Automated Wall-Crossing: Improving Compliance and Efficiency

Wall-crossing is a crucial aspect of finance, particularly in the investment banking industry.

“Wall-crossing” in the context of MAR basically refers to conducting a market sounding involving disclosure of inside information to the investor-side about a listed security. This “need-to-know” concept entails a process in many steps. The aim is to preserve confidentiality to the extent reasonably possible and seek to avoid illicit trading. The term stems from the traditional “Chinese wall” in an investment bank, limiting information internally between the corp side and the broker/trader side.

Traditionally, wall-crossing has been a manual and time-consuming process that involves multiple stakeholders, including legal and compliance teams. However, with the advancements in technology, there is a growing trend towards automating wall-crossing processes. In this blog post, we will explore the benefits of automated wall-crossing and how it can improve compliance and efficiency.

What is Automated Wall-Crossing?

Automated wall-crossing involves the use of technology to streamline the process of sharing inside and confidential information with individuals who are not already privy to it. The technology replaces internal spreadsheets and legacy CRMs, providing all stakeholders with an end-to-end compliance framework for managing wall-crossings and market soundings more efficiently.

The benefits of automated wall-crossing are numerous. Firstly, it helps to ensure compliance with relevant laws and regulations by providing standardized procedures for all stakeholders to follow. All necessary communication is automatically captured and easily accessible by compliance, reducing the need to search for information manually.

Secondly, automated wall-crossing significantly increases efficiency by reducing the time and effort required to share confidential information with investors. The technology streamlines the process and eliminates bottlenecks, allowing firms to share confidential information quickly and efficiently.

Lastly, automated wall-crossing enhances security by ensuring that only authorized individuals have access to confidential information. The tracking and monitoring capabilities of the technology can help identify any unauthorized access or misuse of information.

Conclusion

Automated wall-crossing is an emerging trend in the financial industry that has the potential to significantly improve compliance, efficiency and increase the deal-flow. By automating the process of sharing confidential information, firms can ensure only authorized individuals have access to the information, while also reducing the time and effort required to share it. 

An increasing number of market participants have already adopted the new technology, and it’s time for your firm to join them. Don’t miss out on the potential to significantly improve compliance, efficiency and increase the deal-flow. Visit our product site or book your demo to see how it works!