What is Chinese wall wrt to Trading?

‘Chinese wall’ w.r.t. financial world means maintaining client confidentiality or maintaining a barrier between two or more groups of a company. This is crucial to any firm, particularly large multi-service businesses.

‘Chinese Wall’ w.r.t. trading is in connection with Insider Trading. The ‘Wall’ is thrown up so that vital information of a company does not fall into wrong hands, who may use the information for illegal/ selfish purposes.

More on this, read here.

2 Likes