Securities Markets:

Clearly Defined 'Chinese Wall' Standards Have Been Issued

GGD-91-115: Published: Aug 21, 1991. Publicly Released: Sep 20, 1991.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed Securities and Exchange Commission (SEC) oversight of broker-dealer Chinese Walls, which are the policies and procedures for deterring and detecting the abuse of material, nonpublic information (MNPI) through insider trading.

GAO found that: (1) clearly defined standards have been developed, which consider the nature of a broker-dealer's business and are sufficiently detailed for broker-dealers to use in establishing Chinese Walls, and for SEC and the self-regulatory organizations to use in assessing compliance with the Insider Trading and Securities Fraud Enforcement Act of 1988 (ITSFEA); (2) the standards established address each of the minimum requirements that SEC identified in its March 1990 report; (3) the standards apply to New York Stock Exchange and National Association of Securities Dealers members which include all registered broker-dealers doing securities business with the public, which accounts for 99 percent of all securities business revenues; (4) the other exchanges are developing standard procedures or forms to help their broker-dealer members comply with ITSFEA Chinese Wall requirements; and (5) all exchanges will require their members to review employee securities trading for MNPI abuses.

Sep 29, 2017

Sep 12, 2017

Sep 7, 2017

Apr 19, 2017

Mar 29, 2017

Feb 24, 2017

Dec 29, 2016

Dec 15, 2016

Nov 15, 2016

Looking for more? Browse all our products here