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No it isn't. You know why front running isn't illegal? Because it keeps happening and companies keep getting fined for it. A "law" that allows you a merely pay

No it isn't. You know why front running isn't illegal? Because it keeps happening and companies keep getting fined for it. A "law" that allows you a merely pay a fine isn't a law, its a revenue-generating procedure. Murder is illegal. You can't pay $500,000 to the authorities and then go on about your business. For a law to have any weight, you have to be inconvenienced regardless of your financial status.

koheripbal 6y ago
> You know why front running isn't illegal? Because it keeps happening and companies keep getting fined for it. This is not a logical sentence. They are obviously getting fined because it's illegal. The traders involved are also terminated, fyi. All banks are required to submit automated reports on Front Running detection algorithms daily to the regulators. Every trade is evaluated by the compliance systems. If you think the fines are not big enough or that the algorithms are missing things, then make that more logical argument. Stay away from hyperbole because it discredits you.
- _jal 6y ago
  > If you think the fines are not big enough With crimes like these, it is nearly definitional. It is trivial to put a price on the value of an action like this; if the fine for the action is less than it grosses, it is just a tax.
  - mLuby 6y ago
    > if the fine for the action is less than it grosses, it is just a tax. And not just the actions regulators catch, but the others too. do { new Crimes() } while ( fine(Crimes.detected) < profit(Crimes.all) )
- berns 6y ago
  > This is not a logical sentence It's illegal by definition. But since they can pay a fine for a net gain, you can say that they legally profit from doing something illegal.
  - koheripbal 6y ago
    Which is why the fines are always greater than the net gains. Obviously. Do you think the SEC is full of morons?
    - pueblito 6y ago
      I’m sure the SEC is full of extremely intelligent and well educated people. I’m equally sure that most of them are corrupt and are part of the revolving door.
    - girvo 6y ago
      That’s only true if the SEC catches all instances of it by a particular company, no?
    - cbozeman 6y ago
      > Which is why the fines are always greater than the net gains. The $3 billion in fines Wells Fargo paid versus the multiple billions it made from 2002-2015. The bank has almost $2 trillion in assets as of 2020. > Do you think the SEC is full of morons? No, worse. Cowards. Entirely too many see the SEC as a pathway to a high-paying job on Wall Street. You learn the ins and outs of compliance and go from a GS-8 - GS-13 making $70,000 - $150,000 a year, to making $1 million a year helping these banks, hedge funds, and other investors sidestep regulations by the most narrow of line-toeing.
      - koheripbal 6y ago
        > $3 billion in fines Wells Fargo paid This had ZERO to do with Front Running.
smabie 6y ago
What fines? No real firms front run. Market makers are not front running your orders. This does not happen
- ironyman 6y ago
  There's a lot of victimhood mentality going on right now. Everything is being blamed on Wall Street and market makers 'ripping off the little guys'. I believe you 100% but sadly you're not going to get through to them.

koheripbal 6y ago

> You know why front running isn't illegal? Because it keeps happening and companies keep getting fined for it. This is not a logical sentence. They are obviously getting fined because it's illegal. The traders involved are also terminated, fyi. All banks are required to submit automated reports on Front Running detection algorithms daily to the regulators. Every trade is evaluated by the compliance systems. If you think the fines are not big enough or that the algorithms are missing things, then make that more logical argument. Stay away from hyperbole because it discredits you.

_jal 6y ago
> If you think the fines are not big enough With crimes like these, it is nearly definitional. It is trivial to put a price on the value of an action like this; if the fine for the action is less than it grosses, it is just a tax.
- mLuby 6y ago
  > if the fine for the action is less than it grosses, it is just a tax. And not just the actions regulators catch, but the others too. do { new Crimes() } while ( fine(Crimes.detected) < profit(Crimes.all) )
berns 6y ago
> This is not a logical sentence It's illegal by definition. But since they can pay a fine for a net gain, you can say that they legally profit from doing something illegal.
- koheripbal 6y ago
  Which is why the fines are always greater than the net gains. Obviously. Do you think the SEC is full of morons?
  - pueblito 6y ago
    I’m sure the SEC is full of extremely intelligent and well educated people. I’m equally sure that most of them are corrupt and are part of the revolving door.
  - girvo 6y ago
    That’s only true if the SEC catches all instances of it by a particular company, no?
  - cbozeman 6y ago
    > Which is why the fines are always greater than the net gains. The $3 billion in fines Wells Fargo paid versus the multiple billions it made from 2002-2015. The bank has almost $2 trillion in assets as of 2020. > Do you think the SEC is full of morons? No, worse. Cowards. Entirely too many see the SEC as a pathway to a high-paying job on Wall Street. You learn the ins and outs of compliance and go from a GS-8 - GS-13 making $70,000 - $150,000 a year, to making $1 million a year helping these banks, hedge funds, and other investors sidestep regulations by the most narrow of line-toeing.
    - koheripbal 6y ago
      > $3 billion in fines Wells Fargo paid This had ZERO to do with Front Running.

smabie 6y ago

What fines? No real firms front run. Market makers are not front running your orders. This does not happen

ironyman 6y ago
There's a lot of victimhood mentality going on right now. Everything is being blamed on Wall Street and market makers 'ripping off the little guys'. I believe you 100% but sadly you're not going to get through to them.