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

HFT algorithms' speed allows them to detect and trade ahead of large orders, which is often considered front-running or 'order anticipation.'
Greeks.Live12.11.25

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

HFT algorithms, designed for speed, can exploit minor price discrepancies and information asymmetries. While not all HFT is front-running, some HFT strategies involve detecting large pending orders (e.g. in the mempool or through order book changes) and trading ahead of them.

This practice, often called 'order anticipation,' blurs the line between legitimate speed advantage and illegal front-running, leading to frequent accusations.

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What Algorithmic Strategies Are Used to Detect the Presence of Hidden Volume from Iceberg Orders?
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How Do Exchanges Design “Speed Bumps” or Randomized Order Queues to Counter HFT Detection of Icebergs?

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