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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?


To: nihil who wrote (1135)12/20/1998 10:46:00 AM
From: M. Dion  Respond to of 122087
 
Make no mistake about it....Front running goes on daily by the brokerage community.....Some on a large scale...and some on a small scale......

And since the subject has come out.....Trading on inside information is probably at an all time high.......Just read 3/4 of the posts on individual stocks on silicon investor...

mike



To: nihil who wrote (1135)12/20/1998 1:20:00 PM
From: Arcane Lore  Respond to of 122087
 
Front running is not only a violation of exchange rules, it also can be a violation of the antifraud provisions of the securities laws. Here is a relatively well known case from earlier this year:

sec.gov

Incidently, there is at least one other class of individuals (besides brokers) that can engage in illegal front running (as the term is used by the SEC), namely mutual fund managers. This is also a violation of the securities laws - see footnote 3 of sec.gov.