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The practice in which a broker conducts a transaction on his/her own account after filling a similar order on behalf of a client. For example, if a client sells 10,000 shares and the broker owns some shares in the same company, he may piggyback by selling his own shares. A broker piggybacks when he/she believes that the client has insider information, or at least a better understanding than the broker on the market's future movements. Piggybacking should not be confused with piggy back registration, which is a different concept altogether.


1. A broker trading in his or her personal account after trading in the same security for a customer. The broker may believe the customer has access to privileged information that will cause the transaction to be profitable.


A broker who piggybacks acts illegally by buying or selling a security for his or her own account after -- and presumably because -- a client has authorized that same transaction.

One speculation is that a broker in this situation thinks the client is acting on information that the broker doesn't have.

References in periodicals archive ?
Known for high quality video game guides, Piggyback titles are released worldwide in five languages simultaneously with the game launch.
Because of his piggyback antics, he has been banned from high school sporting events in Washington, Oregon, Montana, North Dakota and Minnesota.
It has been shown that in a piggyback system, the contribution of power from the soft contact lens is negligible (5) (it has been suggested that the soft lens contributes only about 20% of its power in air).
Black and Hispanies together made up only approximately 35% of all home purchase borrowers, but received nearly 65% of all new piggyback loans in 2006.
A salesman called Max told us it cost E605 a year to piggyback on all numbers relating to a particular service in each county but he could do a deal on the price for various regions.
Louie Beatty, Managing Director of Piggyback commented "The Online League is the first of its kind and offers strong technical and tactical benefits to all Gran Turismo 4 players and Gran Turismo 4 Official Guide readers".
SBA said it will issue specific guidelines on piggyback loans that will allow them to become a consistent part of the program.
The proposed "conceptual conductivity" between image and environment mirrored the sympathetic magic percolating in Schorr's photographs, as viewers inadvertently piggyback on the artist's own desire.
Piggyback units can produce tire components made of up to four different compounds in a single step.
Outcomes are better, and costs are lower following orthotopic liver transplantation using the piggyback technique than with the traditional venovenous bypass procedure, University of Tennessee (at Memphis) researchers report in the June issue of the Annals of Surgery.
We have our guards (2 and 3) piggyback our big man (4 and 5) in front of them.
Media Chaperone's Piggyback application provides parents with important information, parental controls and protection for their child's online learning and play.