Front-running: Difference between revisions

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imported>John Grout
(To add reference to need to distnguish pre-hedging)
imported>Doug Williamson
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* [[Squeeze]]
* [[Squeeze]]
* [[Wash trading]]
* [[Wash trading]]
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[[Category:Accounting,_tax_and_regulation]]
[[Category:Ethics_and_corporate_governance]]
[[Category:Ethics]]
[[Category:Financial_risk_management]]

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.


See also