Define the “Fiduciary Duty” Concept in the Context of a Traditional Financial Broker

Fiduciary duty is a legal obligation for a person or entity (the fiduciary, e.g. a broker) to act in the best interest of another party (the client). In finance, this means a broker must prioritize the client's interests over their own.

Front-running a client's order is a direct violation of this duty, as the broker uses the client's non-public information for personal gain, which is a severe legal and ethical breach.