How Do “Wash Trading” and Front-Running Surveillance Overlap in CEX Monitoring?
Wash trading is the act of simultaneously buying and selling the same asset to create a misleading impression of market activity. Surveillance systems often look for similar patterns of self-dealing or highly correlated trades in both wash trading and front-running.
While the intent differs (creating fake volume vs. exploiting client information), the tools that track correlated or suspicious trading activity by internal accounts or associated entities are often the same for both violations.
