Managers Accused of Front-Running
Traders Magazine, March 2004
Knight Trading Group and its previous management are facing front-running charges filed by the Securities and Exchange Commission and the NASD. The regulators recently notified Knight that they intend to bring charges for front running that allegedly took place at Knight between 1999 and 2001. The two executives named ran its trading unit. They are former president Kenny Pasternak, and former head of institutional trading John Leighton. The charges, which were part of a two-year investigation, originated in an arbitration filed with the NASD by the previous head of institutional trading at Knight, Robert Stellato.
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