GAO Report Says Exchanges Detect Abuses that Send Buy Side To Other Markets

TECHNOLOGY STRATEGIES

A recently released General Accounting Office report on intermarket frontrunning says that the nation's self-regulatory organizations (SROs) and regulators have "newly developed surveillance programs designed to detect" the form of market manipulation. The practice--whereby a broker trades ahead of a large institutional trade--is of special concern to buy-side managers and traders, who stand to lose large sums if the sell side acts on leaked information about a planned trade.

The advent of r

To continue reading...