Situation where a specialist receives a corresponding buy and sell order for the same security, but instead of matching the two orders up and allowing that deal to be transacted, the specialist completes the offer with shares of the security from his or her account. This is a violation of the rules of the New York Stock Exchange, specifically the negative obligation rule which requires the specialist to match up orders whenever possible. By trading ahead, the specialist gets a better deal for themselves or the firm, and possibly creates a worse situation for the other traders.
Related information about trading ahead:
- Trading Ahead Definition | Investopedia
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- Trading Ahead - Financial Dictionary - The Free Dictionary
A New York Stock Exchange rule violation. Basically, in this situation the specialist puts their firm's interest ahead of the investor's interest. Consider an example.
- What is trading ahead? definition and meaning
Definition of trading ahead: Situation where a specialist receives a ... By trading ahead, the specialist gets a better deal for themselves or the firm, and possibly ...
- Trading Ahead Definition - NASDAQ.com
Trading Ahead: read the definition of Trading Ahead and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
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