4 ms·
Not all front-running is illegal, see this article which discusses a few examples, including quote matching and order anticipation: https://blogs.cfainstitute.o
by tanderson92 7y ago
Not all front-running is illegal, see this article which discusses a few examples, including quote matching and order anticipation: https://blogs.cfainstitute.org/investor/2013/04/24/what-to-do-about-high-frequency-trading/ https://blogs.cfainstitute.org/investor/2013/04/24/what-to-d...
Front-running is very common in bond trading.
- tryptophan 7y agoQuote from your article: >HFT greatly reduces average trading costs for investors They are market-making, which is something else entirely than front-running.
- logifail 7y ago> They are market-making... It's often claimed that HFT help make markets more liquid and efficient, "which helps everyone". It's much less than clear whether the presence of HFT helps make an entire market more efficient, or whether just the HFTs are able to benefit.
- tanderson92 7y agoSource? I can quote the author's book on microstructure supporting my position that it is not something else entirely.