front-running

front-running
A type of misuse of information, where the employees of a brokerage firm or a bank trade in equity shares using price-sensitive information that is privately available to the firm. London Stock Exchange Glossary

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front-running ˈfront-running noun [uncountable]
FINANCE when a share dealer takes an order from a client to buy a company's shares, but buys shares in the same company for their own account before carrying out the order. As an order often makes share prices rise, the dealer can then sell the shares they bought at a profit:

• The five men were found to have systematically practised front-running and were banned for life from trading on London's financial markets.

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front-running UK US noun [U] STOCK MARKET
► the usually illegal act of a dealer buying shares in a company after they have had an order from a customer to buy a large number of the same shares, which is likely to have the result that the shares will go up in price. The dealer can then make a profit by selling the shares that they have bought: »

Front-running is when a broker places trades for his own account before fulfilling orders previously submitted by his customer.


Financial and business terms. 2012.

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Look at other dictionaries:

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  • Front Running — The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients have been given the information. For example, analysts and brokers who buy up shares in a company just before the… …   Investment dictionary

  • front-running —    dealing illegally as an insider    You get your order in before that of your client:     The alleged offences include front running in which dealers hurriedly execute orders for themselves, knowing prices will move in their favour by client… …   How not to say what you mean: A dictionary of euphemisms

  • front-running — /frʌnt rʌnɪŋ/ noun US the act of buying shares or options because you have heard of a large order to purchase which is coming ● They were accused of persistent front running …   Dictionary of banking and finance

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