What Is the “Best Execution” Obligation and How Does It Relate to Preventing Front-Running?

The "best execution" obligation requires a financial intermediary to execute client orders at the most favorable terms reasonably available under the circumstances. This includes achieving the best possible price, speed, and likelihood of execution.

Front-running is a direct violation because the intermediary uses the client's order for their own gain, intentionally executing the client's trade at a worse price than was available, thereby failing the best execution standard.