What type of rules do regulations prohibiting front running fall under?

Regulations prohibiting front running are categorized as trading rules because they specifically address unethical trading practices that occur in financial markets. Front running involves a broker executing orders on a security for their own account while taking advantage of advance knowledge of pending orders from their clients. This practice undermines market integrity and investor trust, which is why regulatory bodies have implemented rules to prevent it.

Trading rules focus on the conduct of trading in the market, ensuring that all participants operate fairly and transparently. They regulate behaviors that can distort market prices or provide unfair advantages. In contrast, operational rules pertain to the internal processes and procedures of financial firms, sales practice rules govern the behavior of firms and professionals in selling securities to clients, and marketing rules focus on the promotion and advertising of investment products. Thus, the nature of the violation involved with front running aligns it closely with trading rules.