the old Chinese wall" between the news and editorial departments.
Among the items to go was a red Chinese wall panel, measuring 12ft x 5ft, with a gold phoenix and dragon design.
It's about Sisters Suzy Bartuss and Jodie Guisinger, oncecloistered runs on horseback and in awe of Montana's Chinese Wall, a 12-mile-long, 1,000-foot-high escarpment like a granite jewel in the Continental Divide's tiara.
517, when the law lords held that an ad hoc Chinese wall wasn't enough, that it "needs to be an established part of the organizational structure of the firm," to quote Lord Millett.
of Times Mirror, recently forced out Los Angeles Times editor Shelby Coffey by deliberately dismantling the so-called "Chinese wall" between the paper's editorial and business interests.
However, elminating the "Chinese Wall" which previously existed between these two organizations has vendors sweating.
does the theory invite the critic to indulge what Jarrell called 'that strange sort of Law French which [he or she] now can set up like a Chinese Wall between himself and the lay (i.e.
ed., 1972; The Chinese Wall ) and the bleak Als der Krieg zu Ende war (1949; When the War Was Over).

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