how much front running is going on

Discussion in 'Order Execution' started by burnin, Jan 5, 2004.

  1. dgmodel

    dgmodel Guest

    you serious??? speakers that tell you when a big buyer or seller is coming in on a particular stock right before the order is executed... allowing you to get better pricing and timing and "front run" the trade... follow???
     
    #11     Jan 11, 2004
  2. 60 Minutes and the interview of former Treasury Secretary, Paul O'Neill and the memo dated January 2001 with regards to the "Occupation of Post-War Iraq" with the name of Deutsche Bank in parenthesis?

    Wow!
    Wish I could have that kind of info.

    :(
     
    #12     Jan 11, 2004
  3. very well said

    thanks for the example

    hey, wait, hold the phone, my order for 100 shares is about to hit....:D
     
    #13     Jan 12, 2004
  4. Is this illegal?Also,why would a brokerage firm let other people know about these big orders;what benefit do they derive out of it?
     
    #14     Jan 12, 2004
  5. dgmodel

    dgmodel Guest

    i would have to guess that the firm is not aware of someone on a desk or on the floor supplying ppl with info... and i would have to guess that the person doing it is getting big money from the firms using this info...
     
    #15     Jan 12, 2004
  6. alanm

    alanm

    Quote from waggie945:
    It is completely LEGAL to run in front of a commodity order if you purchase a contract month other than the one being purchased or sold.

    ie.) Broker XYZ on the NYMEX has a 1500 lot order to purchase Feb. Crude. Local ABC "smells" the size and starts "lifting" every offer in March Crude. Totally legal.


    Local ABC could legally buy Feb crude anyway, because it's not his customer/order, though, right? I thought that was primarily what locals do - jump in front of order flow.

    Are you saying that Broker XYZ could lift those March offers for his own account, even though he knows that the arbs will run up February as soon as he does, yielding his customer inferior prices anyway? Not to mention that the addition of the arbitrage will probably create even more slippage for the original customer because of the need for the arbs to make a couple ticks in the process.
     
    #16     Jan 13, 2004