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Securities and Futures Markets: Efforts to Detect Intermarket Frontrunning

GGD-91-135 Published: Sep 26, 1991. Publicly Released: Oct 28, 1991.
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Highlights

Pursuant to a congressional request, GAO reviewed regulatory efforts to detect intermarket frontrunning, which occurs when market participants improperly trade stocks, stock options, stock index options, or stock index futures on the basis of nonpublic market information about imminent and material transactions in those instruments.

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Brokerage industryCommodities exchangesDerivative securitiesEthical conductInformation systemsInternal controlsSecurities fraudSecurities regulationStock exchangesStocks (securities)