Abstract
This article investigates the existence of systematic frontrunning on the Toronto Stock Exchange and the role of anonymous orders in concealing frontrunning. There is no evidence of widespread frontrunning activity, with this activity confined to a small number of brokers. In the instances where trading ahead of clients does occur, we find a positive association between the magnitude and frequency of frontrunning with broker activity levels, order size, sell-side orders and informed (profitable) client orders. Although anonymous orders are used more frequently by proprietary traders than their clients, their overall use is low and, contrary to investor perceptions, there is no evidence that they are commonly used to conceal frontrunning.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
