front running

front running
Entering into an equity trade, options or futures contracts with advance knowledge of a block transaction that will influence the price of the underlying security to capitalize on the trade. This practice is expressly forbidden by the SEC. Traders are not allowed to act on nonpublic information to trade ahead of customers lacking that knowledge. Bloomberg Financial Dictionary
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A situation 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. Exchange Handbook Glossary
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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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   1) An illegal practice whereby a trader deals on his own behalf ahead of carrying out a client's order to buy or sell shares or other financial instruments, when he knows that client's order is likely to change prices, or move the market.
   2) Trading in shares by a brokerage house ahead of publication of its own research report which has not yet been widely disseminated.

Financial and business terms. 2012.

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Look at other dictionaries:

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  • front-running — frontˈ running noun A form of insider dealing on the Stock Exchange in which traders make deals for themselves before placing customer orders that are large enough to affect prices • • • Main Entry: ↑front …   Useful english dictionary

  • front-running — adjective most likely to win a competition, game, or election …   Usage of the words and phrases in modern English

  • 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 * * * front running ˈfront running …   Financial and business terms

  • Front-Running — Die Praxis des Front Running bezeichnet im Börsenhandel das Ausnutzen des vertraulichen Wissens um die Handelsstrategie des Mandanten (vor der Durchführung der in Auftrag gegebenen Transaktion) durch den Vertreter des ausführenden Instituts zum… …   Deutsch Wikipedia

  • Front Running — Die Praxis des Front Running bezeichnet im Börsenhandel das Ausnutzen des vertraulichen Wissens um die Handelsstrategie des Mandanten (vor der Durchführung der in Auftrag gegebenen Transaktion) durch den Vertreter des ausführenden Instituts zum… …   Deutsch Wikipedia

  • Front running — Le front running est une technique illégale de manipulation boursière qui consiste pour un courtier à utiliser l information de ses clients pour s enrichir. Par exemple, si un client est sur le point de placer un important ordre d achat pour une… …   Wikipédia en Français

  • 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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