Compliance

Front-Running

Trading ahead of a known pending client order to profit from the price move it will cause.

Definition

Prohibited under UMIR Rule 4.1 and CIRO IDPC Rule 3100. Includes trading for a personal account, a related account, or a proprietary account based on knowledge of a pending client order. Constitutes both a regulatory breach and potentially a Securities Act violation. Surveillance systems flag rep accounts that consistently trade just before client orders.

Source

UMIR 4.1; CIRO IDPC 3100

Where this shows up on the CIRE

Outcome 6.4

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