Front Running
Definition
The illegal practice of executing orders in a financial instrument for one's own account ahead of a known pending client order that is expected to move the market price, thereby profiting from the anticipated price movement. Front running is a form of market abuse and a breach of the duty to act in the client's best interests.
Regulatory Context
Front running is prohibited under MAR, MiFID II, and equivalent legislation globally. It is closely monitored through trade surveillance systems that analyse the timing of personal account and proprietary trades relative to client orders.