While an investor's ability to simultaneously consider multiple markets to accommodate orders was perceived to allow for more competitive pricing (lower transactions costs), it also led to a form of "_______________" whereby traders with relatively faster access to specific markets can use another trader's planned orders and move ahead of that order.
A)randomized algo
B)front running
C)circuit breaking
D)specialist surfing

Question

Quizplus · Accepted Answer

Front running refers to the unethical practice where traders with advanced access to market information or faster systems exploit this advantage by entering a trade on the basis of a pending transaction they learn about before it is executed, thereby benefiting from the subsequent price movement once the large transaction is carried out.

While an Investor's Ability to Simultaneously Consider Multiple Markets to Accommodate