Front-running: Difference between revisions

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''Conduct risk - financial markets''
''Conduct risk - financial markets''


Front-running is the fraudulent practice of buying securities or making other trades to take advantage of knowledge of a future event, for example a large purchase order from a client.
In financial services, front-running is the unethiclal and likely criminally fraudulent practice of buying securities or making other trades to take advantage of private/confidential knowledge of a future event, for example a large purchase order from a client - an order for currency, shares, commodities, etc.
 
Distinguishing front-running (unacceptable, probably illegal) from [[pre-hedging]] (probably aceptable, even legal) is important for all concerned, but can be very difficult.  




==See also==
==See also==
* [[Conduct risk]]
* [[Conduct risk]]
* [[FMSB]]
* [[Fixed Income, Currencies and Commodities Markets Standards Board]] (FMSB)
* [[Insider dealing]]
* [[Insider dealing]]
* [[Layering]]
* [[Layering]]
* [[Market corners]]
* [[Market corners]]
* [[Pre-hedging]]
* [[Ramping]]
* [[Ramping]]
* [[Spoofing]]
* [[Spoofing]]
* [[Squeeze]]
* [[Squeeze]]
* [[Wash trading]]
* [[Wash trading]]
[[Category:Context_of_treasury]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Ethics_and_corporate_governance]]
[[Category:Ethics]]
[[Category:Financial_risk_management]]

Latest revision as of 17:17, 25 June 2022

Conduct risk - financial markets

In financial services, front-running is the unethiclal and likely criminally fraudulent practice of buying securities or making other trades to take advantage of private/confidential knowledge of a future event, for example a large purchase order from a client - an order for currency, shares, commodities, etc.

Distinguishing front-running (unacceptable, probably illegal) from pre-hedging (probably aceptable, even legal) is important for all concerned, but can be very difficult.


See also