Front Running of Block Transactions

What this video covers

• What the front-running rule prohibits, including causing an order to be executed for someone else while holding material, non-public market information about an imminent block transaction
• Why front running involves market information about an incoming order, while issuer information points to an insider trading analysis
• How the rule applies to accounts where the member or associated person has an interest, exercises investment discretion, or provides the information to a customer or affiliate
• Why knowing less than every term can still trigger the rule when all material terms have been or will be agreed upon imminently
• How the 10,000-share benchmark works, why fewer shares can still qualify as a block, and why slicing an order does not erase its block status
• Which four official channels can make block information publicly available, and why a partial print or selective disclosure is not enough
• How permitted transactions, affirmative written consent, negative consent, and order-by-order oral consent differ, plus why trading ahead of a small customer order can violate another rule