To front run someone’s order you need to have advance information of their order s? Normally this means the front runner is operating as a broker. I can’t imagine any HFTs using other HFTs as brokers to forward their orders to the exchange?
To front run someone’s order you need to have advance information of their order s? Normally this means the front runner is operating as a broker. I can’t imagine any HFTs using other HFTs as brokers to forward their orders to the exchange?
I’m sure that there is market microstructure stuff/front running practicalities that would make this harder than it sounds but still you wouldn’t completely be in the dark.
Front running has a specific definition in terms of market regulation (see my other comment) and what you describe is not front-running.
Front-running is when someone with a fiduciary duty - typically a broker or dealer - takes an order from a client and then trades on their own book BEFORE executing the client's order knowing the effect of the clients order on the market and knowing that they can exploit this effect for their own benefit.
I know of no HFTs which have such a relationship with rival HFTs and can't even imagine such a relationship existing never mind it being a frequent cause of why strategies perform poorly for HFTs.
Front-running hasn't been a feature of markets for decades at least. Any sniff of front-running would have the SEC or CFTC fine your company into oblivion and possibly result in jail time or at the very least lifetime bans from the financial industry.
Being faster than someone else isn't "front running" them nor is spotting patterns in other participant's behaviour and exploiting those patterns. The definition of "front running" is reasonably specific: https://en.wikipedia.org/wiki/Front_running