front-running
Taking early lead
Front-running is trading on advance knowledge of pending orders that will move a market.
A broker who knows a client is about to place a large buy order might purchase shares first, then profit when the client's order drives up the price.
The practice is illegal in securities markets.
More broadly, front-running describes any exploitation of privileged information about others' imminent actions: The leaked memo let competitors front-run our product launch.
Illegal securities transactions using nonpublic information
- market manipulationArtificially distorting asset prices
- securities fraudIllegal financial market deception
- spoofingFraudulent imitation
- layeringForming successive strata
scalping · high-frequency trading · arbitrage · queue jumping · execution · brokerage · algorithmic trading · tick
Unearned competitive benefit
- exploitationSelfish use of others
- betrayalBreaking of trust
- breach of trustViolation of confidence
- fiduciary dutyObligation to act loyally
conflict of interest · dishonesty · deception · manipulation · impropriety · self-dealing · confidentiality · misuse
Stock market regulator
- complianceAdhering to requirements
- enforcementCompelling compliance with rules
- securities lawRules governing tradable investments
- oversightSupervision or inadvertent omission
FINRA · penalties · sanctions · prohibition · surveillance · monitoring · disclosure · reporting
Unproven formal claims
- probeThorough examination or tool
- whistleblowerInsider who reports misconduct
- exposéInvestigative journalism piece
- settlementResolved dispute or colony
conviction · indictment · testimony · hearing · accountability · restitution · disgorgement · ban
insider trading
Illegal securities transactions using nonpublic information
- market manipulationArtificially distorting asset prices
- securities fraudIllegal financial market deception
- spoofingFraudulent imitation
layering · scalping · high-frequency trading · arbitrage · queue jumping · execution · brokerage · algorithmic trading · tick · liquidity
unfair advantage
Unearned competitive benefit
- exploitationSelfish use of others
- betrayalBreaking of trust
- breach of trustViolation of confidence
fiduciary duty · conflict of interest · dishonesty · deception · manipulation · impropriety · self-dealing · confidentiality · misuse · bad faith
SEC
Stock market regulator
- complianceAdhering to requirements
- enforcementCompelling compliance with rules
- securities lawRules governing tradable investments
oversight · FINRA · penalties · sanctions · prohibition · surveillance · monitoring · disclosure · reporting · investigation
allegations
Unproven formal claims
- probeThorough examination or tool
- whistleblowerInsider who reports misconduct
- exposéInvestigative journalism piece
settlement · conviction · indictment · testimony · hearing · accountability · restitution · disgorgement · ban · termination
front-runningtrailing
Following behind something
lagging · bringing up the rear · falling behind · lagging behind · straggling
front-runningcoming from behind
Surging after trailing
comeback · rallying · fighting back · closing the gap · catching up
front, running, runner, runners, fronts, fronted, fronting, frontal, frontage