(category)Opinion

[Podcast] What Is Front Running, Really?

Getting ahead in the queue, by hook or by crook, has its equivalents in the markets, in the form of front-running. We discuss the concept of front-running, how it's often done, when it's legal and when it's not, and all those little nuances about large institutional transactions.  

CM Team

[Podcast] What Is Front Running, Really?

Picture this: You’re at your favourite bakery, and you overhear that a celebrity is about to place a massive order for your favourite pastries. You rush to buy them all up before the celeb can, hoping to sell them back at a premium. That, in essence, is front running in the financial world. 

We discuss how people pull off this trick and, more importantly, how they get caught.

Axis Mutual Fund had their share of front running drama not too long ago. Traders making big bucks, splurging on luxury pads and flashy cars—sounds like a plot from "The Wolf of Wall Street”. We’ll break down the fallout and the lessons learned.

Currently, a Mutual Fund AMC is going through allegations about front running. 

  • How do you, as an investor, make sense of these allegations and decide on your next move? 
  • Should you hold onto your Quant Mutual Fund investments or start thinking about an exit strategy?

We talk about all this and more in our latest episode of Capitalmind Podcast.

(tag)Podcast

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