The Quant saga: What is front-running, and its recent history

In the movie 'Too Big to Fail', William Hurt plays the role of Henry Paulson (an American investment banker turned United States Secretary of the Treasury). At the height of the 2008 global financial crisis, Hurt summarised how the banking system works in two lines: "There is not a bank in the world that has enough money in its vault to pay its depositors. It's all built on trust." To an extent, the same applies to the larger financial system. Trust binds the financial system together. Without it, you might as well keep your money under the carpet. As the news of SEBI's investigation of Quant Mutual Fund broke out yesterday evening (June 23, 2024), many have taken to social media to voice their concerns and opinions. But don't succumb to the cha

This article was originally published on June 24, 2024.