front running
noun1
Business, Finance The illegal practice of a stockbroker who, on receiving a large client order, places an order for his or her own account ahead of the client's, knowing that when the client's order is placed it will move the market and create a profit for the broker.
- The charges stem from an investigation into the front-running of block trades . . . a practice in which a trader takes a position to capitalize on advance knowledge of a transaction large enough to influence the price of securities.2012 October 1, Ben Moshinsky, “Four Charged for in U.K. FSA Insider-Trading Probe”, in Business Week, retrieved 19 May 2014:
3
Business Any practice of buying something the value of which is about to increase due to a future purchase by another, especially where the knowledge derives from a fiduciary relationship.
- Synonyms
- tailgating