4 ms·
I haven't read Flash Boys but if it describes HFT as front running then it's just incorrect. "Front running" doesn't just mean "getting there quicker than some
by tomatocracy 6y ago
I haven't read Flash Boys but if it describes HFT as front running then it's just incorrect.
"Front running" doesn't just mean "getting there quicker than someone else". It is a specific conflict of interest problem where the same people or firm are acting in more than one capacity - agent and principal or agent for different parties - at the same time (eg I see large customer order coming in then trade for myself/my firm before I trade for the client, potentially moving the market for them which would hurt them if our trades are both in the same direction).