Open AccessThe criminal and administrative type of front running practice and damage to the securities market
Author(s) -
Luís Henrique Lins
Publication year - 2021
Publication title -
mises/mises: revista interdisciplinar de filosofia, direito e economia
Language(s) - English
Resource type - Journals
eISSN - 2594-9187
pISSN - 2318-0811
DOI - 10.30800/mises.2021.v9.1399
Subject(s) - sanctions , damages , business , appeal , market manipulation , front (military) , market liquidity , security market , law , law and economics , finance , economics , political science , mechanical engineering , engineering
The purpose of this article is to clarify non-equitable market practices and crimes against the securities market, especially the practice of front running, in addition to point cases in which individuals acted illegally and indicate the damages to the market that this practice has caused. It also explains the possible criminal and administrative sanctions applied to the practice of front running presently in Brazilian law and whether using HTFs is considered a way of front running. The conclusion is that the practice of front running affects the proper functioning of the securities market. It damages the liquidity of assets and the parity of information principle through the inappropriate use of inside information. In addition, there is an appeal for hardening custodial sentences on crimes against the securities market, as it has greater coercive power than regular fines.