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How Does the Legal Definition of “Insider Trading” Apply to Front-Running?

Front-running is a specific type of insider trading where an intermediary uses MNPI about a client's order in breach of fiduciary duty for personal profit.
Greeks.Live14.11.25

How Does the Legal Definition of “Insider Trading” Apply to Front-Running?

Insider trading is trading based on material, non-public information (MNPI) in breach of a duty of trust or confidence. Front-running is a specific form of insider trading.

It involves an intermediary using MNPI about a client's pending order to trade for personal profit, which is a breach of their fiduciary duty to the client. In the crypto context, a CEX employee front-running a client's order is a clear case of insider trading.

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