Front-running: Difference between revisions
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==See also== | ==See also== | ||
* [[Conduct risk]] | * [[Conduct risk]] | ||
* [[ | * [[Fixed Income, Currencies and Commodities Markets Standards Board]] (FMSB) | ||
* [[Insider dealing]] | * [[Insider dealing]] | ||
* [[Layering]] | * [[Layering]] | ||
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.
