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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 ?
He also received a piggyback ride from a hockey player after a hockey game that same day.
She agreed to try a piggyback lens system for her right eye.
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.
SBA said it will issue specific guidelines on piggyback loans that will allow them to become a consistent part of the program.
Hosein Shokouh-Amiri, MD and his surgical team used the piggyback technique of liver resection without caval excision to treat 34 patients, while 56 patients received the standard procedure of orthotopic liver transplantation with venovenous bypass.
We have our guards (2 and 3) piggyback our big man (4 and 5) in front of them.
pollster in allowing the Republican Party to piggyback on their poll with questions that the papers say struck at their accuracy and credibility.
In recent years, homebuyers in New York took out subprime loans at rates higher than most other large cities and increasingly relied on piggyback loans, leaving our homebuyers highly leveraged and vulnerable to default.
Engel also enhanced its E-Motion Combi series of all-electric multi-component machines (110 to 310 tons) with a new piggyback version that makes it easier to integrate automation, as well as a "premium" high-performance version.
Buyers choose from a dizzying array of new loan products, including 40-year, interest-only (IO), low-document or no-document and piggyback loans, as well as option adjustable-rate mortgages (option ARMs).