Front-running: Difference between revisions
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imported>Doug Williamson (Link with Ramping page.) |
imported>John Grout (To add reference to need to distnguish pre-hedging) |
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''Conduct risk - financial markets'' | ''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. | |||
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* [[Layering]] | * [[Layering]] | ||
* [[Market corners]] | * [[Market corners]] | ||
* [[Pre-hedging]] | |||
* [[Ramping]] | * [[Ramping]] | ||
* [[Spoofing]] | * [[Spoofing]] | ||
* [[Squeeze]] | * [[Squeeze]] | ||
* [[Wash trading]] | * [[Wash trading]] | ||
Revision as of 18:43, 31 October 2017
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.
