What Is a “Trade Reconstruction” and Why Is It Essential for Proving Front-Running?

Trade reconstruction is the process of recreating the exact sequence of events, including all orders, quotes, cancellations, and executions, with precise time-stamps, leading up to and following a suspicious trade. It is essential for proving front-running because it objectively establishes whether the alleged front-runner's trade was executed before the client's order and whether they had access to the non-public information.