Front Running
Compliance
Front running is trading ahead of a known large order to profit from the price impact it will cause. It is illegal in regulated markets.
Front running is the practice of trading ahead of a known incoming large order to profit from the price movement that order will cause. In regulated markets it is illegal for brokers, traders with material non-public information, and anyone with fiduciary duty to clients.
In prop trading, front running rules are part of the firm''s compliance framework and apply to behavior such as front-running other traders on the same desk or exploiting non-public information about firm order flow.
Keep going