In this piece, we discuss “front running” - trading ahead of your clients (to profit from the price changes that will come from the client’s trades) for your own firm’s benefit, which is technically illegal.
“The long and ancient secret of Wall Street is they’ve always been front running their clients! In other words when you’re in the customer trading business and then you’re in the proprietary business, which trade are you making first? I don’t know. And if it’s in milliseconds, how’s anybody going to figure it out?” - David Stockman, former Reagan administration budget director