While front running may be illegal it seems that is possible to do front running if you’re properly placed in the stock exchanges. Max Keiser and Hellen Brown discuss this in the video [1] regarding how this can be done by “specialist brokers.”
For good measure read also Hellen’s article [2].
[1] http://www.youtube.com/watch?v=V5G7zBWMpIs&feature=playe...
[2] http://www.huffingtonpost.com/ellen-brown/stock-market-colla...