PT  - JOURNAL ARTICLE
AU  - Carole Comerton-Forde
AU  - Kar Mei Tang
TI  - Anonymity, Frontrunning and Market Integrity
AID  - 10.3905/jot.2007.694833
DP  - 2007 Sep 30
TA  - The Journal of Trading
PG  - 101--118
VI  - 2
IP  - 4
4099  - https://pm-research.com/content/2/4/101.short
4100  - https://pm-research.com/content/2/4/101.full
AB  - 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.TOPICS: Exchanges/markets/clearinghouses, risk management, developed