Legality of front running?

But it's pretty funny and ironic how the guys that yell and scream the loudest on ET, accusing others of not knowing what they are talking about, are some of the biggest bullshit artists around. I also find it interesting that they post with some of the most AMAZING spelling errors known to mankind!

"Conspirecy . . . Infrence . . . Absoulty . . . Amatures . . . Diffrence"

The fact of the matter is that any local in the pit of a commodity exchange is free to front-run a large order that is being executed by a floor broker in the pit of that commodity as long as he purchases/sells a contract month different from the one that the floor broker is executing.

Example:

NYMEX Broker "ABC" receives an order to purchase 1500 contracts of Feb. Crude Oil at the market.

Local "XYZ" sees Broker ABC start to buy Feb. Crude in a way that leads him to believe that he has a rather large order that needs to be executed at the market. Local "XYZ" starts lifting offers in March Crude. This is perfectly legal.

True.
 
Quote from Mvic:

then again you guys in the bond pit were the gold standard, the real professionals ;-)
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Thanks Mvic. It was a very competitive pit. Not everyone got along but the guys really got off on taking risk.

BTW: I enjoy your posts.
 
I used to be the floor broker for Paul Tudor Jones back in 1986 in the Gold and Silver pits of the COMEX. I too, can attest to Pabst' knowledge and observations of one institution acting as if they were buying on one side of the pit, while another broker of the same institution was selling the piss out of the contract on the other side of the pit.

Bobby Moss (RAM) was a floor broker in Gold for the infamous Richard Dennis of C&D fame. There were times when he would single-handedly put on the most amazing selling spree in the Gold Pit, even though you thought for sure that he was a buyer.

Yes, he did indeed buy about 400 contracts.
But he also wound-up selling about 1,000 at virtually the same time. The mere rumor of C&D buying a few hundred lots got the word out on the phones and people came in to buy . . . and buy from the selling, Bobby Moss.

It was quite a scene to watch!

:D
 
I pay attention to your posts as it is pretty obvious to me that you have been in this game a while, glad to get confirmation of it.

Nice anecdote Waggie, thanks.
 
It's illegal, yes it is. And figuring out that a large order is going to hit is not even tape reading, it's guessing. What the hell are you people thinking ????
Front running IS insider information trading, you act upon knowledge that is secret.
 
But what shall a CTA then do when he is submitting several orders for his clients? Submittingh the large order first? Or submitting them randomly? Or submitting them in a fixed order qwhich was defined beforehand?
 
For the 10,000'th time, front-running a large order in a commodities pit is NOT illegal if done in a contract month that is not the one that is being executed by the broker.

Furthermore, if anyone has had any experience in a commodity or financial futures pit, they will be the first one to tell you that there is nothing wrong running in front of an order to get FLAT.

Why would anyone think any differently on this?

Moreover, is everyone else suppose to just stand around in the pit and watch themselves and their positions get vaporized because someone has a large order? Do you think that a local simply stands their with their thumb up their ass, waiting for the broker that is doing a ton of buying to finish, so that he can then cover his losing ass short position?

GET REAL
 
Waggie, we should all fell blessed and favored by the words of wisdom by an obvious superior intellect:

Quote from ertrader1:
LOL.....ET stupidity allways puts a smile on my face......
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Perhaps referring to the excellent composition and language skills of this post?
Quote from ertrader1:
First, your a clown. Second.....NO SUCH THING AS LEGAL FRONT RUN OF ORDERS....even if you where A broker at the same time Tudor Jones was on the floor.

What you described is not FRONT RUNNING YOU IDIOT. And to thing you can jump in front of XYZs order with out paying a higher price, let alone thinking ur gona get filled at limit ur an idiot and full of shit ( how is my spelling so far moron?)

Thats the problem with this scrub site......people throwing around words with out clearly defining the definitions.........No wonder ur not on the floor anymore clown.

:D
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Or by the postitive compliments paid to Don?
Quote from ertrader1:


THIS IS THE NEW IMPROVED CHOP SHOP. PERIOD......LOL......but its not wrong.
Take their money.....as long as they know the risks involved.

Go for it DON....you get richer by the Trading Classes.
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Quote from ertrader1:

Man.......please keep them coming
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Sure... the more he posts and shares his infinite wisdom with the rest of us, the more we appreciate standing in his shadow. We are ever so humbled and appreciative. We all realize that ET is way beneath him and we are all glad he condescends to share with us. Thanks.
 
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