Widely disseminating pre-announced large trades could neutralize front running.

Evidence

The obvious objection was that a sunshine trader would be “front run”: others would sell futures ahead of them, in order to profit from a decline in price brought on by the pre-announced sale. However, the proponents of sunshine trading reckoned that if news of the intended sale was disseminated widely, competition among would-be front runners would tend to eliminate the adverse price effects of front running. — Donald MacKenzie, An Engine, Not a Camera, 878

Categorization

• XREF: Relates to the performativity thesis: an announced model-based trading plan alters the informational environment, so the model becomes self-validating as the market learns to price in the announcement.