Can an HFT Firm Be Accused of Front-Running, and under What Circumstances? ⎊ Path

Can an HFT Firm Be Accused of Front-Running, and under What Circumstances?

Yes, an HFT firm can be accused of front-running if they gain access to non-public order information. This could happen if an HFT firm is affiliated with an exchange or broker and misuses that privileged data, or if they engage in activities like "latency arbitrage" that cross the line into using internal, non-public system information.

Simply being fast and using public data does not constitute front-running.

What Is the Legal Distinction between Front-Running and High-Frequency Trading (HFT) Strategies?

How Can an Exchange’s Own Trading Desk Create Information Asymmetry?

What Is the Risk of “Information Leakage” in a CEX’s Derivatives Clearing Process?

How Do “Fair Access Protocols” Technically Prevent a Crypto Exchange Employee from Front-Running?

How Does Latency Arbitrage Differ from True Front-Running on a CEX?

What Are the Ethical Implications of Profiting from Information Asymmetry?

What Is the Difference between Front-Running on a CEX versus a DEX?

How Does the Use of High-Frequency Trading (HFT) Algorithms Relate to Front-Running Accusations?

Glossar

HFT

Velocity ⎊ This strategy relies on ultra-low latency infrastructure to execute a massive volume of orders in fractions of a second, capitalizing on minute price discrepancies.