Barnier-Liikanen rule and Front-running: Difference between pages
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''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== | |||
* [[Conduct risk]] | |||
* [[Fixed Income, Currencies and Commodities Markets Standards Board]] (FMSB) | |||
* [[Insider dealing]] | |||
* [[Layering]] | |||
* [[Market corners]] | |||
* [[Pre-hedging]] | |||
* [[Ramping]] | |||
* [[Spoofing]] | |||
* [[Squeeze]] | |||
* [[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.
