Front-running: Difference between revisions
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imported>John Grout (To add reference to need to distnguish pre-hedging) |
imported>Doug Williamson m (Categorise.) |
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Revision as of 09:55, 28 February 2018
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.